Mumbai ,

The report titled India ATM Managed Services Outlook to 2026 (Second Edition) – By Managed Services (ATM Repair &Maintenance, ATM Site Management, Transaction Processing, Cash Reconciliation Statement, Content and Electronic Journal Management), ATM Supply& 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, ATM supply market and tender process applicable. The report provides a competition competitive landscape of major ATM Managed Services players including Hitachi Payments, AGS Transact, Diebold Nixdorf, Euronet, EPS, Tata Communications Payment Solution, FIS, FSS, NCR Corporation, CMS Infosystem and others. Companies which are covered in ATM Cash Management practice include CMS InfoSystem, SIS Prosegur, and Brink’s Arya, Writer Safeguard, Secure value/AGS Transact and others. In ATM Supply, major companies which are covered include NCR Corporation, AGS Transact, Hitachi Payments, Hyosung and others. The report also covers Impact of Demonetization and Covid-19 on the ATM Managed Services, SWOT analysis, and future projections along with analyst recommendation.

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.

Indian government during August, 2014 has initiated the scheme of opening up of bank account at zero balance under Pradhan Mantri Jan Dhan Yojana (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 during the period FY’ 2016 to FY’ 2021. As of 31st March 2021, Over 90% 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 (MSPs), Brown label ATMs, (Completely Outsourcing/IADs) ATMs Completely managed by banks and White label ATMs. Brown Label ATMs (IADs) 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 and semi-urban areas as government is encouraging non-banking entities to open white label ATMs in these to reduce the shortage of ATMs and financial services in rural and semi-urban 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’2021. Other services (Transaction Processing, ATM Site Management, Cash Reconciliation, Content & Electronic Journal Management) contributed rest of the percentage in revenue generation during FY’ 2021.

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 single digit CAGR during the period FY’ 2016 -FY’ 2021. Market attained significant growth due to increase in services offered by the cash management companies such as cash vault services, bullion management, cash processing and others. The cash management segment is expected to grow at a positive double digit CAGR during FY’2021 – FY’2026 as the implementation of cassette swap takes place.

Market Segmentation by Services: Cash management service companies (CMC) generates highest share of their revenue through ATM replenishment service. CIT contributed second largest share in generating revenue for the cash management companies in the FY’ 2021due to increment 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 but also witnessed a decline during the FY’2021 due to COVID-19 pandemic.

Competition Scenario: The market of Cash Management services in India is moderately concentrated. 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. Brink’s Arya, CMS Info system, Radiant Cash, Secure value/AGS Transact, SIS Prosegur and Writer Safeguard are 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 few years.

Competition Scenario

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. AGS Transact, NCR Corporation, Hitachi Payments, Hyosung, OKI, Pertoare the major players in the ATM supply and deployment industry. NCR Corporation is the market 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’2021.

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 including cash dispensing and cash recycling machines, in the country especially in the rural areas.



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