Spain's government wants cashback at shops across the country
Getting cashback from shops and supermarkets is hardly ever possible in Spain, but the Spanish Parliament has now approved a proposal to promote the practice, in part to solve the problem of bank access in rural areas.
The Spanish Commission for Economic Affairs and Digital Transformation on Tuesday approved a proposal by the country's political party Ciudadanos to promote the use of cashback in shops across the country.
Cashback is a practice that is common in many countries in Europe including Germany and in France, where it was introduced in 2018.
In the UK, citizens have enjoyed the cashback scheme since 1990.
For those who are unfamiliar with how it works, cashback is when you go shopping, usually at the supermarket, and you have the option of taking some money out in cash with your purchase, instead of having to go to the bank.
It’s essentially just like going to an ATM or a bank teller, but instead, you tell the supermarket cashier how much you want and they will give you the cash.
It will automatically be debited from your account when you pay with card, along with the amount of your shopping bill.
The UK even started introducing cashback without having to make a purchase in the summer of 2021.
The objective is to reduce dependency on cash machines, which are very expensive to maintain.
READ ALSO: Spanish banks' ATMs are disappearing or being replaced
According to cash withdrawal app Topii, just to keep one ATM operational, it costs €1,000 a month and 56 daily cash withdrawals are needed to pay for maintenance.
It is also aimed at helping those in rural Spain who now no longer have access to a bank, as many of them ceased to be operational over the last 15 years.
Since 2008, 22,363 branches have closed in Spain, which is more than half of those that existed then.
According to a 2022 Bank of Spain report, 55 percent of municipalities, in which 1.6 million people live, have difficulty accessing cash.
The Spanish Banking Association, the Confederation of Savings Banks (CECA) and the National Union of Credit Cooperatives (UNACC), confirmed that currently a total of 657,557 people in Spain do not have access to any banking service and there is no bank branch in 4,378 municipalities.
READ ALSO: How rural Spain is rebelling against rampant bank closures
Recent Bank of Spain data also revealed at the end of the second quarter of 2022, there were 46,530 ATMs, which is 1,109 fewer than at the end of 2021 and 15,184 fewer than in 2008.
Thirty percent of transactions in Spain are still done by cash and cashback is one of the main solutions to help thousands across the country that have trouble accessing it.
Customers of Dutch bank ING are some of the few people in Spain who already have access to cashback and have been able to since February 2022. Currently, ING customers can ask for cashback at over 30,000 points including Supercor, Hipercor, El Corte Inglés supermarkets, fuel stations Shell, Disa, Galp and Atenoil, and shops belonging to the DIA group.
READ ALSO: How to get cash out in Spain when there are no ATMs
In 2021, Spain’s PSOE party also came up with a solution to the problem, suggesting that cashback should be available at Correos branches, the country’s national postal service.
It's not yet known exactly when cashback will become available across Spain, but as it's now been approved and talks have been in the pipeline for a while, it's likely it we may see it here in the near future.
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The Spanish Commission for Economic Affairs and Digital Transformation on Tuesday approved a proposal by the country's political party Ciudadanos to promote the use of cashback in shops across the country.
Cashback is a practice that is common in many countries in Europe including Germany and in France, where it was introduced in 2018.
In the UK, citizens have enjoyed the cashback scheme since 1990.
For those who are unfamiliar with how it works, cashback is when you go shopping, usually at the supermarket, and you have the option of taking some money out in cash with your purchase, instead of having to go to the bank.
It’s essentially just like going to an ATM or a bank teller, but instead, you tell the supermarket cashier how much you want and they will give you the cash.
It will automatically be debited from your account when you pay with card, along with the amount of your shopping bill.
The UK even started introducing cashback without having to make a purchase in the summer of 2021.
The objective is to reduce dependency on cash machines, which are very expensive to maintain.
READ ALSO: Spanish banks' ATMs are disappearing or being replaced
According to cash withdrawal app Topii, just to keep one ATM operational, it costs €1,000 a month and 56 daily cash withdrawals are needed to pay for maintenance.
It is also aimed at helping those in rural Spain who now no longer have access to a bank, as many of them ceased to be operational over the last 15 years.
Since 2008, 22,363 branches have closed in Spain, which is more than half of those that existed then.
According to a 2022 Bank of Spain report, 55 percent of municipalities, in which 1.6 million people live, have difficulty accessing cash.
The Spanish Banking Association, the Confederation of Savings Banks (CECA) and the National Union of Credit Cooperatives (UNACC), confirmed that currently a total of 657,557 people in Spain do not have access to any banking service and there is no bank branch in 4,378 municipalities.
READ ALSO: How rural Spain is rebelling against rampant bank closures
Recent Bank of Spain data also revealed at the end of the second quarter of 2022, there were 46,530 ATMs, which is 1,109 fewer than at the end of 2021 and 15,184 fewer than in 2008.
Thirty percent of transactions in Spain are still done by cash and cashback is one of the main solutions to help thousands across the country that have trouble accessing it.
Customers of Dutch bank ING are some of the few people in Spain who already have access to cashback and have been able to since February 2022. Currently, ING customers can ask for cashback at over 30,000 points including Supercor, Hipercor, El Corte Inglés supermarkets, fuel stations Shell, Disa, Galp and Atenoil, and shops belonging to the DIA group.
READ ALSO: How to get cash out in Spain when there are no ATMs
In 2021, Spain’s PSOE party also came up with a solution to the problem, suggesting that cashback should be available at Correos branches, the country’s national postal service.
It's not yet known exactly when cashback will become available across Spain, but as it's now been approved and talks have been in the pipeline for a while, it's likely it we may see it here in the near future.
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