Cash pledge from the Co-op

The Co-op has pledged to help disadvantaged or isolated communities avoid becoming “cash deserts”.

The convenience retailer said it will offer free ATMS in every store where possible, and if not offer free cashback services or Post Office counter withdrawals where customers are dependent on the payment method.

Co-op said its commitments would counter high street bank closures, removal of free ATMS and the rise of cashless retailing.

New research by the grocery chain into the spending habits of 16 million shoppers found a north-south divide in the use of cash, with many disadvantaged communities relying on notes and coins to budget during the cost-of-living crisis.

Matt Hood, co-managing director of Co-op Food, said: “Insight and data within our latest report indicates that while contactless has become the preferred way for many to pay, cash still remains a key payment method that the public looks to for confidence and security.”