The decision to award the benefits account card scheme to the Post Office is good news for small firms, according to one industry body.
In news which might be of interest to business insurance customers, the Federation of Small Business (FSB) believes the move will help branches stay open.
This will be welcomed by companies as 80 per cent of them had stated they would have to take drastic action to survive.
Clive Davenport, FSB trade and industry chairman, said: "The Post Office has an unrivalled geographical spread, particularly in rural areas, and awarding the contract to the Post Office will help save thousands of post offices, businesses and jobs."
The decision should also help keep trade local as many branches offer other services as well, he added.
Yesterday, the Forum of Private Business urged small firms to make use of the VAT relief Cash Accounting Scheme if they are eligible.
The tax break is open to firms with a turnover of less then £1.35 million.
