EXCLUSIVE: Average store in PayPoint–Link cash access trial handing out £700 per month in withdrawals

The average PayPoint store taking part in its cash over the counter trial with Link has handed out approximately £700 in cash from their tills per month.

New data captured by Better Retailing from a now-deleted Link web page shows the 13 small shops given access to the new cash machine style services have completed 700 cash withdrawal transactions and 100 balance enquiries since the trial was launched in mid-September 2020. The average withdrawal size was £26.80.

Unlike cashback, retailers are paid for providing the service by the cardholder’s bank via PayPoint, similar to the ATM commissions process. Unlike ATMs, customers can withdraw precise amounts rather than just demoninations of notes.

The towns taking part in the trial are Burslem in Staffordshire, Hay-on-Wye in Powys, Cambuslang in South Lanarkshire and Denny in Falkirk.

The scheme is an attempt to fill the gap left by the switch off of thousands of free to use cash machines in the last few years, partly driven by Link’s decision to cut the amounts banks have to pay ATM operators for providing the services. However, Link said legislative changes would be required before the scheme could role out nationally.

Despite Link spending £1m on the trial, awareness of the scheme was low in stores in the area. Better Retailing contacted both PayPoint registered stores in Hay-on-Wye, six in Cambuslang and three in Burslem and none were aware the scheme was operating near them. One retailer said they were approached to take part in the trial despite already having a free to use ATM.

Adrian Roberts, chief commercial officer at Link, said: “The pilot has got off to a strong start and it’s very encouraging to see so many consumers making use of and benefitting from this new service. As we use less cash, solutions such as this become more important as ways of providing free access to cash in all communities.”

PayPoint chief executive Nick Wiles added: “It’s great to see this pilot receiving strong local engagement in some of the UK communities that have traditionally faced restrictions over free access to cash.”