Sir, With reference to recent articles on benefits payments, PayPoint consulted many retailers during the bidding process and our proposal was deliberately designed to be sensitive to their needs and concerns over security. The announcement has been met with considerable enthusiasm by our retailers and many others who would like to have PayPoint ('PayPoint completes dream week with government welfare contract', www.thegrocer.co.uk, 3 March).

One complaint expressed about the business going to PayPoint is that sub-post offices will lose footfall. The natural corollary of that is that stores with PayPoint will benefit from additional sales.

The new service will also help to address the issue of banking costs. By enabling them to pay out some of the cash they take via PayPoint, they will be banking less cash and reducing their costs.

Peter Brooker, head of corporate affairs, PayPoint