PayPoint.net boosts revenues and announces Home Delivery Network deal

PayPoint.net has announced growth in revenue, profits, transaction volumes and consumer spend during 2008-09.

PayPoint.net has announced growth in revenue, profits, transaction volumes and consumer spend during 2008-09.

The business reported revenues of £8m during the year ending 29 March 2009, a 63% increase over the previous financial year, while transaction volumes increased by 40% and online spending increased by 36%.

Highlights of the past year include:

· The launch of the PayPoint.net brand following the integration of SecPay and Metacharge

· Over 350 new merchants secured, including Severn Trent Water and Uniqlo

· Partnership with PayPal, which will enable all PayPoint.net merchants to offer PayPal as a payment option alongside other payment types. PayPal is the UK’s most popular means for online payments after Visa and MasterCard

· The launch of PayCash, a service enabling shoppers to pay in cash for the goods they buy online, at any of the 21,500 PayPoint retailers across the UK. According to a PayPoint.net survey, one in five UK consumers is now a ‘cash consumer’ – more likely to pay for their shopping using cash than a credit or debit card

· Extensive upgrades to PayPoint.net’s fraud management platform for gaming providers, enabling them to set sophisticated fraud detection rules. The new capabilities allow gaming providers to set up operations in new markets whilst keeping risks firmly under control.

PayPoint.net announced its growth figures as parent company PayPoint plc issued its full year results for the year to 29 March 2009. PayPoint said that during the financial year, it processed 545m transactions (2008: 503 million), an increase of 8% (10% on a like-for-like basis, adjusting for a 52 week year compared to 53 weeks in 2007/08), with a value of £8.9bn (2008: £7.5bn), up 18%, and driving revenue of £224m (2008: £212m). Profit before tax was £35m, an increase of 19%.

PayPoint also announced the launch of Collect+, its joint venture with Home Delivery Network to provide consumers – particularly online shoppers – with a more convenient solution for the delivery and collection of their purchases.

Collect+ leverages PayPoint’s retail network of agents as parcel drop-off and collection points and at the end of March 2009, there were 1,250 sites within PayPoint’s existing retailer base offering Collect+. It plans to have around 4,000 sites live by the end of this year. PayPoint.net will be able to offer Collect+ as part of its overall proposition to its clients.

Michael Norton, managing director of PayPoint.net, commented: “The online commerce sector continues to show encouraging growth, despite the economic slowdown. This trend is playing itself out in our financial performance. Not only are we seeing continued momentum in new merchant sign-ups, the successful amalgamation of Metacharge and SecPay under the PayPoint.net brand is also proving a sound basis for cross-selling and up-selling to existing customers.

“We are continuing to develop our core technology, and develop acquirer and partner relationships so we can continue to offer the industry’s most comprehensive, sophisticated and competitive payment solution to all of our target markets.”