Post Office doubling bill payment network as acquisition of Payzone bill payments gets green light

• Together, the two networks will provide nearly 25,000 locations at which customers can pay their household bills quickly and conveniently.
• Over-the-counter bill payments are a vital service for many customers to pay a wide range of bills, including phone, gas and electricity.

• The newly-approved acquisition will give the Post Office the opportunity to compete for more, and bigger, bill payments contracts.

• The move will create more choice for customers, in turn driving footfall to both Post Office branches and Payzone outlets.

• This is an exciting time for the Post Office and another step in the business’s ongoing transformation: 7,500 branches modernised since 2012, thousands of branches now open for longer, and around 4,000 branches open seven days a week.

The Post Office has today (19 October 2018) been given the go-ahead to complete its acquisition of the Payzone bill payments business by the Competition and Markets Authority (CMA) – with the dealset to complete in the next week.

Bill payments are a core part of the Post Office’s retail offer; they provide a valuable over-the-counter service to customers, generating footfall across its 11,500 branches. The move means Post Office will acquire an additional network of more than 13,000 Payzone bill payment outlets open more than 100 hours a week, along with their bill payment technology.

It is great news for customers who rely on over-the-counter-bill payment services, as it will offer them even greater convenience and access; it is great news for Post Office branches and Payzone retailers, as it will help to drive regular, repeat business into their shops; and it is exciting news for the Post Office too, allowing it to generate new income for the business so it can continue to invest and improve its services.

With over 500 million bill payment transactions across the UK last year, it is a market which presents a strong growth opportunity for both the Post Office and Payzone networks. This acquisition will allow the Post Office to be a more attractive partner to a wide range of organisations, providing even greater convenience to their customers, who will be able to access a total of nearly 25,000 bill payment points across the UK.

The approval of the deal, which was announced by the CMA today, represents another milestone in the Post Office’s continued modernisation, ensuring that people across the UK - including the most vulnerable and those without online access - have easy access to vital services.

This deal also builds a stronger, more sustainable Post Office, continuing the broader transformation that the Post Office has been undergoing in recent years. Since 2012, it has invested in, and modernised, more than 7,500 branches, and improved services for customers, adding over 200,000 extra opening hours a week across the network.

Debbie Smith, Post Office Retail Chief Executive, commented:

“We’re thrilled to welcome Payzone’s bill payments network into the wider Post Office group. Bill payments are a vital service for customers, particularly for many vulnerable or elderly customers and people who don’t have online access so rely on paying their bills over the counter.

“This deal allows us to more than double our bill payment network. Through our combined reach of 25,000 bill payment outlets we are now in an even stronger position to compete for new and bigger bill payment contracts, helping to bring in more customers for Post Office branches and Payzone retailers alike.”

Post Office will now work closely with Payzone’s bill payments business to complete the deal between the two businesses, with Payzone Bill Payments Limited set to operate as a subsidiary of Post Office Limited. Post Office will welcome Payzone bill payments employees, retailers, clients and supporting suppliers into the Post Office Group and will own and operate the Payzone brand, although there are no current plans to change it. The Payzone Card Payment business will continue to use the Payzone brand during a period of separation.

Work will also begin on integrating technology in both Payzone outlets and Post Offices, so customers will be able to pay the same bills at either a Payzone outlet or a Post Office branch, boosting convenience and choice.

ENDS

Issued by:

Post Office Press Office

20 Finsbury Street

LONDON, EC2Y 9AQ

Tel:020 7012 3456 (24 hours),

Email: pressoffice@postoffice.co.uk www.postoffice.co.uk

Notes to editors:

About Post Office

• With 11,500 branches, the Post Office is among the larger retail networks in the UK.
• 97% of Post Office branches are run with retail partners on an agency or franchise basis.
• The Post Office provides services central to peoples’ everyday lives; 99.7% of the population lives within 3 miles of a Post Office.
• We offer the UK’s largest fee free cash withdrawal network through our 11,500 branches and an additional 2,500 cash machines and 99 per cent of UK bank customers can access their accounts at the Post Office.
• We sell 170 different products and services spanning financial services including savings, insurance, loans, mortgages and credit cards; Government services; telephony; foreign currency; travel insurance and mail services.
• Post Offices branches remain highly valued and trusted, and are the focal point of many communities. For more information; visit www.postoffice.co.uk and to find out about a Post Office business opportunities; visit www.runapostoffice.co.uk

About Payzone

Founded in 1989, Payzone specialises in providing simple and cost effective payment solutions for retailers and other businesses.

Payzone employs approximately 400 people across 3 sites – Northwich, Stockport and Grimsby.

Since 2016 Payzone has focused its strategy on providing card payment solutions designed to help SMEs (retail and non-retail) grow their businesses

Post Office is purchasing Payzone’s Bill Payments business which is based in Northwich. This is a separate standalone business employing around 70 people.

Payzone provides a range of Bill Payment services for Telecoms, Energy, Water and Housing plus Transport Ticketing and much more through a network of Convenience retailers.

Following completion of the transaction, Payzone will continue to be focused on its Card Payment business based out of its Stockport and Grimsby offices.

The Payzone Card Payment business will continue to provide card services to the Payzone Bill Payments network through a long-term partnership.