Nobody’s Using the USPS Postal Banking Pilot

Financial reports revealed the USPS program opposed by credit union groups brought in zero revenue and just one user across the most-recent quarter.

David Baumann


Aug 10



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David Baumann

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David Baumann

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Financial reports show program opposed by credit union groups brought in zero revenue and just one user across most recent quarter.

You know that postal banking pilot program that has had financial services trade groups and congressional Republicans furious?

Nobody’s using it.

The US Postal Service on Tuesday released its financial reports for the third quarter of FY22.

The pilot program generated no fee revenue for the USPS during that quarter because nobody used the program in those three months, the report stated. Further, during the previous quarter between January and March, only one person used the program.

Background on the Issue

Overall, since its launch on September 1, 2021, only seven customers have used the pilot program, which has generated a total of $41.65 in revenue.

Without much publicity, the USPS began the pilot program in September. It allows customers to use a business or payroll check to purchase a gift card; the maximum amount permitted is $500. No cash is disbursed. The program is being tested in the Bronx, NY; Washington, DC; Falls Church, VA; and Baltimore, MD areas.

Outlook for the Program

The postal service has not decided whether to expand the program or shutter it, according to the financial report.

“No determinations for future plans have been made since the previous update submitted on May 10, 2022,” the USPS stated in its financial report. The Postal Regulatory Commission, which has raised legality questions about the pilot, has required the USPS to file quarterly updates.

The USPS contends that the program is not a banking pilot, which is prohibited under federal law.

Credit union and banking trade groups have argued the opposite—that the pilot is a banking program.

The House has passed a FY23 Financial Services appropriations bill containing report language that directs the USPS to expand the pilot. The Senate version of that spending bill does not contain that language and the Senate has not yet considered its appropriations bills.

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