This is the first time a UK bank has launched its own cashback without purchase service, made possible by Barclays’ payments franchise and UK retail bank.

The new service allows businesses with a Barclaycard Payments terminal to offer customers of any bank with a Visa or Mastercard debit card up to £100 per day, without needing to make a purchase. In return, participating businesses will be paid a transaction fee by the bank.

Unlike ATMs, consumers will also be able to receive coins, with no lower limit and non-round amounts such as £8.64 allowed.

Thousands of small businesses around the UK with a Barclaycard Payments terminal are already enabled to offer the service, and Barclays is working with them over the coming weeks and months to promote the service in their communities. Following this, information will be available for consumers to find their nearest cashback without purchase location.

As well as new and alternative places to withdraw cash, the service can also create an additional revenue stream for participating businesses, help local community cash recycling and boost business footfall.

Tim Allen, head of access to cash at Barclays UK, said: “While an increasing number of our customers choose to pay digitally, we recognise that for some, cash remains vital. This service will benefit communities around the country, beyond our customer base, giving them the choice and flexibility to access their money conveniently. This is part of our broader commitment to preserving long-term access to cash for those who require it.”

Konrad Kelling, head of small business acquiring at Barclaycard Payments, added: “Barclays’ cashback without purchase service empowers our small business customers to provide cash and coins in areas where free cash access may be limited. SMEs using the service have also seen it create a new income steam and bring in new customers. We are working with merchants to help them offer the service and raise awareness of it in their local communities.”

Natalie Ceeney, chair of the Access to Cash Action Group, commented: “This new service from Barclays is very welcome. ATMs work well for most people, but having additional places to withdraw cash, particularly if you want to get out less than £10, can help communities and small businesses as well as vulnerable consumers. Making cashback without purchase widely available needs to be a key part of the national strategy to keep cash accessible.”