Following representations by the Fed (Federation of Independent Retailers), PayPoint has confirmed that from April 1 2023 it is to put up its service fee charge - but the rise will be capped at 7 per cent rather than the whopping 13.4 per cent rise confirmed by the Office for National Statistics on February 15 2023.
Letters and emails are being sent to PayPoint retailers this week to advise of the increase.
The service provider reviews its service fee charge each year in line with the retail price index (RPI). Initially, the company was planning to increase the charge by 13.4 per cent this year – the RPI at the time of its review.
However, following a meeting with senior officials from the Fed last month, PayPoint has listened to the concerns of independent retailers and has now agreed to almost halve the level of the inflationary increase on the service fee charge to 7 per cent, repeating what it did last year.
Commenting, Fed National President Jason Birks said: “Everyone is operating in an increasing challenging environment with costs rising on a daily basis and this is threatening the very survival of smaller stores and their communities. A 13.4 per cent increase to PayPoint’s service fee charge would have made our lives so much harder.
“At every meeting with PayPoint we lay bare the challenges facing independent retailers and while we are disappointed that its service fee is to rise, we are grateful that PayPoint executives have listened to the Fed’s concerns and the company is, at least, absorbing some of the increase.”
To mitigate the effects of the increase, the Fed will continue to work with PayPoint on making members aware of the profit opportunities open to retailers through the service provider’s other initiatives such as PayPoint Counter Cash, My Store + rewards app and Love2 Shop digital vouchers.
According to data that has been shared with the Fed by PayPoint, throughout 2022, over 57 per cent of members taking advantage of these opportunities have grown their income by 4 per cent. In addition, more than 43 per cent of members increased commissions by over 14 per cent year on year. Total commission paid by PayPoint to Fed members has increased by 28 per cent year on year.
All Fed members are also being offered an in store “health check” with PayPoint’s retail relationship managers, so they can fully understand its new services and the profit opportunities they offer.
