Cash deposits and withdrawals have hit their highest levels since 2002 as an increasing proportion of Brits no longer have bank accounts.
And cash customers are increasingly being bribed to take their cash to the Post Office instead of using their own home currency and vouchers.
The volume of the former, declined by 3.5 percent compared to the previous year, while the latter, increased by 5.1 percent.
This is the first time that cash has failed to register an increase since the first records were made in 2002, according to the Office for National Statistics.
Across the country there were £2.3bn in cash deposits and withdrawals, £52m more than in the previous year.
This equates to around 16p per person, on average, across the country.
And in some parts of the country there were even larger disparities – most notably in Dorset, which saw payments to the Post Office rise by 18 percent.
There were also increases of around 8.4 percent across the rest of the country.
Dr Vaizey said: “The UK’s banks have allowed customers to choose whether or not they prefer to pay for their transactions using a debit card, a physical bank account or a cash machine.
“Many people have opted to use cash machines at the Post Office instead, using them to make automatic purchases on purchases cards.
“It’s reassuring to see that more people are choosing to cash out at the Post Office, and while these figures show a general increase in cash withdrawals at the Post Office, it is reassuring to know that in some parts of the country the shift away from cash is much larger.”
This increase came despite the introduction of the new nationwide £10 note which with increase the price limit of using cash machines from £10 to £20.
Nationwide, 20 percent of cash users between the ages of 16 and 24 have chosen to use the Post Office, compared to just 13 percent of those aged 50 years and over.
In 2015, around six million Britons – 2.5 million of which were over 60 – still used cash and the Royal Mail runs more than 22,000 cash machines.
But a growing number of people have not changed their payment methods since the introduction of the £10 note in February 2015, according to the Centre for Economics and Business Research.
An increasing proportion of card transactions have taken place within the last five years, which means cash payments are falling.
More than a third of all card transactions have come from individuals who have opted to take cash out instead of paying using their debit or credit card.
And payments made through mobile phones have also increased, it said.