A woman uses a cash machine at a Lloyds Bank branch in central London
A woman uses a cash machine at a Lloyds Bank branch in central London Reuters

Lloyds Bank customers will soon be able to deposit cash at local shops across the UK, expanding access to basic banking services without the need for a branch visit.

The change comes through a new mobile app feature linking the bank with PayPoint's nationwide retail network. It is designed to give people more flexible ways to manage their money, particularly in areas where branches have closed.

How the New Service Works

More than 30,000 PayPoint locations, including convenience stores, supermarkets and newsagents, will take part in the scheme, according to the News Letter. Customers will be able to access the feature via the 'Everyday' section of the Lloyds Bank mobile app.

To deposit money, users generate a barcode in the app, which is valid for two hours. They then present it to a PayPoint retailer, who scans the code and accepts the cash. The money appears in the customer's account within minutes.

There are deposit limits of £300 per day and £600 per month. Both notes and coins can be deposited, offering a simple way to deposit money into an account while carrying out everyday errands such as buying groceries or posting a parcel.

Why This Service Matters

Lloyds has continued to close branches across the UK in recent years, citing falling footfall as more customers use online and mobile banking. This has led to concerns about access to cash and essential services, especially in rural or less densely populated areas.

Gabby Collins, Payments Director at Lloyds Bank, said the new PayPoint partnership would make depositing cash easier for customers. 'It's ideal if you are popping in for milk or dropping off a parcel,' she told Birmingham Live.

According to The Guardian, services such as this have become increasingly important as banks withdraw from high streets. Other measures include expanding over-the-counter banking through retail outlets and community partnerships.

General view of signage at a branch of Lloyds bank, in London

Launch Date and Potential Impact

The service will go live on Tuesday 26 August 2025, the Liverpool Echo reported. From that date, customers will be able to use their nearest participating shop to deposit money without needing to travel to a branch or post office.

PayPoint operates an extensive network of over 30,000 retail outlets across the UK, with many open from early morning until late at night, and some trading 24 hours a day, 365 days a year. This extended access allows customers to use cash services outside traditional bank opening hours.

Industry analysts note that other banks have already begun replicating the Lloyds–PayPoint model. By enabling cash deposits through its mobile app and partnering with PayPoint's network, Lloyds is part of a growing trend to extend banking services beyond traditional branches. This approach aims to maintain customer reach and convenience, even as physical branches close and the shift toward digital tools accelerates across the sector.

While the service does not replace all branch functions, it could help maintain access to one of the most basic transactions: paying in cash. For customers, the change means that the local corner shop could soon double as a point of contact with their bank, offering speed, convenience and wider availability than many existing options.

Writer's pick