Lloyds set to become main payments processor for Paypoint as bank expands small business footprint
Lloyds is set to become the main processor of card payments for Paypoint's 60,000-strong network of small businesses and retailers.
Lloyds Bank and Paypoint have announced they are expanding their existing partnership, with the lender set to become the main processor of card payments for Paypoint’s 60,000-strong network of small businesses and retailers.
In an update on Wednesday, the financial services companies said they plan to start testing the initiative in the second quarter of the 2024-25 financial year, with a full launch the following quarter if regulators give it the green light.
The move aims to allow business owners to get easier access to banking services, faster payments, more insights into their customers and broader access to Lloyds’ range of business banking and lending products.
Nick Wiles, chief executive of Paypoint said: “The expansion of our long-standing relationship with Lloyds Bank Cardnet Merchant Services has been a key strategic decision for our business and one that we believe will deliver major benefits to our SME and retailer partners.
“We are confident this partnership expansion will deliver an enhanced proposition and experience which will strengthen our market position, accelerate the growth of our merchant network and provide better tools and support for our SME and retailer partners as they look to grow their own businesses.”
For Paypoint, the expanded partnership creates growth opportunities such as a rewards scheme, as the British payment system company targets earnings before tax of £100m by the end of FY26.
Melinda Roylett, managing director at Lloyds Bank merchant services said: “Our partnership with Paypoint is incredibly important for our next stage of growth and leveraging the significant investment we are making in the Lloyds Bank Cardnet Merchant Services business.
“The strength of their enhanced platform and network provides us with an unparalleled distribution capability to enable us to support even more UK SMEs with our leading range of card acquiring and wider banking services.”
