Lloyds Banking Group (LON:LLOY) will let customers of Lloyds, Halifax and Bank of Scotland deposit cash at more than 30,000 PayPoint (LON:PAY) locations across the UK.
The deal makes Lloyds the first major high street bank to plug into PayPoint’s BankLocal service, which until now was mainly used by digital challengers like Monzo and Starling.
This is less about chasing fintech cool and more about cold economics. PayPoint’s network is embedded in convenience stores, corner shops and petrol stations, places that are open late and easy to reach.
For customers, it means more flexibility. For Lloyds, it could reduce the need for underused branches, a move that might please accountants but rile communities already hit by bank closures.
For PayPoint, Lloyds is a trophy client. The company has made cash access a growth priority alongside its e-commerce and Love2shop voucher businesses. First-quarter revenue rose 7.5% to £42.2 million, and it is sticking to its £100 million adjusted earnings target for the year.
Cash is shrinking as a payment method, but the cost-of-living crunch has slowed its decline. This deal gives Lloyds more reach without more real estate, and gives PayPoint credibility that could draw in other high street names, potentially changing where and how people bank in the UK.
Paypoint shares were up 1.2% in London this morning.