© Reuters. Lloyds Banking Group and PayPoint expand partnership
Proactive Investors – PayPoint PLC (LON:) shares were up 2% after it announced a ‘significant expansion’ of its collaboration with Lloyds Banking Group PLC (LON:);s Cardnet, which will now serve as its primary card processing partner across its network.
This enhanced multi-year pact will enable the black horse bank to provide a suite of banking and card services to its merchants.
These services include card payment processing, a 12-month fee waiver for a Lloyds Bank business account, and a commercial card solution, investors were told.
The full launch of the partnership is anticipated in the third quarter of 2024, pending regulatory consent and subsequent to a trial phase scheduled for the second quarter.
PayPoint CEO Nick Wiles 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.”
Investment bank Liberum hailed the Lloyds deal as it repeated its ‘buy’ advice and 1,100p share price target (current price 491.5p).
It added that the deal would provide PayPoint a significant shove towards its target of generating £100 million of underlying earnings (EBITDA) by 2026.
“PayPoint’s position on the high street differentiates it in the crowded payment space and will be further enhanced by the announcement today,” Liberum added.
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