PayPoint has reported record annual profits and outlined plans to strengthen support for its network of more than 30,000 convenience stores as it embarks on a major business reorganisation aimed at accelerating growth.
For the year ended 31 March 2026, the payments and services provider posted underlying pre-tax profits of £69 million, up 1.5 per cent from £68m the previous year, while underlying EBITDA increased 2.2 per cent to £92m. Revenue rose 8.5 per cent to £337m and net revenue increased 1.7 per cent to £190.8m.
“We are reporting a year of record profits and enhanced shareholder returns delivered against the background of a generally weak economy, low consumer confidence and some specific business headwinds faced through the course of the year,” chief executive Nick Wiles said.
He highlighted growth in Open Banking, digital payments, business lending and housing-sector contracts, alongside progress in three key initiatives: PayPoint BankLocal, the partnership with Royal Mail and the expansion of Love2shop gift cards.
For convenience retailers, PayPoint's retail services business delivered mixed results. Shopping division net revenue rose 1.7 per cent to £66.3m, supported by an 8.7 per cent increase in service fee revenue to £23.7m. The company ended the year with 30,872 retail locations in its network, including more than 20,000 PayPoint One and Mini sites.
The company said its strategic partnership with Royal Mail continued to gain momentum, with 8,500 stores now offering Royal Mail services and carrying Royal Mail Shop branding. More than 3,000 locations are providing over-the-counter postage services, with self-service kiosks set to be piloted during FY27. Parcel volumes through the Collect+ network increased 1.5 per cent to 135.4 million transactions.
PayPoint also highlighted the rollout of its BankLocal service, which enables customers of Lloyds Banking Group brands to deposit cash through local stores. Since launching in August 2025, the service has processed more than £47m in deposits, with Nationwide joining the scheme in April 2026. Plans are in place to expand card-based cash deposit services from 3,000 to 10,000 locations during the current financial year.
Meanwhile, Love2shop physical gift cards are now available in more than 8,000 stores following the expansion of the company's partnership with InComm Payments. In-store gift card billings increased to £13.5m from £3.8m a year earlier.
Earlier this year, PayPoint said it is reorganising the business into four divisions: Network Services, Digital Payments & Open Banking, Love2shop and Merchant Services. As part of the changes, the company plans to introduce a regional operating model designed to improve support for retailers and increase adoption of services across its store network.
“Network Services will move to a unified operating model organised across four regions, enabling better support to our UK wide network of over 30,000 convenience stores, and underpinning a ‘growing retailer value’ strategy from better supporting the delivery and adoption of our key products and services into the network and a fundamental reset of our engagement and relationship with our retailer partners,” Wiles said.
He added that trading had started positively in the new financial year, with the board expecting profits to exceed FY26 levels and remain in line with market expectations.