reached over 14.5% of the GDP during financial year 2021. In the future, banks will look to deploy more cash
recyclers, which is expected to support revenue growth for AGS Transact Technologies Limited (“AGS
Transact’).

In the forecast period, due to a surge in interchange fees, banks are expected to deploy more ATMs which is.
likely to support the growth of MSPs in the country. In line with this, the number of transactions per day per
ATM is expected to reach around 104 by financial year 2023, showcasing promising future growth.

The following table sets forth the impact of COVID-19 on India’s payment business dynamic:

 

 

Payment Category Relative Impact Remarks
Concerns over transmission of the virus through the
Cards o exchange of physical currency will boost online card
transactions.

 

Wallets will also see increased traction for P2P
transfers, bill payments and P2M payments for
essential services owing to the lockdowns and
Issuance Wallets Qe aversion to exchanging cash. However, some wallet
players have increased their fees for merchants and
consumers, leading to merchants not accepting their
wallets for transactions.

 

Fund transfers to/from bank accounts will likely see

 

Bank E 3 Bae
weeeunty o an uptick as people substitute cash with digital
transfers.
Transactions at ATMs will decrease as a result of the
ATM @ lockdown being enforced. Not much cash will be

required compared to earlier.

 

POS terminals at stores selling essential items will
POS a see an uptick in transactions, while those at most

Acquiring other establishments will see a decline.

 

Payment gateways will see an increase in volumes as
transactions go online. They can also tie up with
small stores selling essentials who are currently
seeking to establish an online presence.

Payment
Gateways

 

 

UPI is primarily driven by P2P and P2M payment
transactions. With fears of virus transmission through
cash, P2M UPI transactions for essential services
(including QR-based payments) will see an increase.

UPI @

 

The IMPS facility will see relatively increased

IMES s activity as fund transfers shift to digital means.

 

Payment Infrastructure With no physical avenues to pay bills, people are
BBPS e adopting Bharat Bill Pay Service (“BBPS”), leading
to a relatively higher number of transactions.

 

The National Electronic Toll Collection (“NETC”)
program, which facilitates FASTag toll payments,
will be adversely affected due to restrictions on
travelling.

NETC e

 

 

 

 

‘Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
Ecosystem for India’s ATM Managed Services Market

The following chart set forth the ecosystem for India’s ATM managed services market:

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