A leading independent retailer has criticised PayPoint's commission structure after the payments and services provider reported a rise in annual profits, arguing that retailers are not receiving a fair share of the value generated through the network.
PayPoint Group reported underlying profit before tax of £69 million for the year ended 31 March 2026, up £1 million from the previous year, according to its latest financial results.
Reacting to the figures, Dartford retailer Nishi Patel voiced frustration over what he described as insufficient commissions for retailers despite the company's profitability.
"Absolutely shocking!
"How Paypoint can make so much profit?! But retailers are losing on a monthly basis from their charges and lack of commissions how is that even possible? The people that actually make their money lose money on their product."
Retailer Nishi Patel
From April 1, retailers using PayPoint saw their monthly fees rise by 3.8 per cent, in line with the Retail Price Index (RPI).
The comments reflect a long-running concern among some convenience retailers about the level of remuneration available for services offered through in-store payment terminals, particularly as operating costs continue to rise.
PayPoint's retail network grew to 30,872 sites during the year, compared with 30,712 a year earlier, with 70 per cent of locations operated by independent retailers and 30 per cent by multiple retail groups.
Within the group's Shopping division, net revenue increased by 1.7 per cent to £66.3 million, while card payment net revenue declined by 2.5 per cent to £31.6 million.
The company also reported progress in merchant services, including a partnership with FreedomPay launched in December 2025, which has already added around 1,000 live terminals to the estate.
However, total card processed value fell by 6.2 per cent to £6.4 billion, down from £6.9 billion in the previous year. Processed value across the Handepay EVO estate declined by 4.6 per cent, while the PayPoint Lloyds Cardnet estate was down 9.6 per cent year-on-year.
Commenting on the results, PayPoint chief executive Nick Wiles said the company had reset its Merchant Services strategy in response to increased competition within the card processing market.
"The reset of our strategy in Merchant Services reflects the need to adapt and respond to the changes in a highly competitive card processing market, with a focus on net revenue, improved profitability and a merchant estate managed for value rather than a focus on estate growth," Wiles said.