Bank Machine, the UK’s premier ATM operator, today issues a cutting criticism of the plans for contactless cards from the major banks, with a prediction that their introduction will only make the credit crunch bite harder for UK families.

A leading figure in the financial services sector for 10 years, MD Ron Delnevo says: "The announcement of further investment in contactless cards from the banks this week is further proof of their commitment to killing off cash. They are already orchestrating the demise of cheques in the UK, despite the fact that over 25 million of us issued personal cheques last year. Their next project is to arrange a similar fate for cash. This stands in direct conflict with the wishes of the British public who used cash for 60% of purchases last year*. We believe that, if left unchecked, banks could virtually phase cash out in as little as 10 years.”

“It is bitterly ironic that the announcement coincided with the publication of new research** which proves that consumers budget better when they pay with cash, which means that the contactless capers of the card issuers fly in the face of consumer interest. It doesn’t take in-depth research, however, to realise that contactless cards will be family budget busters: if consumers can literally ‘touch and pay’, it will be far harder to keep a track on expenditure.’”

Bank Machine recently announced a Bank of England-backed initiative to launch 20+ ATMS around the country which will only dispense £5s in a bid to help people manage on limited budgets and to get more £5s in to circulation.

Notes to editors:

* Based on statistics from APACS report, UK Cash and Cash Machines 2007
** Research carried out by academics from New York University and the University of Maryland (click here to view) which showed that people were prepared to pay significantly more when they knew that they were able to pay by card.

1. Last year, £186 billion was dispensed from cash machines in the UK, an average of £5903 per second.

2. Ron Delnevo, Managing Director of Bank Machine, is a former Director of the Payments Council as it was formulating the National Payments Plan, published in May 2008.

3. Bank Machine created the UK's independent ATM market ten years ago and now has over 2,500 cash machines in locations including cinemas, garage forecourts and retail outlets - ranging from Selfridges to convenience stores.

4. It began by installing pay-to-use cash machines in convenient locations, but has since been building a free-to-use network - with over 650 free-to-use ATMs installed in, for example, NHS hospitals, military bases and low income areas.

5. Based in Hatfield, Hertfordshire, Bank Machine (a division of Cardtronics Inc.) now has nearly 100 staff.

6. For further information about Bank Machine, please visit its website (www.bankmachine.com) or contact Fran Cooke at Quintus Public Affairs on 0207 340 6260 / email fran@quintuspa.com