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The Growing Conflict Over Cash Withdrawals: Blik’s Fixed Fee Under Scrutiny
ATM operators are raising alarms over the current reimbursement model for Blik cash withdrawals. Planet Cash, a prominent ATM network, has revealed that it receives only $0.30 from Polski Standard Płatności (PSP) – the operator of the Blik system – for every transaction. This stagnant fee, dating back to 2010, is now being cited as the primary reason behind increasingly restrictive withdrawal limits at Euronet and Planet Cash ATMs, signaling a growing dispute in the realm of mobile payments and physical cash access.
Understanding the Blik System and the Dispute
Blik is a popular mobile payment system widely used in Poland, allowing users to make instant payments, online purchases, and cash withdrawals directly from ATMs using a six-digit code generated by their banking app. While convenient and increasingly popular, its current financial model for ATM operators is proving unsustainable.
How Blik Compensates ATM Operators
Independent ATM networks that facilitate Blik cash withdrawals are becoming a new battleground in the ongoing debate about the cost of cash services. Planet Cash highlights that for each Blik withdrawal, they receive a mere $0.30 from PSP. Crucially, this fee remains constant whether a user withdraws $25, $200, or $250.
According to IT Card, another major player, this reimbursement level is comparable to rates from 2010. Since then, operational costs for ATMs have escalated dramatically due to:
- Significantly higher energy prices.
- Increased costs for cash logistics and security.
- Rising inflation impacting all aspects of business.
Despite Blik’s soaring transaction volumes and customer popularity, this fixed, outdated fee fails to cover the real expenses of maintaining essential ATM infrastructure. From the perspective of ATM operators, the current cooperation model with PSP is no longer economically viable.
Implications for Blik Withdrawals at Planet Cash ATMs
In response to the unchanging fee, Planet Cash has announced adjustments to its services. A statement on their website indicates that:
“Due to Polski Standard Płatności (owner of the BLIK system) maintaining an unchanged remuneration rate for ATM operators, the limit for a single BLIK code withdrawal in the Planet Cash network will be adjusted and dependent on the economic conditions of the specific ATM location.”
It’s important to note that these Blik limit changes will generally not affect customers withdrawing cash from ATMs of banks that partner directly with Planet Cash. For these users, existing withdrawal limits for Blik transactions will typically remain in place.
The True Cost of Maintaining an ATM
ATM operators frequently emphasize that limitations are driven by the actual costs generated by cash transactions. Maintaining an ATM involves a complex array of expenses far beyond the initial purchase and depreciation of the machine itself. These include:
- Location Costs: Rent or lease for the ATM site.
- Utility Expenses: Electricity consumption and telecommunications links.
- Security: Monitoring and professional security services.
- Maintenance: Technical servicing and regular inspections.
- Cash Handling: This is often the most significant and rising cost, encompassing:
- Insurance for cash in transit.
- Processing and counting banknotes.
- Loading and unloading cash.
- Armored transport (convoy) services.
- Labor costs for staff managing the devices.
The National Bank of Poland’s reports on payment instrument costs consistently show that a substantial portion of cash-related expenses for banks and infrastructure providers is linked to withdrawal, deposit, and transport processes. In essence, every ATM withdrawal incurs a real, multi-component cost. Under the current Blik model, this is “compensated” by a flat fee of $0.30, which operators argue is completely out of sync with current economic realities.
What Lies Ahead: Awaiting Blik Operator’s Response
PSP’s earlier reassurances, stating that restrictions only applied to Euronet and that “nothing is changing” for other networks, have quickly become outdated with similar limits emerging in another major network like Planet Cash. Unless PSP proposes a new compensation model – either a higher flat fee or a percentage-based component – these limitations could spread to more ATM networks and locations.
Following Euronet and Planet Cash’s moves to restrict Blik withdrawal limits, the question now is whether other operators will follow suit. IT Card has already indicated that in locations where withdrawals do not cover costs, limits will be “corrected” downwards, while limits for card withdrawals may remain higher. In a worst-case scenario, ATM networks might further differentiate Blik availability based on the issuing bank, location, and withdrawal amount.
Conversely, if PSP decides to increase the rates for ATM operators, it is highly probable that these higher costs will be passed on to users. As PSP is owned by a consortium of banks, such a scenario could lead to Blik cash withdrawals from ATMs incurring additional fees, similar to transaction fees sometimes applied to card withdrawals today.
Frequently Asked Questions (FAQ)
What is Blik?
Blik is a popular mobile payment system in Poland that allows users to make payments, online purchases, and ATM cash withdrawals using a unique six-digit code generated by their banking app.
Why are Blik ATM withdrawals being limited?
ATM operators like Planet Cash and Euronet are limiting Blik withdrawals because the fixed fee they receive from Blik’s operator ($0.30 per transaction) is too low to cover the rising costs of maintaining and operating ATMs, especially given inflation and increased cash logistics expenses.
Will I have to pay extra fees for Blik withdrawals in the future?
It’s a possibility. If Polski Standard Płatności (PSP), Blik’s operator, increases the fees paid to ATM operators to resolve the dispute, these higher costs could potentially be passed on to consumers in the form of additional transaction fees for Blik ATM withdrawals.
What is Polski Standard Płatności (PSP)?
Polski Standard Płatności (PSP) is the company that operates the Blik mobile payment system in Poland. It is owned by a consortium of Polish banks.
Source: Bankier, Planet Cash, Cashless.
Opening photo: Gemini.
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