Following the Bank of England’s recent announcement that the £20 note is to go the way of the £5 and £10 notes to also become polymer, CMSpi exposed the true cost of the polymer migration to UK businesses – a massive £240 million. Prior to CMSpi’s announcement, many retailers (despite the relatively short timescale until plastic notes come into circulation in the 2nd half of 2016) were not fully aware of the extent of the adaptation required for the conversion – and the subsequent costs.
CMSpi is also concerned about the reasoning and decision making process involved in the Bank of England’s conclusion to replace paper with plastic.
“The announcement that the £20 note will also be printed on polymer will only add to the huge operational challenges facing UK retail companies,” says Brendan Doyle, CEO of CMSpi. “It is frustrating that the bank has declined to conduct a cost-benefit analysis, particularly as cash transaction volumes are in decline. And while the bank has promoted the security of polymer, the value of counterfeit notes is falling and is a mere fraction of the value of card fraud – counterfeit cash accounted for about £8 million in 2014, compared to the rising £455 million of annual card fraud, for example.”
Aided by Moorgate’s outreach, the announcement was covered by The Guardian, Daily Mail, BBC Radio 5 Live, BBC World Service, Business Reporter, Finextra, The Grocer, Western Morning News, Shropshire Star, Express & Star, Herald Scotland, Petrol Plaza, Plastics & Rubber Weekly and Today’s Group