A pilot program by UK micropayments firm Shrap has begun two pilot programs in Essex and Denny, Scotland to trial and test scalable solutions to help keep cash sustainable.
The Community Access to Cash Pilot program will trial and test the solutions, with the results of the pilot being used to inform regulators and industry so cash can remain a viable mode of payment for consumers across the UK and so small businesses can continue to accept and bank cash. The pilots will run until September this year.
Founded in 2020, Shrap claims it aims to make cash more efficient and convenient by removing the need for coins – including low domination coins – which are regularly only used once, causing great waste and inefficiency.
Shrap’s service is designed to replicate the way coins work but without the overheads. When people use cash in a shop, the business is able to give change onto a Shrap card, which the customer is then able to store on the card – or Shrap’s mobile app – and make small payments to shops and friends for free.
The company claims it has seen significant demand for its service both in the UK and internationally and plans to roll out across the UK later this year. Shrap makes money by earning interest on the money it holds.
Shrap also noted that during the Covid-19 pandemic, with a significant reduction in cash use the cost of maintaining the infrastructure to sort, transport and distribute cash has become unsustainable.
Shrap will also start a further trial soon in Millisle, Northern Ireland.
Chair of the Community Access to Cash Pilots Natalie Ceeney said, “One of the biggest risks to cash is its continued acceptance by businesses, and the biggest driver of cash acceptance is the cost and hassle of handling it.
“We are excited to be working with Shrap across several communities, trialling an innovative solution that enables businesses to continue accepting cash but without the expense and hassle of handling coins. Removing the need for coins in a cash transaction is another step to help us keep cash sustainable.”
Shrap CEO and co-founder Chris Forero-Slee added, “We respect that many people value coins, but are realistic about the fact that cash is under greater threat than ever before – and that it must evolve to compete with digital payment methods.
“We believe that people have the right to choose how they pay one another, without fees and privacy concerns. For this reason, we strongly support the future of cash, but it must be cost-effective to be sustainable. Our digital alternative to coins delivers significant efficiency gains while maintaining what is good about coins: free to use, accessible to all, and they don’t require your personal data. Crucially, Shrap removes inefficiencies and safety concerns that threaten to undermine cash as a whole.”
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