Trading Statement

16 March 2007

                            PayPoint plc
                          Trading Statement


Trading has  been  ahead  of  analysts'  forecasts  with  transaction
volumes and revenues to the end of February 29% and 32% ahead of  the
same period last year respectively.   The expected relatively  higher
growth in  lower  margin  Irish  transactions  has  resulted  in  net
revenue1 growth of 29%.  Operating margins are  running at a  similar
level to the same period last year.

Terminal growth should exceed our target of 17,000 by the end of  the
current financial year. We expect to continue rolling out new  agents
at the  current rate  after the  end  of this  financial year.    ATM
installations continue to grow more slowly than last year, running at
a net increase of  about 35 new sites  per month. Good quality  sites
have become more difficult to find but we expect to continue to  roll
out new ATM sites during the next financial year.

Energy prepayment  volumes have  continued to  grow, benefiting  from
increased  gas  and  electricity  prices.  Recently  announced  price
reductions  are  likely   to  reduce  transaction   numbers  in   gas
prepayments unless average  payment values fall  in proportion.  Bill
payment volumes are well ahead of  the same period last year,  mainly
due to the BBC TV Licensing contract award.
Mobile top-up volumes are over 18% ahead of the same period last year
driven largely by the growth in terminals.

ATM transactions have grown  substantially, with the average  monthly
transactions per machine higher than the same period last year.

The  computer  hardware  platforms  for  PayPoint  Internet   Payment
Services (comprising  Metacharge  and  SECPay,  both  of  which  were
acquired this year) will be combined into one operation in the  first
half of the next financial year,  and the SECPay Ripon location  will
close.  Software integration will  follow to allow product  offerings
from either system  to be  delivered to all  merchants including  all
bank acquiring relationships.

PayPoint's preliminary results announcement will be on 17 May 2007.


Note
1  Net revenue is revenue less agent commission and the cost of Irish
mobile top-ups


Enquiries:
PayPoint plc  01707 600 300
Dominic Taylor, Chief Executive
George Earle, Finance Director

Finsbury  020 7251 3801
Rollo Head
Don Hunter


About PayPoint

PayPoint is the UK's and Ireland's leading cash and internet payments
company, handling  over  £4  billion in  over  360  million  payments
annually for over 5,000 clients  and merchants. The company  operates
with several significant payment streams:


  * The PayPoint branded retail network numbers over 17,500 terminals
    located in local shops (including Co-ops, Spar, Costcutter,
    NISA-Today's, Londis and thousands of independents) in all parts
    of the UK and Ireland. Terminals handle cash bill payments,
    mobile phone top-ups, transport tickets, London Congestion
    Charges, BBC TV licences and a wide variety of other payment
    types for all of the leading utilities, telecoms suppliers and
    many consumer service companies. This network is used by
    consumers, free of charge, over 7 million times a week. The
    network has 97.3% population cover on a 1 mile urban or 5 miles
    rural measure;



  * Additional multiple retailer connections into the electronic till
    systems (EPoS) of 3,000 outlets including BP, Somerfield and
    Superdrug for mobile top ups and selected payments from the
    PayPoint range;



  * The PayPoint ATM network has 1850 'LINK'-branded machines across
    the UK, also typically in convenience stores. These machines levy
    a small convenience fee for each withdrawal; and



  * PayPoint Internet Payment Services, trading as Metacharge and
    SECPay, provides secure credit and debit card payments for over
    4,000 web merchants linking into all the major UK acquiring
    banks.


PayPoint floated on the London  Stock Exchange in September 2004  and
was the Financial Times 'New Company of the Year'.  The company has a
market capitalisation of c. £375  million. In year ended March  2006,
revenue was  £120 million  with  profit before  tax of  £20  million.
PayPoint has been  awarded the  Queen's Award for  Enterprise and  is
widely recognised  for its  leadership in  prepayment systems,  smart
technology and consumer service.

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