Bill Express scraps newsagent subsidy

Bill Express is testing the support of the newsagencies that are the retail outlet for its bill payment platform and related in-store advertising business.

The Herald Sun reported that Bill Express has advised newsagents it will scrap a subsidy to cover the shortfall between newsagent commissions and a four-year, $495-a-month lease on a bill payment, phone credit and Eftpos package.

Bill Express also faces problems with suppliers on a second front. The firm confirmed yesterday it was in dispute with Optus. The latter terminated an agreement to supply prepaid phone cards for resale through the former's newsagency network.

Bill Express said Optus did so "on the basis of a failure to pay an amount owing to Optus".

The company's ASX announcement yesterday did not dispute that it owed Optus money but did dispute Optus was in a position to terminate the supply of phone cards for resale.

Bill Express did add that "it is able to pay its debts as and when they fall due".