PayPoint Shops don’t know how to process cash deposits

(Hugh Wells) #43

I tried this yesterday for the first time - the most difficult bit was counting all the cash :slight_smile:

We are working with PayPoint to improve retailer knowledge but it will be a matter of time. For a while we had real sort code acceptance issues but as we’ve grown and people have become more aware of Monzo, they’ve gradually disappeared.

I’m not entirely sure the Post Office vs PayPoint comparison is particularly useful - they are quite different products! PayPoint also have 28,000 stores (to the Post Office’s 11,500) so I would say that is a distinct advantage :raised_hands:


I dunno. I think I’d rather the choice of 11,000 sites with staff fully trained in cash handling and banking, rather than a million sites with staff who don’t have a clue how the processes work, what they’re meant to be doing or why you’re wasting their time and holding up their queue of people trying to buy groceries and lottery tickets.


The are very similar products to be fair. The Post Office is not Royal Mail.

  • You can post and receive items through Collect+ at many PayPoints as well as at a Post Office - just easier to buy it at the Post Office face to face.
  • You can pay a variety of bills through the Post Office like you can at a PayPoint. Depends on the company.
  • You can deposit money at a PayPoint and a Post Office.
  • Many Post Offices have become franchises within shops, like PayPoint, instead of stand alone Post Offices.

Some of the differences are more negative to Monzo except maybe the locations one.

  • PayPoint have 28,000 locations and there are only 11,500 Post Offices. 99% of the UK population is generally within three miles of their nearest Post Office but PayPoints are everywhere.
  • The Post Office deals with banking enquires, deposits and withdrawals, everyday and know what they are doing while many PayPoint locations are struggling to have a clue.
  • Most banks offer their services through the Post Office for free so it is a seamless transaction and the PayPoint route with Monzo costs the customer money.
  • Edit: The Post Office do try to sell extra services such as broadband or financial products, as pointed out by @HughWells below, whilst PayPoint don’t.

I’m sure there are many other similarities and differences, but I’m tired.

(Hugh Wells) #46

I’d disagree just as PayPoint is more of an agent through which transactions are processed - the Post Office can sell you their own broadband, insurance etc. :slight_smile:


I accept that difference and have added it to my list above :grin:


@HughWells - Is there a longterm goal for Monzo to look at the Post Office in the future? I totally understand there’s a hefty cost element there due to the fact that the card chips would need to be replaced etc. It doesn’t bother me personally as I rarely deposit cash anyway but it’s handy to know the service is there with paypoint if ever required but I can see where for others it could be useful to have the post office as well.

(Hugh Wells) #49

I wouldn’t say “goal” - it’s something on our radar but not actively being planned or worked towards. We looked at it as part of the general aim to have cash deposits but PayPoint worked out better (not having to replace all the cards for example :sweat:).

We’ll continue to evaluate how it’s going so if adding Post Office deposits would bring a significant benefit to a good amount of customers we might look at doing it :slight_smile:


Thank you for replying, and it’s good to know it’s something on the radar at least. I totally get that the problems people are having is no fault at Monzo’s end, it’s issues with individual retailers either refusing to even try, or just not knowing how to do it.

I can definitely see the benefit of paypoint though, as for me, my local post office is all the way in the town centre whereas I have a paypoint retailer about a 2 minute walk away.

If some of these kinks could be ironed out at paypoint’s end, I think PayPoint is far more convenient and much more easily accessible for people than the post office.

(Hugh Wells) #51

I think the plan is to send each PayPoint retailer a postcard with instructions :slight_smile:


@HughWells That’s great to hear! I definitely think just something as simple as a postcard would massively help, as it would make the process seamless for customers. Monzo went into this partnership in good faith to provide a much-requested service, and I don’t think for one second, Monzo would ever want to do anything that frustrated customers such as some of the experiences detailed in threads on the community.

Paypoint is extremely convenient and far more accessible than the Post Office, so if these minor blips are sorted out, I think everybody would truly see the benefits of PayPoint.

(Allie) #55

True, but do PayPoint machines even have chip readers? I thought they were purely magstripe affairs (remember the old top-up cards for mobiles? Things like that).

Also, I realised, the Post Office must be doing something other than just reading the PAN off the chip - because new cards are required. Makes me want to compare old and new Starling cards and see the change…

(Andy) #56

Yeah they do have chip readers, quite a few pre payment energy meters use chips for topups

(Allie) #57

Ooh, I didn’t know that. One of the flats in my building has a prepaid meter (there’s a shared meter cupboard) and it has some kind of key thing, not a card.

With the amount of competition in the energy market, I’m amazed any of these things are still around to be honest. Even for people who prefer prepaid or have no credit history, smart meter prepaid tariffs that are cheaper and easier to top up are available.

Which brings us back to PayPoint. Who does it really exist for and how long can it continue? While I give them credit for constantly trying to add things… SuperDry uses them for returns (it wasn’t a bad experience, the guy knew how, the return worked… But dropping my return off at a small little shop felt so sketchy), for example, the reality is that in 2019 there are just easier, better and more accessible ways to do everything they do.

While they largely aim at the unbanked, banks like Monzo improve the accessibility of financial services so much (don’t trust me, the Queen agrees!) that the world of shadow banking (including PayPoint) just can’t survive much longer. It’ll be like cash, a slow death, but it can’t last.

And maybe that’s actually the brilliance… Use a service on the same downward trajectory as cash itself for cash handling. And let them both fade away, replaced with better, cheaper, safer alternatives.


I added cash to my Amazon account at a PayPoint and it was a very quick and easy affair.

(Allie) #59

Isn’t that basically just buying yourself a gift card?

I swear I’m not trying to be cynical. It’s just hard for me to see this business as having a future.


In effect yes, but any amount between £1 and £250.

(Allie) #61

Isn’t that the same with gift cards? And gift cards have no fees (does PayPoint for Amazon?)


No fees in PayPoint. Unsure if you buy a phyiscal giftcard with cash in any amount.

(Marcus Nailor, Hot Coral Detective) #63

You can order a physical gift card, for any amount, and have Amazon from deliver it to you :slightly_smiling_face:

But AFAIK, you can only buy set denominations in stores, £15, £30, £50, etc :yum:

(Allie) #64

Ah yes that’s what I was thinking. They have them on the website for any amount. Cool they PayPoint charges no fees for this to the customer. It makes sense. Like any payment processing the merchant should eat the cost.