Wineflair, The Grocer Top 50 retailer, is threatening to sling PayPoint and Payzone terminals out of all its stores due to the “minimal” margins it gets per transaction.
In a letter to The Grocer, Chris McKay, operations director of the Belfast-based off-licence chain, said it had installed PayPoint and Payzone machines in all its 42 stores.
However, he said he was seriously questioning their benefits.
“The level of profit generated from this service is minimal. We are currently reviewing this service.
“In every likelihood, it could be removed from the vast majority of our outlets before the end of this year.”
He said the chain had originally been attracted by the facility to pay for mobile phone top-ups. But he added: “Today only around 10% of our PayPoint and Payzone turnover is related to mobile phone top-ups, and this has caused major problems.”
These included, he said, low commission rates bearing no relation to bank charges, and fraudulent use of terminals by staff. McKay said the queues caused by the machines were deterring other customers.
>>p26 Letters