Increased margins and reduced wastage resulting from PayPoint One’s Epos Pro platform diminishes the issue of retailers’ commission, according to the company’s ceo Dominic Taylor.
In the six months to September 30, a total of 1,692 new PayPoint One sites were installed across the UK, taking the total to 11,246, with Epos Pro live in over 400 sites.
“The issue of commission has been around a long time. What they [retailers] must remember is that we drive footfall into these stores that could be going elsewhere. It allows retailers to sell other products in the store and make further money that way,” Taylor told C-Store at the announcement of the group’s half-year results.
“One retailer in Huddersfield originally had a cash register, but after an Epos Pro was installed he increased margin, reduced wastage and freed up time for himself. And, he can now measure stock turn in store.
“If a retailer can improve their average stock turn by just one week, they could benefit from up to £70,000 a year. This simply diminishes the issue of commission prices.”
But Mo Razzaq, of Family Shopper Blantyre and Premier Mo’s Convenience Store in Glasgow, believes retailers won’t continue using PayPoint “until it is worth their while”.
“We’re not getting the commission we want, deserve or need. We need a banking rate that suits us,” he said.
“In terms of their new products, if they want support from retailers, they’ll need to give us a better commission in all honesty. Why should we promote something we are not going to make money on or even lose money? Where is the logic in that?
“In terms of their footfall argument, most retailers don’t really believe in that argument anymore as you can argue that any product creates higher footfall.”
Meanwhile, Taylor said the ATM partnership with Link was yet to take off.
“The Link and ATM trials have not produced any value for retailers yet, but we are still in the trial period,” he added.
“It is important for retailers because we are in a climate where consumers do withdraw less cash, but we’re here to say that you don’t need to have an ATM to withdraw and do a form of cashback.
“We need to trial properly. If the trial is successful, it will drive a whole new stream of service to the retailers, subject to cash availability.”