The Post Office is considering a bid for one of the UK’s largest independent ATM operators, in a move that would significantly expand its cashpoint operations.
The group, which runs the largest branch-based access-to-cash network in the United Kingdom, is exploring a deal for Notemachine after its parent company, Brink’s, put it up for sale.
Notemachine is one of the largest independent ATM providers in the UK, operating thousands of cash machines and supplying around 20 per cent of all cash dispensed across the country.
The Brink’s Company originally acquired Notemachine in October 2022 for nearly $180m, making it a significant player in the UK’s independent cash machine market.
A potential deal would complement the Post Office’s banking hub model, which seeks to replace closed bank branches across the country.
It would allow the group to move beyond its brick-and-mortar storefronts and rapidly deploy community banking offerings in rural and high-traffic areas.
Over 30 banks and building societies currently pay a multi-million pound annual fee to the Post Office for network access, allowing millions of customers to use services at its sites.
Lenders first partnered with the Post Office in 2017 under “The Banking Framework”, extending the collaboration for three years in 2022, before a new five-year deal was agreed last year to keep cash services running on the high street.
Brink’s, which specialises in cash and valuables management, announced a major deal to acquire global fintech firm NCR Atleos earlier this year for $6.6bn, which triggered scrutiny from regulators.
The UK’s competition watchdog warned that a merger of the two entities would reduce ATM choices for businesses and potentially lead to higher fees for consumers accessing cash.
Brink’s subsequently said it would divest its ATM units in order to secure regulatory approval for the NCR Atleos merger.
In early October, the firm confirmed that the Competition and Markets Authority had accepted the “proposed remedy” and that it was engaging with potential suitors for the divested assets.
The Post Office’s interest in Notemachine signals a broader strategic ambition to deepen its role as a provider of everyday financial services for communities across the UK.
The Post Office and Brink’s both declined to comment on the reported discussions.