Paypoint Share Discussion Threads

[uhound] 29/5/2015 15:08

A profit is a profit and 10%+ in two days not a bad return!!

[werty5] 29/5/2015 14:07

Mind made up have sold think headwinds at £10 might be a bit much at the moment if price sinks might look again at £9.00 or of £10 breaks could also be worth another look.

[werty5] 29/5/2015 13:39

Raised my stop-loss up to £9.40 now thought that PAY would have a easyish ride up to £10 once it had cracked £9.00 but there is some heavy resistance at £10 so still making my mind up about cashing in now or letting it run with a £9.40 stop-loss safety net.

[werty5] 29/5/2015 13:32

Yes Uhound and Pic and Eto at the moment could say I have hit a bit of a good patch. Unfortunate that you got out at the wrong moment but we have all done that.

[uhound] 29/5/2015 13:14

That's more like it!

Interesting to see if it can carry on back to £11+. probably will now I'm out!

Werty5 I see your also in on Anite too.

[werty5] 28/5/2015 07:16

That statement was better than I had expected.

[uhound] 27/5/2015 20:09

Will continue to follow and can always re-enter if momentum returns following good news!

[werty5] 27/5/2015 14:06

Good luck Uhound agree was hoping to see a move above £9.00 which would stick but has not happened. However I am sticking it out until tomorrow to see what happens is that right who knows? Good luck with your future investments.

[uhound] 27/5/2015 10:55

I'm out!
Shares just not reacting as I expected and fear disappointing news tomorrow could hit the price hard.

Will take my small profit in move on.

Good luck to those keeping the faith.

[isalolly] 23/5/2015 19:23

The retailers are rebelling in the light of PayPoint's announcement that they're cutting commission rates. They were already low but the planned cut, which could shave about £7M off PayPoints costs, means that virtually all retailers will be making a loss on all PayPoint transactions.

Essentially the retailer takes cash in respect of utility bill payments, banks the cash & Paypoint then debit it from the retailers account to pay the utility. The charges that the banks make on the cash handling for the retailer exceed the commission that Paypoint pays to the retailer.

The outgoing Goddard made an extraodinary comment to "The Grocer" this week considering that the annual results are due out next Thursday. He said "What we are doing here is a response to commercial pressure we are under."

To me that implies that the profit & margins are under threat and doesn't bode well for the future. The retailers have got their gander up & if PayPoint report either improved profits or an increased dividend now in the light of what Goddard has just said they're likely to leave in their droves.

PayPoint has 28,000 outlets, half of them independent retailers, it's in trouble without their backing.

So good results & increased dividend, they're in trouble. Poor results & they're still in trouble. Either way, it doesn't look good. I'm afraid making your decisions based on charts and trends isn't much use when this sort of news is around. Best to stay clear until the dust settles. If it does.

[jusmasel99] 20/5/2015 06:55

Was this information not worthy of an RNS?

business
Following the unprecedented backlash over retailer commission, under pressure PayPoint has announced that UK managing director Seamus Smith and retail director Andrew Goddard are to leave the business.

Staff at the company’s Welwyn offices were told of the move following a board-level discussion last week. Retail Express understands that neither role is being replaced.

The decision to part ways with more senior figures follows the hushed announcement last week that chairman Warren Tucker has also left the business.

[jusmasel99] 20/5/2015 06:29

INteresting article from the NFRN .....

#PayPointPayFair

This is a familiar saying to describe how it feels to be caught in a desperate situation from which there is no obvious escape.

Across the UK, thousands of retailers, believing PayPoint’s hype have been convinced to take on terminals for payment and collection services on the promise that, despite low commissions, the additional footfall that terminals would drive would be healthy for their business prospects.

Small newsagents, already imbued with the tradition of facilitating services to their local communities, and seeking to find new sources of revenue to make up for long-term declining news sales, jumped at the chance.

But what has been the reality?

According to evidence gathered from Federation members, the claims that PayPoint terminals drive extra footfall appear to have been greatly exaggerated. In percentage terms only a small minority of customers making PayPoint transactions make additional purchases at the same time. Certainly, the profit generated from additional purchases generates nowhere near the additional revenue needed to compensate for PayPoint’s loss making service. This is what retailers are telling us.

Let us also look at some of the aspects of PayPoint’s terms and conditions of business:

Minimum Transaction Clause

Retailers have to commit to a minimum number of transactions through their PayPoint terminal. Failure to achieve this means they have to pay £25 per month plus VAT as a penalty. This might not sound a fortune but over the life of a 5 year contract this could be substantial. What happens if there is a significant change in the local market, e.g. if a major employer closes down and there is a major shift in population? Will PayPoint withhold it surcharge if the minimum transaction target becomes impossible at no fault to the retailer?

Exclusivity Clauses

Within the terms and conditions of business retailers have to agree to abide by PayPoint’s exclusivity clauses that prevent them from operating alternative over the counter payment and collection services. Not only does this restrict the services that the retailer has to offer, but it also restricts choice for consumers. According to Competition Law, competitive constraints like this can only justified if they are indispensible. But, is this the case or is PayPoint merely using its already dominant position to grab more and more market share? The NFRN is making a submission to the Payments Services Regulator in which it is seeking an investigation of this behaviour.

Early Termination Penalties

Having persuaded retailers to sign new 5-year contracts, PayPoint has subsequently reduced retailers’ commission caps twice this year. These swingeing reductions now put most retailers in a loss making situation, even when just compared with the National Minimum Wage that must lawfully be paid to staff. Add to this other operating costs and punitive bank charges for banking the cash collected on PayPoint’s behalf (yes this is PayPoint’s money and not the retailer’s, so why is the retailer having to pay PayPoint’s bank charges for them?) and it is not hard to see that retailers’ losses can be considerable, and, over time potentially commercially fatal.

So faced with these damaging, loss making contracts, retailers are being forced to dust off their terms and conditions of business to see how they can get out of this market. They then find that to exit from their PayPoint contract they must pay a penalty of £500 + VAT PLUS £25 per month + VAT for every month that the contract has left to run. And given that PayPoint’s new contract was only issued in September 2014, the cost to exit is likely to be prohibitive.

Between a Rock and a Hard Place? You bet it is!

The NFRN expects that every one of its PayPoint members will be thanking their lucky stars that they joined the Federation. No one else is fighting their corner for them.

For more information, including details on how to get involved, visit our NFRN PayPoint Campaign page.

Many NFRN members have taken to Twitter to make clear their disgust at PayPoint’s plans. Comments can be viewed at #PayPointPayFair.

[werty5] 19/5/2015 22:06

Not gonna hold my breath because this share does swing about quite wildly but the price at last seems to be making tracks into 900 territory the resistance between here and 10.00 seems quite light but might be some at 925. Results are due in 10 days time and there might be a little surge in the price towards that date. Hope 900 becomes support now but the way the price swings I doubt it.

[werty5] 13/5/2015 18:17

First time the price has finished above 900 for the day for a few months let's hope it holds this time.

[werty5] 08/5/2015 19:39

Disappointing end to the day. Still there is always next week.

[werty5] 08/5/2015 09:36

What a difference a couple of days make. If it holds today time to push up my stop loss.

[uhound] 07/5/2015 20:14

I agree, maybe a push by the MM to get stock before results later this month.

I'll probably hold on until then and see where we are at.

[werty5] 07/5/2015 19:52

Looks to me if the market makers are taking advantage of the political situation to do a spot of stop loss fishing. Good to see that the price has retraced all of yesterday's loss with nice volume too. Still hopeful of a breakout beyond 9.00 which will last but price does seem volatile at the moment.

[santar] 07/5/2015 16:52

Crazy swings. Speculation around the election? But can't see why it should impact Paypoint.

[werty5] 07/5/2015 08:27

Nice bounce back. Stop loss fishing by mm's? Real acid test is can it hold the 8.20 line today.

[werty5] 06/5/2015 23:55

Rns not due.

[leeson31] 06/5/2015 19:08

My cynical side thinks a negative rns tmrw...

[werty5] 06/5/2015 16:37

Shame but resistance well broken if a rebound is not evident tomorrow morning I am going to bail. Poop

[werty5] 06/5/2015 16:33

Crunch ouch not sure why but that is a huge dip.

[werty5] 01/5/2015 08:37

Could be tree shake we shall see