The policy is part of new legislation from Irish politicians to ensure the public has access to cash so that no shopper is "left behind".
ADVERTISEMENTBusinesses in the Republic of Ireland are soon to be required to accept cash following new rules approved by the government earlier this week (on 23 January). The surprise decision comes at a time when most other developed economies, including the Nordic countries, the UK and New Zealand, are moving further away from cash.
These rules, to come into effect later this year, will ensure that shoppers are not "left behind" and a more financially inclusive society is promoted, Irish politicians say.
Ireland now moves one step closer to countries which are still primarily cash-reliant, such as Morocco, Egypt, Greece and Bulgaria.
Currently, only corner shops, supermarkets and pharmacies have been told to take cash, but it is unclear whether this may later be extended to other kinds of establishments.
ATM companies are also likely to be affected and may now be required to ensure that there is a steady flow of €10 and €20 notes at all times. Not only that, but there are also increased calls not to cut back further on cash machines.
Ireland focuses on new access to cash measures
The new rules have been proposed following a retail banking review back in 2022 and are part of a slew of updated measures forming part of the access to cash legislation.
This could potentially work in favour of the Irish public as, according to a Department of Finance survey in 2023, more than 90% of adults still use cash regularly and it is also the favoured methods of payment for about 25% of people.
As reported by Yahoo Finance, Finance Minister Michael McGrath explained: "We have to ensure that people are not left behind and we must avoid the risk of financial exclusion. We must recognise the important role that cash continues to play in all our lives and this is a role I am determined to protect."
Rishi Sunak refuses to force UK businesses to take cash
Back in 2019, the UK also tried to take similar steps, with then-chancellor, Philip Hammond promising to keep cash - from the penny coin to the £50 note - available.
"Technology has transformed banking for millions of people, making it easier and quicker to carry out financial transactions and pay for services," Hammond pointed out.
"But it's also clear that many people still rely on cash and I want the public to have a choice over how they spend their money."
However, Prime Minister Rishi Sunak in 2023 refused to force UK businesses to accept cash, insisting the government would be overstepping its reach into matters concerning individual businesses if it tried to make them.
Natalie Ceeney, a civil servant and chairwoman of Cash Access UK, has warned Britain is risking "sleepwalking into a cashless society", as far as future access to cash is concerned.
In France, businesses are required to take cash, unless they suspect it to be damaged or fake.
European Union legislation recommends that, unless customers are happy to pay in another method, businesses should accept cash payments.
