I live in a village where there is no bank, and no dedicated post office (although the post office in the local shop does accept paying cash in and withdrawing).
The shop is also a paypoint merchant.
It would take me around an hour round trip to deposit cash right now (at a bank) - An hour of my time is worth far more than a pound (forgetting about the cost of fuel and potential parking).
So, I don’t have an issue as such with that charge per se, and if we are moving to a digital banking system with no branches etc, there will have to be a compromise somewhere.
My biggest issue here is that there currently IS a better solution than PayPoint, which has been shown to be unreliable, terrible service, and seemingly poor business practices.
I don’t like comparing Starling and Monzo with every little decision they make, but clearly Starling thought long and hard about this, negotiated with the PO, changed the cards (at their cost), and made it work very well.
Monzo tried to sell the benefits of PayPoint, and actually play down the benefits of the PO (in my opinion, to justify their decision) - But now they seem to have admitted defeat, and are looking at a PO integration.
Whilst there is a free solution to paying in cash for legacy banks (branch and PO), and for challenger banks (Starling and PO), the “fee” argument will exist.
If the PO does start charging, there will be less of an argument.
I’d certainly not revert back to going into a branch for the sake of £1 though (especially given I do it once per year at best).