Payment systems operator Paypoint, which operates 24,000 payment terminals in local shops, says declining mobile top-ups have hit revenues. The service can be used to pay TV Licence, electricity or gas bills, as well as purchase top-ups.
Overall transactions for the first quarter increased by 16 per cent to £181m, but the company admitted a shift from pay-as-you-go to contract deals had hit it bottom line, admitting that delines in mobile top-ups had 'partially offset' gains elsewhere, and that 'mobile top-ups continue to be adversely affected by the reduction in the prepaid sector'.
It's worth noting, however, that these losses might not necessarily indicate a shift away from pay-as-you-go subscriptions, as the figures only cover in-store top-ups. With operators all offering over-the-phone automated top-ups, it's possible that subscribers are simply adopting this service.
"Overall trading for the period to 30 June 2012 was in line with market expectations, taking seasonality of trading into account," says Paypoint chief executive Dominic Taylor. "Our established business streams are continuing to generate satisfactory growth this year. The momentum in our developing businesses is also encouraging, which should lead to the improved returns we seek on our invested capital."
