PayPoint boss Dominic Taylor has defended a near £300,000 increase in net revenue bolstered by the cut to retailers’ commission earlier this year.

independent convenience retailThe payment services provider’s half year financial results reveal the company achieved a 1.2% increase in net revenue in bill and general transactions. They were at £26.2m in the six months ending 30 September 2015, up from £25.9m in the same period in 2014. Meanwhile, revenue before costs, including commission, was down 0.7% to £38.5m.

The report states the growth was “helped by changes to our retail terms that we made in response to competitor rates”. It comes after the company told RN in April “PayPoint is now making less while our costs are also increasing,” after announcing it was cutting its commission cap.

Defending the results, chief executive Dominic Taylor, pictured, said: “As I’ve always said, our proposition is not just about commission, it’s about the footfall we drive into stores. It’s about the value of the investment we’re making in the store for them, for their benefit, including the third generation terminal.”

Mr Taylor told RN only three retailers had left the network since May, while retail sites in the UK and Ireland increased by 624 since March.

They’re still saying the same thing –  ‘it’s not all about commission’. It’s not, but we shouldn’t be making a loss

However, Mo Razzaq, of Premier Mo’s in Glasgow, said: “We said from day one it was all about them making money. It’s completely unjustifiable. And they’re still saying the same thing –  ‘it’s not all about commission’. It’s not, but we shouldn’t be making a loss.”

Mr Taylor said a root and branch review “of our whole process” is now underway “in order to be able to step up and do it better” and “to understand our retailers’ concerns better”.

Transactions in the same period were up 1.1% and their value 2.2%. Meanwhile the company’s pre-tax profits were hit due to it writing off £18m from the value of the online payments division.