Plans have been revealed to give shoppers access to "click and collect" cash from supermarkets or have money delivered to their home with online food orders, in a bid to protect the public's access to money.
The scheme is intended to help the one in six people who still rely on cash, as thousands of ATMs are stripped from the high street.
"Cash in Shop" differs from existing "cashback" services - where money is offered when shoppers buy something.
The service allows customers to choose when and where they collect money, with no need to buy anything, Mirror Online reports.
They can see which shops have cash and pre-order it to collect in minutes, in the same way as foreign currency, however for free.
The app will also let customers have money delivered with their groceries or takeaways.
The concept has already been successfully trialled in Switzerland - and will be the first of its kind in the UK.
Run by finance firm Sonect, it launches in Burslem, Staffordshire, next month.
Chains such as One Stop, Spar and Bargain Booze are on board, plus small local stores - and also some takeaways.
The Treasury has been consulting on a similar 'cash in shop' concept since October, however it is yet to reveal the findings.
The measures would allow people to withdraw cash at till points without having to make a payment first.
The report said the new proposals would protect access to cash for vulnerable groups - such as the elderly.
It is against EU rules for shops to offer cashback to consumers who aren't purchasing goods, however, the UK has more jurisdiction now that it has left the union.
There would be no minimum spend.
John Glen, Economic Secretary to the Treasury, said: "We know that cash is still really important for consumers and businesses – that’s why we promised to legislate to protect access for everyone who needs it.
"We want to harness the same creative thinking that has driven innovation in digital payments to maintain the UK’s cash system and make sure people can easily access cash in their local area."
It said when local shops accept and dispense cash, it is recycled through local communities and there is less need to transport and distribute notes and coins via cash centres, which reduces the associated costs.
In 2019, consumers received £3.8billion of cashback when paying for items at a till – making it the second most used method for withdrawing cash in the UK behind ATMs.
