Quarterly growth for PayPoint

PayPoint One terminal

PayPoint has released a trading update for the three months ended June 30, 2017.

Over this period, the group’s net revenue grew 4.2% from £27.3m to £28.4, with UK retail services net revenue increasing by 10.5%.

UK parcel volumes grew by 16.6% to 6.1 million over the quarter, while PayPoint’s Romanian operation recorded net revenue growth of 16.1%.

The double-digit growth in retail services was ascribed to PayPoint One service fees, card payment transactions (up 8.3% to 24.1 million) and ATM transactions (up 5.0% to 10.2 million).

The PayPoint One terminal is now in operation in 5,000 sites, an increase of 1,296 since the beginning of the financial year. PayPoint says it remains on target to reach 8,000 sites by March 31 next year.

The retailer network shrunk by 449 during the first quarter to 28,727 outlets. This was put down to the standardisation of service fees across 14,000 legacy terminals following PayPoint One’s introduction.

In line with the growth in parcel volumes, the Collect+ network expanded to 6,521 sites, up by 354 since the beginning of the financial year.

Dominic Taylor, PayPoint’s Chief Executive, commented: “We have continued our repositioning of the business in the new financial year, as we have driven profitable growth in UK retail services, increased parcel volumes and delivered another strong performance in Romania.”