US digital bank Varo Bank is expanding access to cash-based digital banking by making fee-free deposits permanent at more than 2,000 Kroger Family of Stores locations, following strong uptake during an eight-week pilot launched in July 2026.
The move highlights how digital-first banks are investing in payments infrastructure and retail partnerships to bridge the gap between physical cash and mobile banking. By removing the $4.95 fee previously charged for retail cash deposits, Varo aims to reduce the cost of funding digital accounts and make its services more accessible to customers who still rely on cash.
The service is powered by the Green Dot Network, which provides the payments infrastructure connecting Varo’s digital accounts with participating retail locations. Customers generate a unique barcode through the Varo mobile app, allowing a cashier to process the deposit and transfer the funds into their account.
The service is available at checkout tills and customer service desks across participating Kroger Family of Stores branches in the US. Customers can still load cash by swiping a debit card, although this option remains subject to the standard fee.
For digital banks, partnerships with established retail networks offer a way to extend cash access without building and maintaining their own physical branch infrastructure. The model combines mobile account management with existing retail payment points, giving customers more options for moving between cash and digital funds.
Varo describes itself as the first all-digital US consumer bank to hold a national bank charter. Its product offering spans savings, credit building and payments, with the bank using technology-led services to serve consumers through a regulated banking model.
“Nobody should have to pay a fee just to deposit their own money,” said Varo Bank CEO Gavin Michael. “Following an exceptionally successful pilot, we’re extending the program long term and making fee-free cash add capabilities available at stores nationwide. This allows our customers to access and manage their cash and digital banking in the checkout line, making everyday cash management simple and easy.”
The permanent rollout reflects growing efforts among digital financial services providers to make cash deposits more convenient while reducing friction and costs for customers. For Varo, the partnership expands its cash-access network through existing retail infrastructure rather than a traditional branch network.
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