Some people who receive benefits, pensions and other payments through the MiCard may be given cash or pre-paid debit cards in the future.
Treasury Minister Dr Alex Allinson was asked about the impact of the withdrawal of the service, which was announced last month.
Responding to Speaker Juan Watterson, he said that most people who currently use the service will have the money paid into their bank accounts.
He added: “Treasury is currently exploring the possibility of providing prepaid debit cards and cash payments to those small number of individuals who do not have access to a bank account.
“Expressions of interest will shortly be sought from businesses and organisations who are registered with the IOM Financial Services for banking purposes.
“It is not possible at this stage to say how much this new service might cost, but the cost must also be offset against the saving arising from ending the MiCard contract with the Post Office and the extra flexibility it will give to benefit recipients.”
Post Office
While the move will save about £500,000 a year, it is also expected to have some impact on the island’s remaining post offices.
Dr Allinson said his department is “conscious that the ending of the MiCard service will have some impact on sub-post offices
and this was included in the previous retail network strategy document as presented to Tynwald”.
He added: “The magnitude of the impact will depend on each sub-post office’s operating model. Treasury will continue to work with the Isle of Man Post Office during this transitionary period between now and the end of December next year.”
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