Retailers with PayPoint terminals can now process U Account payments from the alternate banking service’s 50,000 current account holders.

The company said its partnership with PayPoint allows its customers to manage their accounts in 29,000 retail locations, making the service more convenient for its customers.

U Account CEO Alex Letts commented: “It’s about being a help and not a hindrance to people, giving them more options, and more control.”

Lewis Alcraft, commercial director at PayPoint, described U Account as “one of the UK’s leading bank alternatives”.

PayPoint's annual results are due next month and will reveal whether the company has been able to stem the slow down in transactions per year. Last year's results showed the company handled 21 million fewer transactions than the year before.