PayPoint says it is on target to reach its goal of 8,000 installations of its new PayPoint One terminals by the end of its financial year.

Chief executive Dominic Taylor said 5,000 of the new terminals were already in service, with 1,296 coming on stream since the beginning of the financial year.

Retailers’ strong take up of PayPoint One had seen PayPoint introduce and standardise the service fees for legacy terminals across 14,000 sites.

This had resulted in “a small amount of retailer churn”, which it had expected, and its UK network reduced by 449 during the first quarter to 28,727 outlets.

Group organic net revenue climbed 4.2% from £27.3m to £28.4m in the quarter to the end of June, despite a 4.5% decline in transaction volumes to 150.3m.

PayPoint attributed the decline in transaction volumes to what had been an expected decline in its UK pre-pay energy volume, which growth in its net revenue per transaction through a shift to smaller but higher yielding clients partially offset.

Net revenue on a reported basis, including the results of PayByPhone, which was sold at the end of last year, fell 4% from £29.6m to £28.4m.

UK and Ireland retail services net revenue climbed 10.5%, driven by PayPoint One service fees, card payment transactions which grew by 8.3% to 24.1m and ATM transactions which increased 5% to 10.2m.

PayPoint said it was pleased with the performance of its parcel service, which increased volume by 16.6% to 6.1m. The Collect+ network expanded to 6,521 sites up by 354 since the beginning of the financial year.

Net revenue in bill and general decreased by 2.7% as transaction volume declined by 11.2%, driven mainly by a 15.1% reduction in prepay energy volume, with the shift in mix towards smaller but higher yielding clients partially offsetting the decrease in transactions.

Top-up transactions declined by 14.4% as the prepaid mobile sector continued to contract.