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Financial Services

Paypoint says activity is recovering from low point of April

Card payments performed strongly with June transactions 79% above the prior year

Paypoint PLC (LON:PAY), the payment network operator, said customers making fewer and larger payments during coronavirus (COVID-19) lockdown hit its latest quarter though the business is now recovering.

Revenues dropped by 6.6% to £26.8mln in the three months to end-June 2020, said the FTSE 250-listed company, which included a £1.1mln reduction from the ending of a payment contract with British Gas.

Card payments and services improved during the restrictions period and activity generally has steadily increased year-on-year since April, Paypoint added.

Nick Wiles, Paypoint's chief executive, said it was a solid first-quarter performance in a challenging period.

“As we look ahead there is evidence of recovery in activity across a number of our services from the low point in April.”

Top-ups and eMoney volumes had recovered well, he said, while card payments have performed strongly with June transactions 79% above the prior year.

ATM volumes continue to recover, he added, although this recovery remains dependent on a broader recovery in the economy, while parcel volumes are now close to pre-COVID-19 levels and ahead of the prior year.

Paypoint shares rose 4.6% to 590p.

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