IRISH ELECTRONIC payments group Payzone, which is led by Mike Maloney, is believed to have been successful in winning a contract from the Railway Procurement Agency (RPA) for the long-awaited and much anticipated integrating ticketing for bus and rail services.
Payzone, which also holds the contract for the M50 barrier-free tolling, was part of a consortium and appears to have beaten its rivals Pay Point and Post Point to the punch, although no official announcement has yet been made. This contract win comes hot on the heels of a major financial restructuring of Payzone, which saw its lenders convert a large chunk of debt into equity, wiping out existing shareholders and delisting the company from the stock market in London.
While the RPA contract looks like a good deal for Payzone, retailers aren’t so happy. Dublin retailers make a near 4 per cent margin on the sale of bus tickets, but they only get about 1 per cent from Payzone for the sale of M50 top-ups. They are concerned similar margins might be employed for bus and rail tickets.
Payzone and the RPA have yet to show their hand and some interesting negotiations lie ahead if integrated ticketing is to finally become a reality.
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