PayPoint results dented by services slow down

PayPoint’s net revenues dropped £700,000 in the last three months due reduced parcel and service volumes in the UK.

The company highlighted the Department for Work and Pensions ending its Simple Payment Service Partnership and click and collect volumes through Yodel declining by 17.1% for the revenue fall. Combined with lower commissions negotiated with Yodel last year, PayPoint estimated these factors led to a revenue drop of £1.4m in the last three months.

In response, PayPoint announced a new partnership with eBay which it said will “drive higher parcel volumes”. It also added several new services through challenger bank Tide, helping total MultiPay volumes across the period increase by nearly two thirds.

While the company is signing up approximately 260 stores per month to its new PayPoint One and PayPoint One Pro EPoS systems, its overall network count is shrinking by 24 sites per month. This comes as part of the planned phase out of its yellow T1 terminals by December 2019.

Commenting on the network change, CEO Dominic Taylor said: “We also continue to make good progress in embedding PayPoint at the heart of convenience retail.”

The company’s card payment and ATM transactions both increased, by 13.8% and 4.5% respectively. It said this was due to the government ban on card surcharges. However, much of the benefit from the government’s action was wiped out by the average card transaction value dropping from £14 to £13.