Learn about the trials
This research project, funded by the Reserve Bank, recognises the important role of retailers in the cash system.
Options being trialled include us paying retailers for readily providing fee-free cash-outs to customers with or without purchase, and providing local cash deposit and change withdrawal facilities for retailers.
The trials are expected to start in 2025 in 6 to 9 communities in different parts of Aotearoa New Zealand. Each community has a population between 1,000 and 10,000 people and has lost most or all bank-provided counter and cash services.
Our research will run for at least 12 months to inform future work to support cash use and the cash system. An independent research provider will monitor and evaluate the trials.
The project is being managed using an agile approach, which means that timing and other details may change as planning and implementation continues.
Timeline
What's coming up
Arrangements for trials
We're getting ready for the trials by working with community representatives, service providers and our research partners.
Final trial communities announced
Roll-out and other details to come
Cash allows individuals and groups to trade easily and instantly with each other. It supports cultural customs such as koha, family, community, and business life.
We know that about 6% of the population rely on cash to live their lives, and these people tend to be among more vulnerable groups — for example, the young, elderly or disabled. They may not have a bank account or online access for a variety of reasons. People who rely on cash are also more likely to live rurally or be Māori.
Most of us want to have the option of paying in cash and do use it occasionally. We also know that it’s a great back-up option when power and data essential to digital payments are down, as seen during extreme weather events.
While there is a continuing trend away from cash towards digital payments for everyday transactions, we know that some of that is driven by provider incentives to pay digitally — for example, points programmes or disincentives to deal in cash — for example, removing cash services from branches, increased travelling time to remaining branches or ATMs, and reduced opening hours.
We know people value the option of using cash, even if they don’t use it very often. We want to explore how best to keep that option available. The trials enable us to explore new ways of providing cash services in a cost-effective way.
Digital cash would be another form of central bank money to circulate alongside cash, and not a replacement for it. We want central bank money – whether cash or any future digital cash– to be widely available and accepted.
Central bank money provides a state-backed alternative to money held in commercial bank accounts which rely on the strength of the bank concerned.
Central bank money also provides a marker of value for the New Zealand dollar, helping make sense of prices, and what private money is worth and can be exchanged for.