PayPoint Review 2026: In-Store Payments, Bill Collection & Parcel Services

PayPoint is a UK payment services and counter network operating in over 28,000 convenience stores, newsagents, petrol forecourts and supermarkets across the UK. Founded in 1996 and listed on the London Stock Exchange (ticker: PAY), it is not a traditional card machine provider. PayPoint terminals allow retailers to accept bill payments, cash top-ups, parcel drop-offs and collections, and card transactions on behalf of major brands including utility companies, transport operators and government services. Retailers earn commission on each service transaction, making PayPoint a revenue-generating addition to their existing business rather than just a cost. Card processing starts from 1.5% per transaction. Contracts are typically three years. PayPoint Network Ltd is authorised and regulated by the Financial Conduct Authority.

Updated August 2026

Key Facts: PayPoint UK

Who Is This Page For?

This page is written for independent convenience retailers, newsagents, petrol forecourt owners and small supermarket operators considering whether to join the PayPoint network. It covers what PayPoint is, how the terminal works, what fees and commission rates apply, and how to weigh up a three-year contract commitment. If you already have PayPoint and want to compare card processing rates with standalone providers, this page covers that too.

PayPoint is not suitable for pure ecommerce businesses, mobile traders or any business that only needs straightforward card processing. For those use cases, providers like Square, SumUp or Stripe will be more appropriate.

What Is PayPoint?

PayPoint is a UK payment services network that places counter terminals in independent retail locations, allowing customers to pay bills, top up prepayment meters, collect parcels and make card payments all from one device. PayPoint means a branded terminal and service agreement giving retailers access to a network of utility companies, government bodies, courier firms and other service providers. The retailer earns commission for processing each of those third-party transactions. PayPoint itself earns fees from the service companies whose bills and top-ups flow through its network.

PayPoint was founded in 1996 and has operated in the UK for nearly 30 years. It is publicly listed on the London Stock Exchange under the ticker PAY. The PayPoint One terminal is the current counter device deployed across the network.

What Is PayPoint Used For?

PayPoint terminals are used by both consumers and the retailers hosting them. Consumers use PayPoint locations to pay gas, electricity and water bills, top up prepayment energy meters, send and collect parcels, and top up prepay mobile phones. Retailers use the same terminal to process their own customer card payments alongside all those third-party services. The PayPoint One terminal handles chip and PIN, contactless and mobile payments.

PayPoint Services

• Bill payment collection: PayPoint retailers accept payments for gas, electricity, water, council tax, TV licence and more. Customers pay cash or card; the retailer earns a small commission per transaction from the billing company.
• Prepayment meter top-ups: Energy companies including British Gas, E.ON and EDF use PayPoint for prepayment key and card top-ups. This drives regular repeat footfall from customers who top up weekly.
• Parcel services (PayPoint collection and drop-off): PayPoint locations act as drop-off and collection points for DPD, Evri, Amazon Returns and other parcel networks. Commission is earned per parcel handled. Parcel customers frequently make additional in-store purchases, lifting basket spend beyond the parcel fee itself.
• Mobile top-ups: Prepay mobile top-ups for major UK networks. A declining but still relevant service for retailers with an older or less digitally engaged customer base.
• Card payment processing: The PayPoint One terminal includes integrated chip and PIN and contactless card acceptance. Retailers can take their own customer card payments at the same terminal used for all other services.
• ATM services: Where footfall and space allow, PayPoint can install an ATM at the retailer's location under a revenue-share arrangement.
• Transport services: Rail and coach ticket collection at selected PayPoint locations, depending on operator partnerships in the retailer's area.

PayPoint Fees and Charges: What Does PayPoint Charge?

PayPoint's pricing model is fundamentally different from standard card machine providers. The PayPoint One terminal is provided to retailers at no upfront hardware cost. There is no fixed monthly service fee in the traditional sense. Instead, PayPoint earns revenue from the service companies whose bills and top-ups are processed through the network. Retailers earn commission back from those same transactions. The question of whether PayPoint charges a fee depends on which service you are looking at.

The net cost or benefit of a PayPoint terminal depends entirely on transaction volume. A busy newsagent handling 200 bill payments and 50 parcel collections per week could earn £15–£20 per week in commission alone, offsetting part of the cost of card processing. A quieter location may find the 1.5% card rate is less competitive than a dedicated provider. Square charges 1.75% per in-person transaction with no contract. SumUp charges 1.69%. For higher-volume businesses, a traditional merchant account from Worldpay or Dojo can push rates well below 1%.

PayPoint Commission Rates: What Do Retailers Earn?

PayPoint commission rates are the amounts retailers receive for processing third-party transactions through the terminal. Bill payment commissions are set by each service provider and typically range from 1p to 3p per transaction. Parcel handling commissions vary by courier partner but typically fall between 20p and 25p per parcel, following industry-wide rate cuts in September 2025. Commission rates for prepayment meter top-ups are set by the energy companies and have declined over the past decade as more customers switch to online top-up channels.

PayPoint does not publicly publish a single fixed commission schedule because rates are set individually by each service provider in its network. Retailers applying to join PayPoint will receive commission details as part of their contract documentation. A retailer processing 300 bill payments per week at an average of 2p commission earns around £6 per week, or roughly £312 per year, from that service alone. Add 60 parcel collections per week at 22p each and that rises to around £19 per week in total service commission, or approximately £988 per year.

How Does PayPoint Work for Retailers?

PayPoint works by placing a PayPoint One counter terminal in the retailer's shop under a service agreement. The terminal connects to PayPoint's central system and recognises barcodes and payment references from utility bills, parcel labels and top-up cards. When a customer presents a bill or parcel, the retailer scans it, takes payment in cash or card, and the transaction is processed through the PayPoint network to the relevant service provider. The retailer's commission is calculated automatically and paid out on a regular settlement cycle.

Card payments for the retailer's own stock and services are processed through the same terminal using the integrated merchant acquiring function. These transactions settle to the retailer's bank account on the next business day.

How Long Does a PayPoint Payment Take to Clear?

For card payments processed through the PayPoint terminal for the retailer's own sales, funds typically reach the retailer's bank account on the next business day. Commission earnings from bill payments and parcel services are paid out by PayPoint on a regular settlement schedule rather than transaction by transaction. The exact settlement frequency for commission payments is confirmed in the retailer's service agreement. Bill payments made by consumers to utility companies clear to those companies directly through the PayPoint network; from the consumer's perspective, the payment registers on their account typically within one to two business days.

How to Get PayPoint in Your Shop

To get PayPoint in your shop, you apply directly through PayPoint's retailer recruitment process. PayPoint assesses applications based on location, store type, opening hours and nearby PayPoint density. Not every application is accepted. PayPoint aims to avoid placing terminals too close together, so retailers in areas already well served by existing PayPoint locations may not be approved.

If accepted, PayPoint installs the PayPoint One terminal and activates your chosen services. The retailer agreement is typically a three-year contract. Read the exit clauses carefully before signing, as early termination fees may apply.

PayPoint vs Payzone

PayPoint and Payzone are the two main counter payment networks for UK convenience retailers. Both place terminals in independent shops and pay retailers commission for processing bill payments and top-ups. The table below summarises the key differences.

PayPoint has a larger UK network and broader brand recognition among consumers. Payzone has a smaller footprint but may be available in areas where PayPoint has reached its location density limits. Both networks are worth comparing if you are deciding which to apply for. See our Payzone review for a full breakdown.

Pros and Cons of PayPoint

Pros

• Additional revenue streams: Bill payment commissions and parcel fees can generate several hundred pounds per month for busy convenience retailers, offsetting or exceeding the cost of card processing.
• No upfront hardware cost: The PayPoint One terminal is provided without purchase cost, unlike many card machine providers where hardware is bought outright or leased monthly.
• Drives footfall: PayPoint's brand recognition means customers actively seek out PayPoint locations to pay bills and collect parcels, driving footfall that benefits the wider shop.
• All-in-one counter terminal: One device handles card payments, bill collection, top-ups and parcel scanning, which is simpler than running multiple separate systems.
• Established, trusted brand: PayPoint has operated in the UK for nearly 30 years and is recognised by consumers as a reliable place to pay bills and collect parcels.
• FCA regulated: PayPoint Network Ltd is authorised and regulated by the Financial Conduct Authority, providing regulatory oversight for payment services.

Cons

• Three-year contract: PayPoint typically requires a three-year commitment, significantly longer than card machine providers like Square or SumUp which operate on a no-contract basis.
• Card rates not always competitive: The integrated card processing rate of 1.5% may be higher than achievable with a dedicated card machine provider at higher monthly volumes. Dojo, for example, offers rates from around 0.9% for established businesses.
• Retail-only focus: PayPoint is not designed for ecommerce, mobile businesses or service-based businesses without a physical retail counter.
• Commission rates declining: Bill payment commissions have reduced over the years as consumers increasingly pay bills digitally. Revenue from this stream is lower than it was a decade ago, and the trend continues.
• Exit fees may apply: Leaving a PayPoint contract early can attract termination charges. Always check the contract terms carefully before signing.
• Not available everywhere: PayPoint controls terminal density by location. Retailers in areas already well served by PayPoint may not be approved.

Is PayPoint Right for Your Business?

PayPoint makes strong sense for independent convenience stores, newsagents and petrol forecourts in residential areas with an established customer base for bill payments, parcel collections and top-ups. The commission revenue and footfall benefit are genuine and can make the terminal net-positive even after accounting for card processing costs.

If you primarily need a card machine for your own sales without the broader service network, you will likely get a better processing rate and more flexibility from a dedicated provider. Square charges 1.75% per in-person transaction with no contract. SumUp charges 1.69% with no monthly fee. For higher volumes, a traditional merchant account from Worldpay or Dojo will offer negotiated rates that can fall well below 1%.

The key question is whether your location and customer base justify the three-year commitment. Strong community footfall and a regular bill-paying customer base make PayPoint worth considering. Lower-footfall locations or businesses that mostly need card processing should explore alternatives before committing to a long contract. Read our guide on early termination fees in merchant contracts before signing anything.