Vending companies in the UK are being encouraged to prepare for the introduction of a new £1 coin, which is set to enter circulation in March 2017.
The treasury has launched a new website, explaining to businesses how they can be ready for the change.
The 12-sided pound coin, described as ‘instantly recognisable’ due to its novel shape, consists of a gold-coloured outer alloy formed of nickel and brass, and a silver-coloured inner ring combining nickel and plated alloy.
The Royal Mint, which produces the UK’s coinage, has said that the coin’s micro lettering, its milled edges and a new hologram feature will enhance the security of the coin and make it more difficult for counterfeiters to reproduce. The coin also has a ‘hidden high-security feature’ that is built into the coin.
But businesses that operate vending machines will need to invest in upgrades so that the coin mechanisms are compatible with the new pound coin.
David Gauke, the chief secretary to the treasury, said: “The introduction of this new £1 coin will be a highly significant event and we are working with The Royal Mint to ensure key industries are ready and to ensure a smooth transition.
“The new £1 coin will be the most secure of its kind in the world and its cutting-edge features will present a significant barrier to counterfeiters, reducing the cost to businesses and the taxpayer.”
The Royal Mint chief executive Adam Lawrence said: “We are hugely proud of the new 12-sided £1 coin, which has been designed using cutting-edge technology at our South Wales site. We would encourage business owners to visit the website as soon as possible, to find out how the new £1 coin could affect their business and what steps they need to take to prepare for the launch of the coin in March 2017.”
But the Automatic Vending Association (AVA), speaking earlier in the year, said that it was ‘regrettable that the upgrades required to vending machines to accommodate the new £1 coin will incur considerable costs for our operator members’. It pointed to the example of the new £0.05 and £0.10 coins, which were last changed in 2011 at a cost of £28.9 million to the industry at large.
The introduction of the new coin is part of a wider update to the UK’s notes and coins, following the release of a new polymer £5 note this year and ahead of the scheduled introduction of a similar £10 note next summer.
Speaking about the effect that a new plastic £5 would have on the vending industry, AVA chief executive Jonathan Hart said: “All currency changes are costly to our industry. There is no government funding in place to assist vending operators when it comes to upgrading our machines to accept new currency – each operator has to bear the brunt of these costs.
“To upgrade machines to the new polymer £5 notes, we estimate it will cost £75 per machine and, with 35,000 machines to upgrade, this looks set to cost our industry in the region of £2.6 million.”
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