PayPoint, the nationwide cash payment network, has been awarded a six year contract by the BBC as sole provider for the collection of TV Licensing payments over the counter after winning a competitive tender.

Following a transitional period of three months, all over-the-counter TV licence payments will move from the Post Office to PayPoint from 31 July. PayPoint has been collecting certain types of licence payment for the BBC since 1997.

Under the contract, PayPoint will now be able to issue new TV licences in response to first-time applications. It will also be able to accept payments made with the new TV Licensing Savings Card issued to customers who previously used TV licence stamps, and issue short-term licence renewals to people due to become 75 in less than 12 months. PayPoint was previously only able to renew full annual TV licences and accept payments for TV Licensing’s Cash Easy Entry scheme for those on income related state benefits.

PayPoint currently has more than 15,000 outlets in the UK, already making it a larger network than the Post Office, which has 14,585 sites (source: Postwatch). The PayPoint network is expected to continue growing towards 17,000 outlets by 2007. Over 6 million people use the PayPoint service each week, preferring the convenience of being able to pay bills in local shops with extended opening hours.

PayPoint outlets are deliberately located close to customers’ homes and workplaces and most operate seven days a week, with longer opening hours than the Post Office.  Licence payers will therefore have more choice about where and when to pay for their TV licence over the counter in cash or by debit card under the new contract.

Dominic Taylor, Chief Executive of PayPoint, said: “This contract is a significant win for PayPoint and another example of our success in driving transaction volumes by deepening our relationships with clients and broadening our product portfolio. Our network of terminals has now overtaken the Post Office and we hope that this size advantage will enable us to win more national over the counter payment contracts going forwards.”

Pipa Doubtfire, Head of Revenue Management at the BBC said: “This contract will provide better value for the licence payer and will enable the BBC to put more money into programmes.  PayPoint offers a convenient way of paying for a TV licence if people want to buy one ‘over the counter’ rather than through the website, by phone or by post.  We aim to make it as easy as possible for people to buy a TV licence which is why we offer many different ways to pay. “

Enquiries:

Finsbury                                                                                      020 7251 3801
Don Hunter

This announcement is available on the PayPoint plc website: www.paypoint.co.uk.

BBC Press Office 020 8576 1865

About PayPoint

PayPoint is a leading branded payment collection network used, primarily, for the cash payment of bills and services and prepayments for mobile telephones and energy meters. There are over 15,000 retail outlets using PayPoint’s payment terminals.

PayPoint began trading in 1996 and now has more than 500 clients including many of the UK and Ireland’s major energy, cable, mobile and fixed line telephony companies. Its blue chip client list also extends to numerous water companies, local authorities and housing associations and a growing transport and travel base.