PayPoint is set to leave the Irish market come October, although, even with pre-warning retailers and consumers still face uncertainty.
It has been recently announced that PayPoint, the omnichannel payment solution provider, is set to leave the Irish market in October. The real conundrum for it is how will this affect the somewhat 580 retailers and 100,000 customers that use PayPoint facilities every week according to the Irish Times.
The provider, who helps customer in Ireland control their household finances, make essential payments and access in-store services stated in May to retailers that they would be revoking there services throughout Ireland, with further warning of the exodus in July.
The announcement could be considered a shock due to revenue growing by 5.0 percent to £213.5m and costs declining by £1.0 m in the second half of the year. The company announcement in the Financial Times stated that they would be winding down their “small” network of 450 locations throughout Ireland.
The company stated in the announcement that: “In Ireland we have a network of 450 sites. Given our strategic focus on our UK and Romanian operations, we have decided to wind-down the bill payment services in Ireland, which generates c.£0.5m net revenue per annum.”
PayPoint went on to explain they must stay “in line with PayPoint’s Strategic priorities to focus on its UK and Romanian operations, which make up the vast majority of the network”.
Speaking to Ireland’s Forecourt and Convenience Retailer PayPoint commented that it would be a “hard-exit” out of Ireland. This would mean retailers throughout the country will have to find new ways to cope with this as soon as possible.
Whilst many have known about this decision for several months, the lack of information and plea from PayPoint to continue business with customers as usual isn’t the most comforting for Irish clients.
Speaking to the Irish Times PayPoint said they would; “be in touch with further information closer to the time.” This uncertainty has left a few retailers weary of what the future may hold for their current service in the republic of Ireland, given the scale of people using PayPoint services.
The payment company came into recent trouble recently within the UK, with their services failing, leaving 1.4m Brits without gas and electricity and some unable to feed their children.
If the withdrawal from the Irish market is not handled with diligence and care, then events similar to the UK could be on the horizon for retailers in Ireland.