Co-operative Food has made PayPoint available in four times as many of its stores across the UK, enabling customers to pay utility bills, rent, council charges and transport costs at the till.
The community-based retailer, which is the UK's largest PayPoint operator handling more than one million transactions each week, now has approaching 12,000 tills upgraded to process bill payments.
The Co-op said the move "underlined its commitment to the communities in which it trades." It has a store in every postal area.
The Co-operative Food handled more than £1bn of PayPoint transactions last year. It said it had worked with PayPoint to extend its offering, enhance the service and drive down transaction times for customers paying their bills at the same time as putting their groceries through the checkout.
Seamus Smith, managing director of PayPoint UK, said: "We are thrilled at extending and enhancing the PayPoint service with The Co-operative Food, with the service now available in most of its stores.
"Independent research constantly shows just what a valuable service PayPoint is to customers; for example, more than 30% of transactions take place outside traditional working hours, including Sundays and bank holidays. This illustrates the massive contribution that community-based retailers such as The Co-operative make locally through their convenience stores, which are at the heart of their communities."
"As a convenience retailer, in addition to providing the daily food requirements of our customers, it is important that we make a positive contribution to the communities in which we trade."
More than four million households in the UK have around 7.5 million pre-payment gas and/or electricity meters that can be 'loaded' at PayPoint terminals. The service also handles bill payments for water, telecoms, TV Licensing, housing associations and transport operators plus local authorities and other public sector bodies.