DWP Decision

Press release : 3 March 2011


                    PAYPOINT CHOSEN AS PAYMENTS NETWORK FOR
                            CASH PAYMENT OF BENEFITS

      Decision by DWP will benefit local retailers and benefits claimants

PayPoint, the UK's leading branded cash payments network, welcomes today's
announcement from the Department for Work and Pensions (DWP) that PayPoint has
been named preferred supplier to be the retail payment network for the new
service which is to replace green 'Giro' cheques for cash benefits.  The service
will be delivered together with the DWP's selected banking partner Citibank,
whom PayPoint understands the DWP will ask to act as prime contractor.

This service will build on PayPoint's ability to pay out cash through its retail
network, which has proven attractive to both clients and retail agents since it
was launched last year.  It is intended that this service will be delivered
across the full range of benefits for customers who do not have bank or Post
Office card accounts. Similarly to the cheque payments which are being replaced,
customers will be supplied with a document to confirm their entitlement that can
be cashed in a PayPoint retail outlet, but this is the first time that PayPoint
has provided a service to the DWP.

As this is a new service, volumes are difficult to predict.  PayPoint expects to
spend most of next financial year preparing for the start of the service, for
which the DWP will pay set up fees.  Thereafter, revenue should accrue to
PayPoint's established business, helping maintain the growth forecast by the
market.

Dominic Taylor, Chief Executive of PayPoint, said: "We are delighted that the
breadth, quality and efficiency of the PayPoint retail network has been
recognised by DWP and look forward to working with the Department to deliver
this very exciting and socially important initiative.

"The retailers who make up our network work incredibly hard to provide their
service at the very heart of their communities, opening from early morning to
late at night, seven days a week, including bank holidays. The proposed new
system for cash payment of benefits through our network will make it far easier
for the recipients to access their own money at locations and times that are
more convenient for their circumstances and lifestyles and builds on their trust
in the PayPoint brand and service, which millions of cash economy consumers use
every week for their essential payments."

ENDS.

Contact:

Peter Brooker, PayPoint                                 01707 600300

Rollo Head/Don Hunter, Finsbury                    020 7251 3801

ABOUT PAYPOINT

PayPoint is a leading international provider of convenient payments and value
added services to major consumer service organisations in the energy pre and
post-payment, housing, water, telecoms, media, financial services, transport,
retail, e-commerce, gaming and public sectors.

PayPoint delivers payments and services through a uniquely strong combination of
local shops, internet and mobile distribution channels and handles over £10
billion annually from almost 570 million transactions annually for more than
6,000 clients and merchants.

Retail networks
The PayPoint branded retail network in the UK numbers over 22,000 terminals
located in local shops (including Co-op, Spar, McColls, Costcutter, Sainsbury's
Local, One Stop, Londis and thousands of independents). Collect+, a joint
venture with Yodel, formerly Home Delivery Network Limited, provides a parcel
collection and drop off service at more than 3,400 PayPoint retailers. Its ATM
network numbers more than 2,400 'LINK' branded machines across the UK, mainly in
the same sites as PayPoint terminals.

In  Romania, the branded retail network  numbers over 5,000 terminals located in
local  shops, processing cash bill payments  for utilities and mobile phone top-
ups. In Ireland, over 500 outlets in shops and credit unions process mobile top-
ups and bill payments.

Internet
PayPoint.net is an internet payment service provider linking into all major UK
acquiring banks to deliver secure online credit and debit card payments for over
5,500 web merchants. It offers a comprehensive set of products ranging from a
transaction gateway through to a bureau service and FraudGuard, an advanced
service to mitigate the risk of fraud.

PayByPhone
PayByPhone is a leading international provider of services to parking
authorities allowing consumers to use their mobile phones to pay for their
parking by credit or debit card.  It has contracts in the UK, France, Canada and
the USA.


PayPoint is widely recognised for its leadership in prepayment systems, smart
technology and consumer service.







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Source: Paypoint plc via Thomson Reuters ONE

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