Hitachi adds 1,000 white label ATMs in 5 months

MUMBAI: Hitachi Payment Services has set up 1,000 white label ATMs in the last five months as the dash to cash during the pandemic is increasing demand for currency notes despite the rise in digital payments. White label ATMs are private machines that are owned and operated by non-bank entities but plugged into the banking network.
According to RBI data, currency in circulation had risen to Rs 27.4 lakh crore by February 12 this year from Rs 23.5 lakh crore as of March 2020. Monthly ATM withdrawals had gone up to more than Rs 3 lakh crore in December from Rs 2.7 lakh crore in March 2020. The average value of the transaction increased to nearly Rs 5,200 in December.
Hitachi Payment Services MD & CEO Rustom Irani said that ‘Money Spot’ — the white label ATM network — had grown to 5,000 last month from 4,000 ATMs in October. Besides setting up white label machines, Hitachi Payments manages ATM networks for banks and deploys ‘brown label’ machines too — these have a bank’s logo but are owned by Hitachi Payments.
While the demand for cash has picked up, the economics of the business has not kept pace. “We are hoping for an increase in the interchange (fees paid by bank to the ATM deployer) as security measures have gone up and also average withdrawal size has increased,” said Irani.

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