India ATM Market Outlook to 2023-Ken Research

India ATM Market Outlook - Sakshi Post

The report titled “India ATM Market Outlook to 2023 – By ATM Supply, Managed Services (ATM Repair, Maintenance and Other Services, Transaction Processing, Cash Reconciliation Statement, Content and Electronic Journal Management) & Cash Management (ATM Replenishment, CIT, CPD)” provides a comprehensive analysis of India ATM Managed Services market introduction and genesis, market size by revenue, market ecosystem, value chain analysis. The report covers snapshot on India ATM Cash Management Services market, decision making process for India ATM Management Services Market and tender process applicable. The report provides a competition competitive landscape of major ATM Managed Services players including Hitachi Payments, AGS Transact, Diebold Systems, Euronet, EPS, Tata Communications Payment Solution, FIS, FSS, Mphasis Payment Managed Services, NCR, and CMS. Companies which are covered in ATM Cash Management practice include CMS InfoSystem, SIS Prosegur, Brink’s Arya, Writer Safeguard, Securevalue, Logicash and Radiant Cash. In ATM Supply, major companies which are covered include NCR Corporation, AGS Transact, Diebold Systems and Vortex Engineering. The report also covers SWOT analysis, future projections along with analyst recommendation.

Key Target Audiences:-

• ATM Managed service providers

• Cash management companies

• ATM Manufacturers

• White Label ATM Management companies

• Public and Private Sector Banks

• Reserve Bank of India (RBI) and NHB

ATM Switch companies

• Cash Reconciliation Companies

• Digital Payments Merchants

• VC & PEs, Investment Bankers

• Merchant Bankers

Market Overview

India ATM management services market is at a developing stage. The ATM Managed Services Market is moderately fragmented among top 6-7 players which constituted 60-70% of the revenue share though there are number of smaller players existing in the market. These small players have usually positioned themselves into few of ATM service category.

Assessment of India ATM Managed Services Market: Indian government during August, 2014 has initiated the scheme of opening up of bank account at zero balance under PradhanMantri Jan DhanYojana (PMJDY). This led to expansion in the number of transactions performed in an ATM as debit card users in India increased significantly.

RBI passed the law to increase the penetration of ATMs in rural areas of India to meet the desired aim of financial inclusion which further supported the growth of ATM managed service market. Over the span of last five years, the number of ATMs installed has increased positively at a double digit growth rate during the period FY’ 2013 to FY’ 2018. As of 31st March 2018, Over 80% of the ATMs are being outsourced by the banks as Banks observed that outsourcing an off-site ATM is much more cost effective instead of managing them by the banks.

Market Segmentation:

By Type of ATMs: In India, there are four types of ATMs management including Managed Services, Brown label ATMs, ATMs Completely managed by banks and White label ATMs. Brown Label ATMs has been recorded as the second highest number of ATMs; these ATMs are owned by banks and further deployed to ATM management companies for their management.

On the other side, penetration of White label ATMs in India is quiet low as compared to other ATMs operating in the market. White label ATMs in India have penetration majorly in rural areas as government is encouraging non-banking entities to open white label ATMs in rural areas to reduce the shortage of ATMs and financial services in rural areas of the country.

By Service Offering: ATM managed services market incorporates various services such as ATM repair, maintenance, ATM Site Management, Cash management services, Transaction processing, ATM supply, Cash Reconciliation Statement and Content & Electronic Journal Management.

ATM repair and maintenance services such as (FLM, SLM and other services such as ATM deployment, management and operationalization of ATM) have dominated the market in terms of revenue during FY’2018. However, other services (Transaction Processing, ATM Site Management, Cash Reconciliation, Content & Electronic Journal Management) contributed rest of the percentage in revenue generation during FY’ 2018.

Snapshot on India ATM Cash Management Services

Market Size: The current cash management cycle involves cash pick up from bank, cash movement from the bank to the ATMs’ locations, grading, counting, monitoring ATMs for assessing the level of cash in an ATM, and replenishing cash in the machine accordingly. India cash management services market has increased at a double digit CAGR during the period FY’ 2013 -FY’ 2018. Market attained significant growth during the period FY’2013 - FY’ 2016 due to increase in services offered by the cash management companies such as cash vault services, bullion management, cash processing and others.

Market Segmentation by Services: Cash management service companies (CMC) generates highest share of their revenue through ATM replenishment service. CIT contributed third largest share in generating revenue for the cash management companies in the FY’ 2017. However, CIT service turned out to be the second major contributor in terms of revenue share during FY’2018, due to increase in license of new bank branches during the above period. CPD contributed the third largest share in terms of revenue for the cash management companies due to increase in number of retail touch points.

Competition Scenario: The market of Cash Management services in India is moderately concentrated. There are few players which have global presence while some of the players are in plans to expand towards PAN India level. With expected increase in the FDI in the Cash Management market, it is expected that with the entry of new foreign entrants, the market will become more fragmented in the near future. CMS Infosystem, Writer Safeguard, SIS Prosegur, Securevalue, Radiant Cash, Brink’s Arya, Logicash are some of the major players which constitute majority share of the overall Cash Management Market. Out of these players, CMS Infosystem continues to be the market leader for past 4 years.

ATM Supply Management: The market for ATM Supply and deployment companies is highly concentrated with few players constituting more than two-third of the total share. NCR Corporation, AGS Transact, Diebold Nixdorf, Nautilus, Hitachi Payments, Vortex Engineering and Euronet are the major players in the ATM supply and deployment industry. NCR Corporation is the market leader followed by AGS Transact and then by Diebold Nixdorf in terms of revenue generation.

ATM Managed Services Company: The competition stage of the ATM Managed Service market is moderately concentrated with banks and other non- financial entities following a policy of having at least two vendors for the management of their ATM centers and simultaneously having the best combination of technology and cost efficiency. Hitachi Payments, Tata Communication Payments Solution, Electronic Payments and Solutions, AGS Transact, Fidelity Information Services, Financial Software and Systems are the major players in the industry. The market is dominated by Hitachi Payments followed by AGS Transact in terms of revenue generation during FY’2018.

Future Outlook and Projections:

By Revenue: In the next 5 years, ATM managed services market revenue is expected to increase as the country will benefit from the implemented schemes of Financial Inclusion and Jan Dhan Yojana coupled with the increasing awareness among the population of semi-urban and rural areas for the usage of ATMs. There will be an increase in the demand for Managed Services owing to the increase in the number of ATMs in the country especially in the rural areas. The outsourcing of cash recyclers in the future by the banks will give these MSPs another tranche of revenues streams.

Key Topics Covered in the Report:-

• India ATM Managed Services Market Size (FY’2013-FY’2018)

• India ATM Managed Services Market Overview

• India ATM Managed Services Market Segmentation By Type Of ATMs (Managed Services, Brown Label ATM, Managed By Banks, White Label ATMs)

• India ATM Managed Services market Segmentation By Type Of ATM Machine (Cash Dispensing And Cash Recyclers)

• India ATM Managed Services Market Segmentation By Service Offerings (ATM Repair And Maintenance, ATM Site Management, Transaction Processing, Cash Reconciliation Statement, Content And Electronic Journal Management )

• India ATM Managed Services Market Segmentation By Business Model (Fixed Pay Model And Variable Pay Model)

• India ATM Cash Management Services Market Segmentation By Services (ATM Replenishment, CIT, CPD And Others)

• India ATM Managed Services market Ecosystem And Value Chain Analysis

• Snapshot on India ATM Cash Management Services Market.

• Decision Making Process And Tender Process Applicable In India ATM Managed Services Market

• Trend And Developments In India ATM Managed Services Market

• Issues And Challenges In India ATM Managed Services Market

• Recent Investment Details (Mergers, Acquisition And Partnerships) In India ATM Managed Services Market

• Complete Competition Analysis Including Heat Maps & Strength and Weakness Of The Major Companies.

• Competitive Landscape Of Major Players In India ATM Managed Services Market

• SWOT Analysis Of India ATM Managed Services Market

• Future Outlook And Projections Of India ATM Managed Services Market (FY’2018-FY’2023E)

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