Karmactive Staff
Lloyds Bank has introduced a new service that lets customers deposit cash at thousands of convenience stores across the UK. The system works through a barcode on their mobile app and comes with specific daily and monthly limits.
Starting from late August 2025, customers can now deposit up to £300 per day in notes and coins at more than 30,000 PayPoint locations nationwide. The monthly limit is set at £600, and each barcode remains valid for two hours after generation. This makes Lloyds the first major UK bank to offer this type of mobile barcode deposit service.
The process is straightforward. Customers open the Lloyds app and go to the ‘Everyday’ section. Halifax and Bank of Scotland apps also support barcode deposits. They generate a barcode showing how much money they want to deposit. At the PayPoint store, they hand over their cash and show the barcode for scanning. The money typically appears in their account within minutes.
This service has proven popular since launch. More than £1 million has been deposited through PayPoint’s BankLocal service just weeks after its launch on 26 August. The rapid adoption shows there was clear demand for this type of banking service.
The first transaction on the launch day was processed by Harshil Shah, owner of General Store & Newsagents in Leicester, just hours after the service became available to Lloyds customers. Shah was surprised by how quickly customers started using it.
The new system addresses a growing need for accessible banking services. With 99.5% of people living within a mile of a PayPoint store, they provide a convenient way to take care of many everyday errands. Over 94% of PayPoint stores are open seven days a week.
PayPoint stores already handle various services including parcel collection, bill payments, gift cards, and mobile top-ups. Adding cash deposits makes these locations even more useful for daily errands. Customers can now combine banking with their regular shopping trips.
Gabby Collins, payments director at Lloyds, stated: “We’re always looking for smart ways to make banking more flexible and give customers more choice.” She emphasized that the service is ideal for people running quick errands like buying milk or dropping off parcels.
Nick Wiles, chief executive of PayPoint, said: “Our leading retail network provides a vast range of essential services at the heart of communities across the UK.” The partnership strengthens PayPoint’s role as a community service hub.
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The £300 daily and £600 monthly limits apply specifically to PayPoint deposits using the barcode system. These limits don’t affect other deposit methods. Customers can still use bank branches, Post Office counters, or cash machines for larger deposits without any new restrictions imposed.
Traditional banking options remain fully available alongside this new service. Customers can continue using any of the 11,500 Post Offices across the UK for deposits and withdrawals. Banking hubs staffed by Post Office workers are also accessible nationwide. Lloyds, Halifax, and Bank of Scotland branches still offer complete banking services including larger cash deposits.
The service comes at no extra charge to customers. Lloyds processes these PayPoint deposits free of charge, and the full deposit amount goes into the account without deductions.
“The speed in which the BankLocal service has reached this milestone validates the consumer demand for this service and demonstrates the importance of local convenience stores to the communities they serve,” Anthony Sappor, retail propositions and partnerships director at PayPoint, said.
This development reflects broader changes in UK banking. With bank branches closing and people seeking more convenient options, services like PayPoint deposits help maintain access to essential banking functions. The combination of mobile technology and local retail networks creates new possibilities for financial services.
The success of this launch may encourage other banks to develop similar partnerships with retail networks, potentially expanding cash deposit options across the entire banking sector.
