Local shops will become “cash machines” under a new scheme, following an alarming decline in access to physical money particularly for rural areas.

Customers in select shops will be able to get cashback of up to £50 and check their balance without charge or the need to purchase items, in areas where there is little access to banknotes and coins. 

The scheme will be rolled out in 2,000 retailers by the end of the year, with further expansion planned for 2022. It has been launched by cash machine network operator Link as an answer to the decline in cash.

The service will be available at corner shops via Paypoint machines currently, which also allow shoppers to pay utility and other bills. It is hoped in time a large and wider range of retailers and payments providers will opt in. Customers will be able to request as little as 1p.

The number of free cash points in Britain has fallen by a quarter since January 2018, with fewer than 50,000 remaining.

Local shops who sign up will effectively operate as a stand-in for the traditional hole-in-the wall and local bank branch, which are also rapidly declining in number. Currently, most shops only offer cashback to customers purchasing goods and some do not offer the service at all.