PayPoint threat to UK Post Office services

Royal Mail, which has been haemorrhaging postal contracts to private sector competitors, faces a fresh challenge to its business with a bid from PayPoint, the payment terminal network, to take over many of the services provided by post offices.

PayPoint, which has taken over the collection of television licence fees from the Post Office, has a bigger network of outlets, which are open longer hours and could process much of the business handled by post offices.