I am not debating that major banks have agreements with them for some of their account types. However with about 15,000 more outlets PayPoint is a better option.
Locally we had our Post Office close in our town (and the next town over) but still have two PayPoint outlets in a large Co-op and a small McColl’s.
When we used to have a Post Office any deposits to Lloyds or Monese arrived the next banking day, but with PayPoint to Monese they are instant. I think those of us wanting the immediacy of app banking would also prefer that speed of deposit over the lumbering giant of the Post Office with it’s legacy systems.