Lloyds Banking Group PLC will become the main card acquiring partner for PayPoint PLC under a deal announced on Wednesday.
Shares in Paypoint rose 1.9% to 491.10 pence in London on Wednesday morning. Lloyds climbed 0.2% to 49.65p.
Paypoint, the Welwyn Garden City, Hertfordshire-based payment services provider, said the expanded partnership would be piloted in the second quarter of the financial year ending March 2025, with a full launch expected in the third quarter.
Paypoint said the agreement will offer merchants a ‘market-leading’ banking and card services proposition combining card payments, a 12-month fee-free Lloyds bank business account and a connected commercial card offering.
Paypoint said the deal would strengthen its market position and accelerate growth across its merchant estates.
For its part, Lloyds, the Edinburgh-based financial services firm, will provide ‘significant investment’ into the Lloyds Bank Cardnet business to enhance product development and data analytics for merchants.
Paypoint Chief Executive Nick Wiles said: ‘The expansion of our long-standing relationship with Lloyds Bank Cardnet Merchant Services has been a key strategic decision for our business and one that we believe will deliver major benefits to our SME and retailer partners.’
‘Good execution of this partnership extension is another key element to the delivery of our overall business ambitions and our immediate target of delivering £100 million [earnings before interest, tax, depreciation and amortisation] by the end of [financial 2026].’
Melinda Roylett, managing director, Lloyds Bank Merchant Services said the partnership with PayPoint is ‘incredibly important for our next stage of growth and leveraging the significant investment we are making in the Lloyds Bank Cardnet Merchant Services business.’
In February, Paypoint struck a multi-year deal with International Distributions Services PLC’s Royal Mail.
‘The multi-year agreement will enable parcel drop off for Royal Mail customers at 5,000 Collect+ stores in communities across the UK by the summer. The partnership will provide Royal Mail customers with access to a range of services via PayPoint‘s retailer partners,’ PayPoint said.
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