Withdrawals from PayPoint’s Counter Cash service are now topping more than £1m per week in convenience stores across the country, new data reveals.
The free-to-use cashback-without-purchase facility is available at 4,800 PayPoint stores in different parts of the UK. These locations, communities that have below-average free access to cash, have provided more than £28m in cash withdrawals in the past 12 months.
PayPoint data reveals that 29% of withdrawals are for amounts you can’t withdraw from a traditional ATM – multiples of £5, £10 or £20 – showing that hard-up consumers are making every penny count as the cost-of-living crisis worsens. Over a third (36%) of withdrawals are for amounts under £10.
The data shows there has been a steady increase in total withdrawal values month-on-month. In the week commencing 14 November, 19% of withdrawals were non-ATM denominations to the penny, 29% were non-multiples of £5, rounded to a pound or to a penny, and 14% were for £9.99 or less.
In the first two weeks of November withdrawals of £9.99 or less were up 15%, compared to the first two weeks in October. They were up 28% and 54% compared to the first two weeks of September and August, respectively.
Alex Kemp, Head of ATM & Cash Solutions at PayPoint, said: “Through the cost-of-living crisis, we’re now seeing what a valuable service Counter Cash is for the communities that use it. The data shows that, potentially, up to a third of people can’t even afford to withdraw standard amounts like £5 and £10 from traditional ATMs. What’s clear is that as taxes and costs rise, people are having to watch and control their outgoings more tightly, and often need to budget down to the last penny. Counter Cash allows them to do that in ways that traditional cash machines don’t.
“Withdrawals of £9.99 or less are rising at a significant rate, up 15% for the first two weeks of November versus the same period in October and up 54% versus August. We’re also seeing accelerating growth of total withdrawal values. The first two weeks of September were up 3% on the same period in August, rising to 8% in October and 16% in November month-on-month.
“This all indicates that people are increasingly relying on taking out smaller denominations of cash at more regular intervals. It is a trend often seen among those who are having to manage their finances and spending very carefully.”
