In the last issue I carried some of PayPoint's opinions on Camelot entering the bill payments fray. Here is Camelot's response.

"We believe Camelot's entrance into the sector could see this industry come of age, with significantly more money raised for good causes something that no other provider in the sector offers better choice for consumers and a fairer deal for retailers.

"Camelot's proposals offer much for UK consumers and retailers. Cutting-edge new equipment, including the introduction of contactless technology-enabled terminals, will significantly shorten transaction times and queues in stores. This will also offer retailers the option of paying reduced banking charges by processing contactless payments when possible, compared to the higher charges incurred for dealing only with cash or Chip and PIN payments.

"Access to this new technology is something retailers are unlikely to be offered in the short to medium term by any other suppliers or organisations.

"Also, rural communities would benefit if our plans go ahead, as up to 1,000 retailers are ring-fenced to ensure regional communities have access to National Lottery products, and so could potentially also have increased access to additional services through those terminals.

"Our proposals would also provide retailers with favourable commission, better terms, more choice and no exclusivity agreements. Retailers will be under no obligation to accept Camelot's commercial services offering, but those who do will be able to choose exactly which terminals they have in their shops and which transactions they process through them. We believe exclusive contracts restrict retailer and consumer choice."

So now you have to make some tough decisions. PayPoint is asking retailers to sign up for another five years (remember the cancellation penalties) and we don't know yet whether Camelot will get the go-ahead to become competition.