Lloyds Bank customers will soon be able to deposit cash at local shops across the UK, expanding access to basic banking services without visiting a branch. In August 2025, Lloyds announced a new mobile banking feature a “barcode cash deposit” system integrated into the Lloyds Bank Mobile App Update (2025) . Customers use the app’s Everyday section to generate a unique barcode (valid for 2 hours) and then show it at any of over 30,000 PayPoint retailer locations nationwide. The shop scans the code and takes the cash (notes or coins) on behalf of the bank. Deposited funds (up to £300 per day, £600 per month) appear in the account within minutes, giving a quick and convenient deposit process without branch or ATM visits.

How the PayPoint Deposit Feature Works

Customers launch the Lloyds Mobile Banking app and open the Everyday section. To make a cash deposit:

• Generate Barcode: Tap “Generate barcode” in the app. A one-time barcode is created (valid for 2 hours).
• Present at Shop: Go to a nearby PayPoint store (supermarkets, newsagents, convenience stores) and have the cashier scan the barcode.
• Insert Cash: Hand over the cash (notes and/or coins) to the retailer.
• Instant Credit: The cash is credited to your account almost immediately.

This process leverages PayPoint’s existing point-of-sale terminals, so no extra hardware is needed beyond the mobile app. The deposit shows up in the account in real time, and the customer receives a notification confirming the transaction. Daily deposit limits apply (£300 per day, £600 per month) to manage risk.

Benefits for Users

Branch closures have left many communities without easy bank access. Lloyds Bank itself plans to close hundreds of branches by 2026, making alternative deposit options crucial. By linking the app to PayPoint (99.5% of people live within one mile of a PayPoint location), Lloyds dramatically expands cash access. As Payments Director Gabby Collins explains, the feature is “ideal if you are popping in for milk or dropping off a parcel” – customers can top up their accounts during everyday errands. Over 30,000 high-street shops (many open 7 days a week) become instant deposit points.

Key user benefits include:

• Convenience: Cash can be deposited without a special trip. Customers simply generate a code in the app and deposit while shopping.
• Extended hours: Many PayPoint shops stay open evenings/weekends, so deposits aren’t limited to bank hours. Over 94% of PayPoint outlets operate seven days a week.
• Wide coverage: In addition to PayPoint, Lloyds customers still have branches, ATMs, and 11,500 Post Office counters. The new feature adds to these options, giving more choice than most competitors.
• Speed: Deposited money appears in the account within minutes, far faster than mailing a cheque or visiting a slow ATM queue.
• Simplicity: The code is scanned; no paperwork or deposit slips are needed. Both notes and coins are accepted, making it easy to deposit change.

Technical Details & Limits

The barcode cash deposit is built into the Lloyds Bank app (iOS and Android). Key technical points include:

• Secure one-time barcode: The app generates a digital barcode valid for only two hours. Once scanned, it cannot be reused.
• Deposit limits: Customers can pay in £300 per day and up to £600 per month in cash. These limits combine notes and coins to prevent excessive deposits.
• Retail network integration: The feature works at 30,000+ PayPoint stores (including convenience stores and newsagents). The existing PayPoint terminals simply scan the barcode and connect to Lloyds’ system to credit the account.
• Instant processing: Deposited funds post to the account immediately. According to Lloyds, the money appears in the customer’s account “within minutes” after scanning.
• Continued banking options: Lloyds customers can still deposit cash at Lloyds/Halifax/Bank of Scotland branches, Lloyds “Cash In & Out” machines, or Post Offices (11,500 nationwide). The new mobile feature complements these by adding high-street shops.
• App ecosystem: This update joins Lloyds’ suite of mobile banking tools – including card controls, subscription managers, budgeting tools, etc. – all running on modern, secure technology.

Security and Fraud Protection

Security is a priority for this feature. Lloyds describes it as a “new secure way to pay in cash”. Safeguards include:

• Time-limited codes: Each deposit barcode expires after two hours, so it cannot be stolen and reused later.
• Encrypted transactions: The barcode is generated and transmitted using encrypted protocols, so sensitive information never traverses insecure channels.
• Device integrity checks: The Lloyds app actively checks the user’s phone. If malware is detected or if the device is jailbroken/rooted, the app will crash or block access. The guidance explicitly states: “If our app detects malware… we block access to keep your information safe”.
• Biometric/PIN protection: The app supports fingerprint or face recognition, and always requires the customer’s PIN or biometric login to initiate any transaction. This adds an extra layer of authentication.
• Real-time monitoring: Users receive instant notifications for account activity. The Lloyds app’s fraud controls (like alerts for card use or money received) apply here too, so any unexpected deposit would be flagged immediately.
• Industry standards: These measures align with the latest mobile banking security UK 2025 expectations. Lloyds explicitly notes the app uses “the latest tech to keep customers and their money safe”, reflecting current best practices (encryption, biometric login, etc.).

Comparison with Other UK Banks

Lloyds is a pioneer with this in-app retail deposit. For comparison:

• NatWest/RBS: Customers can pay cash at Post Office branches (using a paying-in slip) or via standalone Cash Access deposit machines in some areas. They do not have a mobile app barcode deposit.
• Monzo: The digital challenger allows cash deposits at PayPoint stores, but it requires the customer’s Monzo card to be swiped by the retailer. Lloyds’ method is smoother – the app alone provides the code, no card needed.
• HSBC/Barclays: These banks rely mainly on their own branches, ATMs, or the Post Office network (11,500 outlets) for cash services. As of 2025, neither has announced anything like Lloyds’ barcode system.
• Other digital banks: Most (e.g. Starling) use Post Offices or PayPoint as third-party partners, but with manual processes. None match Lloyds’ fully integrated app solution.

Lloyds itself notes that with this feature it offers more options than any rival – even claiming “no other UK bank offers as many ways to manage money”. While all banks allow some form of cash deposit (branches, Post Offices, ATMs), Lloyds’ PayPoint integration is unique in UK banking at present.

Sources: Details are drawn from Lloyds Bank and PayPoint press releases and news reports, along with information on UK banking services.