The British Royal Mint produces all of the coins in the UK and serves more than 100 other currency-issuing authorities around the world.
According to the BBC the money factory churns over five billion coins every year, employs 850 staff members and has been in operation since the 13th century. The pressure to push alternative payment methods across the UK and Europe continues to increase, but the mint and its workers continue to run as they did nearly 700 hundred years ago.
What does the traditional British coin capital reflect about its society today, and what does it say about the UK’s payments progression?
Cashless Canteen Policy
Ironically, the Royal Mint is a place where money is literally made, yet there exists a no-cash policy within its walls. Money is found everywhere you look, except in the pockets of the 850-member staff. The building enforces tight security—complete with military police—who patrol the site to make sure no employee is carrying cash. Staff, along with visitors, are required to leave all cash in their personal lockers located in the reception area.
When teatime and lunch roll around, those who are interested can go to the canteen for food and drink, but must pay with a pre-loaded staff payment card. The cards can be topped up at a credit machine on site, but must be loaded before going through security at the beginning of the workday.
Since the canteen holds the same cashless policy, the lunch line runs quickly, despite the mint’s 850 team. The BBC indicates that this workplace proves the efficiency of a cashless system, and reflects the potential of a British society that could adopt a similar cashless way of life.
Cash Continues To Thrive
However, Kevin Clancy, director of the Royal Mint Museum, disagreed and said to the BBC, “There still seems to be a fondness for coinage and the portable aspect of money. Even the most modern economies and cultures in the world still have a strong attachment to notes and coins.”
According to a 2012 report by the British Retail Consortium, cash remains the most popular payment method in the country: especially in shops. In 2012, cash was used for 54 percent of transactions. At present, there are an estimated 28.9 billion UK coins in circulation, which hold a value of about £3.9 billion.
Clancy stated, “Cash is part of how we live our lives. It has not changed very much because it works well.”
Slight Change Amongst British Change
Consumer preference for cash continues to dominate, however the cost of production has been rising largely due to the increasing cost of copper. To counter these changes, the mint now make 5 pence and 10 pence coins with steel that is coated with a layer of nickel, instead of the former copper-nickel alloy.
Prices have changed, but many coins still hold traditional commemorative meaning. The silver penny was originally designed as a gift for newborn babies. As part of the British culture, a baby’s birth is honored by crossing the child’s palm with silver—in this case: the silver penny. This tradition still stands, as 2,013 of these silver coins were given to the Duke and Duchess of Cambridge in honor of their first child.
Despite a rise in new payment options, the UK Royal mint carries on with business as usual. There may never come a time when the factory is no longer needed since it represents more than just a popular means for trade commerce: it represents a country’s deeply-rooted culture.
To read the BBC article click here.
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