PayPoint’s new Counter Cash service is being offered to stores with free-to-use ATMs, despite promises the cashback service would be targeted at the UK’s “cash deserts”.

Launched last month, the optional service enables retailers' customers to withdraw cash denominations from 1p to £50, and check their balance from participating shops, which are paid commission for providing the service.

In successfully lobbying for the legislative changes needed to launch the service, PayPoint and Link pledged the service would be used to improve access to cash in areas without ATMs.

However, analysis of PayPoint’s Counter Cash and the UK’s free ATM network revealed a number of dual sites.