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India1 payments to expand white label ATM networks
July 17, 2023
ICICI Ventures-backed India1 Payments, a white-label automated teller machines (ATMs) player, plans to expand its network from the current 12,500 units to over 20,000 in the next three years.
It will incur a capital expenditure of ₹120-150 crore per annum over next three years to expand the network and replace the current units in semi-urban and rural areas.
K Srinivas, managing director and chief executive officer of India1 Payments, said the network expansion would be funded through internal sources. “The hike in the inter-change fees for ATM transactions in 2021 has improved our cash generation to spend on our own expansion and we do not need to take debt,” he said.
White-label ATMs are units run by a non-bank organisation and allow customers from any bank to withdraw money and receive other value-added services. The total ATMs in the country stood at 259,000 at the end of March. Of which 36,000 were white-label ATMs, according to Reserve Bank of India data. Other key players in the white-level ATM space include Hitachi Payment, Tata Communications Payment Solutions, and Vakrangee.
At present, white-label ATMs represent 15 per cent of all ATMs in India. In developed countries, this share is over 60 per cent. Srinivas said there was a huge scope for expanding the network to meet requirements of customers.
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