Lloyds becomes 'first UK bank' to launch new cash feature with £300 rule

Lloyds Bankhas unveiled a new feature which allows customers to pay in cash using a barcode.

The bank, which serves millions of customersacross the UK, announced on Tuesday, August 12, that it is the "first major UK bank" to launch this type of service.

Lloyds customers will have the ability to generate barcodes via the banking app, which can then be scanned at over 30,000 PayPoint locations across the UK. It comes after news that Nationwide will pay bonus £760 into accounts of customers who do one thing.

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Customers will have the option to pay in up to £300 per day in notes and coins, with a monthly maximum of £600 - the barcode will remain valid for two hours. The service starts from August 26.

Lloyds also highlighted that 99.5% of people live within a mile of a PayPoint store, which can also be used for returning or collecting parcels, topping up mobile phones, and paying bills.

Alternatively, Lloyds customers can continue to use branches to deposit cash, utilise Lloyds cash in-and-out machines across the UK, or use banking hubs at Post Offices.

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 continued, stating: "Our latest app feature now allows customers to pay in cash at their local PayPoint in just a few minutes - ideal if they are popping in for milk or dropping off a parcel. With this new innovation, no other UK bank offers as many ways to manage money as Lloyds."

Nick Wiles, CEO of PayPoint, added: "Our leading retail network provides a vast range of essential services at the heart of communities across the UK, for everything from banking, utility, parcel, cash and government services."

Ending by saying: "The ability of Lloyds customers to make cash deposits into their accounts at over 30,000 PayPoint locations will deliver more convenience and access for customers close to where they live."

This follows the bank's decision to remove a key banking privilege -being able to cash in cheques via the Post Office - for customers by the end of the year. Effective from December 31, 2025, Lloyd customers will be able to deposit their cheques via the mobile app.