PayPoint has announced that it is working with LINK, the UK’s largest cash machine network, to pilot a new “cash over the counter” withdrawal service.

The new service is being trialled at 15 locations this summer. Cardholders will be able to withdraw up to £100.

Customers will insert their bank card and PIN in to a PayPoint terminal, telling the retailer how much they would like to withdraw and the retailer will give them cash directly from their till. The PayPoint terminal will act just like an ATM, removing the need for an additional machine.

With a minimum withdrawal of just 1p and completely free to use, the service is designed to give people another way to access their money free of charge and to strengthen financial inclusion.

If the trial is successful, the service is likely to be rolled out to complement existing ATM coverage in 2019.

Dominic Taylor, chief executive of PayPoint, commented: “We’re delighted to be working closely with LINK to bring an innovative solution to market that will help customers and local retailers alike. This is yet another example of how local retailers are playing a critical role in delivering vital services to their local communities every day across our network of 29,000 stores, a network bigger than all banks, Post Offices and supermarkets put together.”

John Howells, CEO of LINK, said: “LINK is committed to promoting financial inclusion and supporting extensive free access to cash. The number of ATMs is at a record high, but there are still areas, including rural and remote communities, where cash access can be significantly improved. This is why we are excited to work with our members and the LINK Consumer Council on this pilot with PayPoint and explore how, together, we could increase people’s access to cash, regardless of where they live.”