Even today private banks in Northern Ireland and Scotland issue pound notes redeemable into poundssterling, and in Hong Kong paper currency is supplied exclusively by private banks.
If you pay at the airport, it worked out that being about 10 pounds (in weight, not sterling) over the expected baggage total weight yielded a fee that was almost the same as the original ENTIRE TICKET.
If you do pay in pounds, the merchant will charge you to convert the local currency into sterling and then charge you again to convert back to the local currency.