The Post Office is shortly expected to exceed £3 billion a month in cash deposits and withdrawals for the first time in its 360 year history, stated recent reports.
The Post Office said it handled £2.99bn of cash in September – the highest amount in a single month so far. It added that branches have already had the busiest first week for cash ever in October – and deposits and withdrawals are expected to exceed £3bn this month.
As per reports, Post Offices handled some £1.06bn in business cash deposits in September, up by around 3 per cent month-on-month.
Personal cash deposits stood at around £1.2bn in September, while a total of £685m was withdrawn over the counter at the Post Office’s 11,500 branches.
“Each month brings news of further bank branch closures, and in many communities across the country Post Office is already the last counter in town,” Martin Kearsley, banking director at the Post Office, said.
The increase in transactions at post offices is attributed to bank branch closures. The Post Office has an agreement with many banks which allows people to do their everyday banking at its branches.
The news comes as the contactless card transaction limit got increased from £45 to £100, meaning more opportunities to use tap and go payments where once cash might have been used.
“Despite the impending increase in contactless payments, we know that small businesses in particular recognise the value of cash now more than ever.
“We’re preparing for continued increases at our branches as Postmasters support local businesses in their community by staying open long hours and weekends, providing a convenient and secure place for businesses and the self-employed to deposit much-needed cash takings,” he said.
However, a recent Post Office survey found nearly half (44 per cent) of small hospitality and leisure businesses in the UK rely on cash daily.