One of PayPoint’s top retailers has ripped out his terminal, switching to the Post Office to enable customers to pay bills.
Dissatisfied with high bank charges and margins, Ushi Vithani, owner and manager of The Front Page, a CTN store in Thamesmead, south London, carried out the threat he made earlier this year to ditch the service (The Grocer, May 7, p4).
He claimed that banking cash from transactions with the Post Office had slashed £200 off his bank charges in the first month since leaving PayPoint. He estimated the move would save his business £2,400 annually, despite little difference in the margins offered by the Post Office on transactions.
Vithani, who twice won PayPoint’s monthly top performer award, claimed he could also now process more transactions, because PayPoint payments had to be made through one of its terminals and shop tills. By contrast, business could be processed directly through Post Office tills. “My mobile top-up business has risen 30%, because I can do more business in one go,” said Vithani. He claimed payment errors were harder to correct under PayPoint.
A PayPoint spokesman said: “It would be inappropriate to comment on the products and services of our competitor, the Post Office, based on the perceptions of one ex-agent out of PayPoint's national network of more than 14,000.”
Another critical customer of Paypoint, The Grocer Top 50 independent off-licence chain Wineflair, said it was reviewing the benefits of the terminals for its stores and has threatened to scrap them before the year end.
Sainsbury is to end its IT outsourcing deal with Accenture after long-running problems. In October last year, it said it would renegotiate the £1.8bn contract, but now services are to transfer back in-house.

Culture secretary Tessa Jowell has announced the Licensing Act will come into force on November 24 despite moves by the Liberal Democrats and Conservative Party to delay it.

Somerfield has withdrawn its appeal against Competition Commission findings that stores in 12 locations must be sold to satisfy competition concerns. It said its proposed 197p per share acquisition by Violet Acquisitions had influenced the decision.

West Bromwich-based Global Cash & Carry is to open a new 17,000 sq ft depot next month to expand its alcohol, soft drinks and snacks operation. Its turnover was £8m last financial year and it is on target for £10m this year.

Food redistribution charity FareShare is hoping to give 16,000 disadvantaged people a Christmas to remember by providing them with festive food hampers. The charity is looking for retailers or suppliers to help. For details call 020 7394 2467.

The Today’s Group has recorded better than expected third-quarter trading figures, not Nisa-Today’s as stated in last week’s issue (The Grocer, October 22, p11).

A service of thanksgiving for Michael Peacock, former chairman of wholesaler Nurdin & Peacock, will be held at Chichester Cathedral at 2pm on Friday, November 18.
Rod Addy
it deal ends
Licensing date set
Appeal withdrawn
New Global depot
Christmas appeal
Today’s - Not NISa
Peacock memorial