PayPoint says 450 retailers have left the network

  • Print
  • Share
  • Comments (5)
  • Save

More than 4,200 sites have installed next-generation PayPoint One terminals, while 450 retailers have decided to give up their old T2 boxes because of the £10 “legacy charge” coming into force next month, PayPoint revealed at the release of its latest preliminary results.

In the year ended 31 March 2017, the company achieved an operating profit of £53.3m in its core retail networks, up 1.1%, with net revenue of £117.5m, up 6.2%. Total pre-tax profit was £69.1m in a set of results that included the disposals of the company’s mobile and online payments business, and a restructuring of its Collect Plus parcels network to accommodate more than one carrier.

PayPoint chief executive Dominic Taylor told C-Store that the transition of the business “gives us the opportunity to focus on the retail network” and the roll-out of the PayPoint One terminal.

“We don’t want any retailers to withdraw from the network, but we do have this challenge in that the T2 terminal is old technology and is not the platform to take us forward,” he said. “To date, 450 retailers have said they want to get out, out of the 15,000 letters we issued. I’m not saying this to be complacent, it’s just a statement, but I would prefer it if not one retailer left.

“PayPoint One is unique technology, which should suit a whole range of retailer experience. We are investing £10m in capex this year in order to drive value and also to make sure we have a better-informed field force, better able to deal with retailer enquiries when they contact us.

“Our aspiration is to provide first class service to retailers. We acknowledge we have been a long way off that in the past, but we are absolutely determined to drive our retail business forward.”

The company has set a target of 8,000 PayPoint One terminals to be in place by the end of financial year. Later this year the system will be able to offer net settlement for card payments, meaning that shoppers could pay by debit card and the amount will be automatically reconciled to the retailer’s bank account without bank charges.

Readers' comments (5)

  • I think that everyone should band together and boycott the paypoint... what's the point when we work for hardly any commission and now some of our retail shops we have to put in our own money to pay for this crap service. Then they won't even do away with charging the customers for using the service even though we get charged by them. It's a joke.

    Unsuitable or offensive? Report this comment

  • Customers will not return to your store without this facility especially in areas of social need, for electric top ups ,gas etc etc.Paypoint need taken to task by the utility companies etc who use that platform.

    Unsuitable or offensive? Report this comment

  • The utility companies use Paypoint because it is the cheapest option. It is the cheapest option because retailers process payments for less than cost. As long as retailers are prepared to do this the utility companies will be happy. Don't expect them to take Paypoint to task anytime soon.

    Unsuitable or offensive? Report this comment

  • I sent my letter in to give up my PP terminal . reason == we took in 118K last yr , commission = 675 !! the banking cost is higher than income !! not taking account of staff cost . if retailers did their profit analysis than they will dump their PP . to date I had kept it as loss making for convenience of my customers . but this £ 10 bill was the stick that broke camel's back

    Unsuitable or offensive? Report this comment

  • It's intetesting that Paypoint don't seem to have supplier support for their Paypoint one terminal. What use is an Epos system without electronic delivery notes or price files if you run a medium to large store? Most Epos companies have built up supplier support over years of hard work and negotiation. I think Paypoint just expected retailers and suppliers to support their new venture without giving a thought to the fact some might dare to say No! Paypoint One is a glorified Till with no essential features in my opinion.

    Unsuitable or offensive? Report this comment

Have your say

These comments have not been moderated.

You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment.

Any comment that violates these terms may be removed in its entirety as we do not edit comments.

If you wish to complain about a comment please use the “report this comment” facility or email groceremails@wrbm.com

Mandatory
Mandatory
Mandatory
Mandatory

Related images

  • Terminal 2
  • Print
  • Share
  • Comments (5)
  • Save
Sign in

Newsletter Sign-up

I wish to receive the following newsletters:

FOLLOW US