Lloyds has added a new feature to its app which allows customers to deposit cash at over 30,000 payment locations.

Through the app, users generate a barcode which is scanned at a PayPoint location.

The barcode is valid for two hours after activation in the app.

They can deposit up to £300 per day in notes and coins and £600 per month.

Lloyds, which says it is the first bank to offer the service, added that deposited money will appear in a customer’s account “within minutes.”

Lloyds added that customers can still use branches of Lloyds, Halifax and Bank of Scotland to pay in cash as well as visit Banking Hubs, which have counter services run by the Post Office.

Additionally, customers can use 11,500 Post Offices across the UK to do their everyday banking, including paying in or withdrawing cash.

“We’re always looking for smart ways to make banking more flexible and give customers more choice,” said Gabby Collins, payments director at Lloyds. “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.”

In October last year, Deutsche Bank’s retail banking subsidiary Postbank rolled out a similar digital service that enables customers to deposit or withdraw up to €1,000 in over 12,500 retail locations around the country.

Using the Postbank app, account holders are able to generate a barcode that can be shown to withdraw or deposit their money within two hours at available retailers, with the app also showing nearby locations.

In September last year, Lloyds Banking Group announced plans to shutter an additional 55 bank branches across the UK, bringing the total number of closures planned by 2026 to nearly 300.

The move was part of a broader corporate restructuring aimed at reducing costs and encouraging customers to embrace digital banking services.

Lloyds reported a significant 55 per cent decline in transactions at the affected branches over the past five years, while usage of its mobile banking app has seen substantial growth.

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