PayPoint has written an open letter to retailers amid controversy surrounding its decision to reduce caps on commission.
The letter reads as follows: “Having listened to numerous retailers in recent weeks, we would like to clarify a few things for all PayPoint stores that deliver a vital service to consumers across 28,000 locations in the UK:
- We pay the same commission rates to independents as we do to large retailers, such as Asda, Sainsbury’s and Tesco, and pay over £60m to our retailer partners each year
- 75% of transactions are unaffected by the recent changes
- The 7p cap for certain transactions is higher than the caps used by our competitors, and is set above the average transaction value across our network
- A preferential cash banking deal with Barclays remains available for all of our retailers to take advantage of
- PayPoint shoppers spend over 20% more and visit their local store 20% more often than the convenience average according to leading independent research (CTP 2015)
- We are committed to improving how we do business with you, and continue to invest significant amounts in technology and support teams
- We welcome the opportunity to talk to our retailers and our field teams are happy to meet and discuss with you any questions you may have
“We fully understand that our retailers are operating in an incredibly competitive market and we remain committed to helping you capitalise on the valuable footfall that we drive into your store.
Looking ahead, the future for PayPoint retailers is bright – our continued investment in cutting edge technology and innovative services will drive more opportunities, better value and brand new customers into your store. We look forward to working together with you now and in the future.”