More than 3000 newsagents across Australia are unable to process bill payments or pre-paid mobile vouchers after the collapse of payments company Bill Express.

The company, which until last year was the main sponsor of the St Kilda Football Club, told the sharemarket yesterday afternoon its operations would be placed into the hands of administrators, after a meeting with creditors yesterday morning.

That announcement came after a company that had agreed to become a major investor in Bill Express, Al Othman Group, cancelled its plans for the company.

About 11am, Bill Express contacted newsagents urgently requesting they stop accepting all bill payment and recharge transactions, as well as deposits for the Bill Express-owned bopo pre-paid credit card.

The Age reported last month that Bill Express had debts of more than $180million.

In a statement to the stock exchange, Bill Express said it held a meeting yesterday morning with advisers, financiers and major suppliers to discuss Al Othman Group's withdrawal.

Bill Express director and chief financial officer Sean Slattery said, ''The suppliers indicated to the company that in these circumstances they are not willing to continue the stand-still arrangements or otherwise support the company's continued trading.

''The directors have therefore resolved to appoint administrators to the company, which will take effect today.''

A central Melbourne newsagent owner, who did not want to be named, said up to a quarter of his monthly net sales involved Bill Express.

He said customers processed up to 300 transactions a week through the service, most often to recharge mobile phones and buy phone cards.

He did not know what the collapse would mean for ''customers or previous customers''.