PayPoint has unveiled what it describes as “positive changes” to its commission structure for SIM cards, increasing commission from phone providers by 50% to £6.
The change, which covers all major phone providers, will be introduced on October 28, with the increased commission going into retailers’ banks from November 10. The greatest rise comes from O2 and EE sim cards, with commission rising from a potential £4 up to £6, as long as the cards are topped up five times.
Retailers welcomed the move, although they did cast doubt on how much of a difference it will make in practical terms. Abdul Qadar, from Ramzan & Sons in Edinburgh, said: “Anything we make more money from is welcome, it’s good news for us. But SIM card sales are on the decline, everyone who wants one has got one, so it’s not going to make a huge difference to us. It won’t make up for the loss we’re making on PayPoint.”
“It won’t make up for the loss we’re making on PayPoint”
– Abdul Qadar, Edinburgh
PayPoint commercial director Lewis Alcraft said: “Our strong relationships with some of the most popular networks like O2, EE, Vodafone and Three ensures retailers can offer great deals to suit their customers’ needs.
“These changes are part of our ongoing commitment to improving how we do business with our retailers and significantly enhances their earning potential.”