PayPoint and Lloyds Bank announce strategic partnership expansion to benefit UK SMEs

PayPoint Plc, a pivotal network connecting payment and retail services, alongside Lloyds Bank, one of the UK’s leading financial institutions, have declared a significant expansion in their partnership. This collaboration is set to position Lloyds Bank Cardnet as the primary card acquiring partner for PayPoint‘s extensive network, encompassing over 60,000 SME and retailer partners. Slated for a pilot phase in Q2 FY24/25 and aiming for a full launch in Q3 FY24/25 pending regulatory nod, this move is anticipated to markedly enhance the banking and card services offered to merchants.

This partnership is designed to offer merchants a comprehensive suite of banking services, including card payments, a 12-month fee-free business account from Lloyds, and competitive commercial card offerings. Such an integrated proposition is expected to solidify PayPoint Group’s position in the market, spurring growth across its merchant networks and bolstering the tools, support, and experience available to its SME and retailer partners.

The agreement heralds several advancements for PayPoint Group’s clientele, such as more prompt settlement times, swifter onboarding processes, access to a new merchant app, enriched customer data and insights, and broader exposure to Lloyds’ comprehensive array of business banking and lending products. Lloyds Bank Cardnet is set to receive substantial investments to fuel product development and data analytics capabilities for the benefit of merchants.

Expanding into Northern Ireland and introducing new revenue avenues for the Merchant Rentals terminal lease business, this partnership also paves the way for additional growth opportunities within PayPoint Group’s expanded service range. This includes a merchant rewards scheme utilizing the Love2shop rewards and engagement platform.

Nick Wiles, CEO of PayPoint, emphasized the strategic nature of this partnership, projecting significant benefits for SMEs and retailer partners. The collaboration aims to enhance PayPoint’s market position, foster merchant network growth, and equip partners with superior tools and support. This initiative is crucial for achieving PayPoint’s ambitious target of £100m EBITDA by FY26 end.

Melinda Roylett, Managing Director at Lloyds Bank Merchant Services, highlighted the partnership’s role in supporting UK SMEs through a leading range of card acquiring and banking services. This collaboration aligns with Lloyds Bank’s commitment to supporting business customers in their growth journeys.

Natalie Lightfoot of Londis Solo Convenience in Glasgow lauded the partnership as a significant development for small businesses facing contemporary challenges. The collaboration between Lloyds Bank Cardnet Merchant Services and PayPoint is seen as a pivotal support mechanism for businesses aiming to thrive and serve their communities effectively.

The strategic expansion of the partnership between PayPoint and Lloyds Bank heralds a new era in support and growth opportunities for UK SMEs and retailers. By integrating sophisticated banking solutions with PayPoint’s extensive network, this collaboration is set to revolutionize the way merchants access and utilize financial services, promoting sustainability and growth in the competitive UK market.