PayPoint Puts pressure on the payments world
PayPoint, best known for it’s integration with pay as you go electricity meters, mobile top up points, PayByPhone parking system, and online payments infrastructure PayPoint.net, has decided that it’s time for a change. It’s not the most conservative of changes either. It’s a change to the very fundamental core of its business, shifting into a position that marries the fluidity that some of the best payment startups have, except marrying it with nearly 20 years of experience from being in the payments space, and the right to the highest level of PCI DSS compliance.
The new business, known as PayPoint Mobile and Online comes from the formation of PayPoint, PayByPhone and PayPoint.net businesses joining together and placing mobile platforms at the forefront of its business.
The idea behind this change comes from a desire to actually cater to the needs of consumers, while providing businesses with an immensely flexible solution that’s easily implemented and scalable. PayPoint has a desire to become the leader of multi-channel payments. If a customer decides to pay with cash, that’s all well and good, but sometimes people might want to use a payment method that suits them better for a particular situation. PayPoint want to be there to help make that a far easier process than it currently seems to be.
While that’s the goal of many newer names in the payments space, PayPoint has the clout of a 36,000-strong retail network in the UK that it can roll its services out onto already – giving those stores an even bigger selling point to its customers. According to PayPoint’s head of corporate affairs, Peter Brooker, 60 per cent of people who make use of PayPoint’s Collect+ service go to their local shop for the first time ever to get the parcel, and of those, 50 per cent purchase an item too. Implementing a flexible payment system into these stores would surely only increase sales for these merchants.
PayPoint may have made most of it’s recent brand growth through its PayByPhone service for paying for parking, but it’s branching out far beyond that and into the realms of what PayPal should really be thinking of doing if it wants to stay relevant.
The first new feature that PayPoint Mobile and Online will be rolling out is the new integrated Smart Metering payments, allowing energy providers to give their customers a seamless choice of paying for their energy bills or pay-as-you-go top-up cards with cash, or via mobile and online channels.
“Customers want to pay by mobile or online with a convenient, simple, seamless experience,” said PayPoint MD Dan Salmons. “As a result, many organisations are suddenly finding they need more sophisticated payment solutions that can keep up with the rapid changes in technology, consumer behaviour and regulation.”
In response to consumer research carried out by the Centre for Economics and Business Research, which showed that consumers are increasingly demanding a choice for how they make payments, Cebr’s managing economist Scott Corfe explained that “organisations can no longer afford to restrict the payment options available to consumers. Our research has found that people of all ages and backgrounds want fast, simple payments, and will vote with their feet when their expectation are not met.”
As Salmon’s summarised rather perfectly, “We believe that we’re a rare thing: a payments company that gets consumers, and a mobile company that gets payments.”