The following chart sets forth future projections of India’s ATM managed services market size by revenue and
growth rate for financial years 2022 to 2026:

 

 

2,00,000.0 ass uaa [2%
1,80,000.0 es 18.0%
1574809  1,64,847.1
1,60,000.0 oe 16.0%
1,40,000.0 | 1,28,866.9 14.0%
&  1,20,0000 120% ¢
= 1,00,000.0 10.0% ZF
=
= 80,000.0 8.0% 3
60,000.0 60%
40,000.0 + 4.0%
20,000.0 2.0%
0.0 + 1 0.0%
FY'2022 FY'2023 FY'2024 FY'2025, FY'2026
=m 2 Million —8=—Growth %

Source: India ATM Market Outlook to 2026, Ken Research, August 2021.

India ATM Managed Services Market Size by Service Offerings

In the future, it is expected that a majority of the revenue through ATM managed services will be generated
from ATM site management which comprises surveillance, electricity payment, consumables, payment of rent,
network services and services such as ATM deployment, management and the operationalization of ATMs. A
decrease in ATM rollout could lead to better revenue from existing ATMs through an increase in the average
number of transactions per ATM.

Cash in circulation is still expected to increase in the future which will further contribute to growth in the
number of transactions performed with ATMs. Cash management services are expected to generate revenue at a
CAGR of 13.0% from financial years 2021 to 2026.

The following table sets forth the contribution of each segment of India’s ATM managed services market to
total market revenue for financial years 2022 to 2026:

 

 

 

 

 

 

 

 

 

Service Offerings FY2022 FY2023 FY2024 FY2025 FY2026
ATM Site Management 37.6% 35.8% 36.3% 36.7% 37.1%
Cash Menagement 32.7% 37.3% 36.6% 35.8% 34.6%
ATM Supply 11.0% 10.4% 11.3% 12.0% 13.1%
Transaction Processing 5.5% 5.0% 4.8% 4.7% 4.6%
ATM Repairand 5.3% 4.9% 4.6% 4.4% 4.2%
Maintenance
Cash Reconciliation 4.7% 4.3% 4.2% 4.2% 4.2%
Statement
Content and Electronic 3.1% 2.30% 2.0% 2.2% 2.2%
Journal Management
Total 100.0% 100.0% 100.0% 100.0% 100.0%

 

 

 

 

 

 

 

 

Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
India’s ATM Cash Management Services Market and Market Size

Cash management is the process of collecting, managing and replenishing the cash in an ATM which is
outsourced by banks to MSPs. Major services offered by cash management companies include ATM
replenishment, cash-in-transit (CIT), retail cash management (RCM) or cash pickup and delivery (CPD) and
others. There are instances where a managed service provider does not deal in cash management. In this case the
service provider will further outsource cash management services to a third party. Prior to the implementation of
cassette swap and the MHA guidelines, services for managing cash replenishment in an ATM cost 26,500 to
27,500 per month. However, the final cost depends on the number of trips. After the implementation of the
cassette swap and the MHA guidelines, cash replenishment charges will increase to 712,500 to 213,000 per
ATM per month.

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