PayPoint has outlined proposals to roll out cash deposit and withdrawal machines across its estate, as it revealed plans to become a “community banking network”.
At the end of last year, the Financial Conduct Authority (FCA) launched a consultation on a new regulatory regime that would require banks and building societies to assess and address gaps, or potential gaps, in cash access provision in local communities.
Speaking to Better Retailing this month, PayPoint chief executive Nick Wiles said there “is a real opportunity to create a community cash banking network”, for which he believes the company is “the best prospect”. He confirmed PayPoint would roll out automatic deposit and withdrawal machines into partnered stores.
Read more PayPoint news
The move would build upon an existing service providing consumer deposits for neobanks such as Monzo, which saw £430m deposited in the past year. Although PayPoint has approximately 3,600 ATMs across its network already, they only process cash withdrawals and balance enquiries.
“The FCA is encouraging an alternative network,” said Wiles. “We are having live conversations with banks. We would look at installing automatic deposit-and-withdrawal machines across partnered stores, and to have 2,000 deployed over the next 12 months.”
Competition
Under proposals by the FCA, designated companies will be required to undertake cash-access assessments; respond to requests from local residents; deliver additional cash services to fill gaps; and ensure they do not close cash facilities. Although this move would see PayPoint offer competing services to the Post Office (PO), Wiles said the company “isn’t trying to put PO out of business”, and if there is to be an alternative network, then “the convenience sector is a ready-made one”.
Wiles added: “We are now going to compete for every government contract that comes up for renewal. When the contract with the DVLA came up, we thought we were well placed to deliver a better service for the same price.”
The move comes in the same week Amazon confirmed it would cease returns through PayPoint’s Collect+ network from 21 April.
Speaking to Better Retailing, a spokesperson for PayPoint said the news would affect 2,000 retailers in the broader Collect+ network of 11,500. However, all of those will retain the Amazon Click & Collect option.
“We processed almost 10 times as many Amazon Click & Collect parcels last year compared with Amazon returns,” said the spokesperson.
Read 26 April edition of RN for the full interview with PayPoint chief executive Nick Wiles.
Comments
This article doesn't have any comments yet, be the first!