The Post Office is set to acquire Payzone’s bill payments transaction business, subject to approval by the Competition and Markets Authority (CMA).

The deal would mean the Post Office taking over an additional network of some 13,000 payment outlets, along with Payzone’s bill payment technology.

The acquisition, which is expected to be completed this year, represents “another milestone in the Post Office’s continued modernisation”, ensuring that people across the UK have easy access to vital services, the organisation said.

Post Office retail chief executive Debbie Smith said: “Bill payments has always been a core part of our business, allowing customers to pay a wide range of bills, including phone, gas and electricity in their local Post Office. We operate in fast-paced, commercial markets and this acquisition will give us the opportunity and improved ability to compete for more, and bigger, bill payments contracts.

“Over 500 million bill payment transactions are undertaken across the UK each year. We intend to grow our business and drive footfall to both Post Office branches and Payzone outlets by offering current and potential clients a network of nearly 25,000 outlets where customers can pay their bills.”

Payzone ceo Clive Kahn said: “Payzone is delighted that the Post Office will be the new owner of our bill payments business.

“Our Payzone outlets will complement and strengthen the Post Office’s existing branch network meaning customers will have more access to a wider range of over-the-counter bill payment services.”