M&S Bank's digital push punishes elderly, say campaigners
The lender, which was sold to HSBC in 2004 but is operated as a joint venture between the bank and M&S, temporarily stopped accepting payments in store in April, a decision which has now been made permanent.
Account holders have been told that from October it will stop accepting cheques or payments over bank, building society or post office counters, also known as giro credit.
Campaigners fear the move will hamper pensioners or those who wish to pay in cash.
M&S Bank said just '1 per cent' of customers use the methods and that most people pay via direct debit, online or phone.
Baroness Altmann, a pensions expert and older people's campaigner, said: 'You are pushing away your most loyal older customers, who have probably shopped with you for decades. It may be a minority but with M&S Bank having so many customers, it will still be a lot of people.
'It tends to be older ones, who are becoming increasingly marginalised in our society. Cash seems to be being phased out because retailers are worried about security. It takes time to pay in and banks are pushing away cash and cheques because they are shutting branches.
'The trouble is many, particularly older and disabled people don't have access to electronic or digital banking, don't have a smartphone. Some people use cash because they find it better for budgeting.'
Caroline Abrahams, charity director at Age UK, said: 'Reducing options will limit some older people, especially those not online or who prefer to use cash. Our recent research revealed not everyone is comfortable banking online or using apps - 27pc manage their account through their branch, while 31pc are uncomfortable with the idea of banking online.
'Businesses should think very carefully. Although physical payment mechanisms may be more expensive to process, limiting their use or withdrawing them could leave some without a way to pay that suits their needs.'
M&S Bank said it had axed 'legacy payment methods' that were 'only used by a very small proportion of customers'.
Account holders will still be able to pay in money at a bank without the giro credit form. It said customers were using digital channels more often, adding: 'We've introduced a pay-bybank option, making it even easier for customers to pay their credit card via the app, as well as being able to pay by direct debit or via their bank.'
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