TSI India Important Strategic Tie Up With SREI in India
Transaction Solutions International $TSN announced a new agreement with Indian infrastructure provider, SREI, to completely manage the deployment and operation of up to an additional 9,000 ATMs in India. TSN will identify the sites, deploy and then operate the ATMs including control of the financial transactions. An initial trial of 50 sites will commence immediately, with a larger rollout expected in 2017. If fully implemented, the number of ATMs under TSN's control will increase to 22,000.
TSI INDIA ANNOUNCES STRATEGIC TIE UP WITH SREI INFRASTRUCTURE FINANCE CORPORATION
(WHITE LABEL ATM DEPLOYER - 9,000 ATM R.B.I. LICENSE)
- TSI India secures agreement to provide SREI Infrastructure Finance Corporation (SREI) a complete ATM outsourcing platform solution including transaction processing, fully compliant with RBI guidelines for ATM white label deployment
- SREI, a publicly listed company on the London Stock Exchange and Bombay Stock Exchange, is one of India's largest private sector integrated infrastructure institutions and holds an ATM white label license for deployment of 9,000 ATMs from the Reserve Bank of India
- TSI India to showcase its expanded capabilities and adds financial processing and switching to its wide ranging services
- Letter of Intent with SREI for initial pilot of 50 ATM’s with installation to be completed in August 2016
- TSI India to earn revenues on a cost plus model
Transaction Solutions International Limited ("TSN") is pleased to announce the completion of a signed Letter of Intent (LOI) by Indian-focussed Automatic Teller Machine (ATM) and electronic payment and financial services company, TSI India, to further increase the company’s strong footprint in the emerging Indian etransaction market. TSN and its subsidiaries hold a 24.89% equity interest in TSI India.
Under the LOI with SREI Infrastructure Finance Corporation (SREI), one of India’s largest and leading Infrastructure groups established since 1989 and publicly listed on multiple exchanges, TSI India will provide a comprehensive ATM outsourced platform solution including all managed services to SREI. This includes financial processing and switching of SREI’s ATM transactions on its network. Financial processing and switching allows for the authorisation of transactions to occur and be processed in order for settlement to happen between parties.
Since increasing its suite of services to include a full managed services platform in April 2016, TSI India has now achieved another company first by extending its suite of services to incorporate control of financial transactions. This provides another layer of potential revenues to be realised, and increases TSI India’s competitiveness in the market.
This will be TSI India’s first agreement where it will showcase its expanded capabilities to the Indian market which include such services as:
- Full project management for site establishment and expedient ATM deployment
- Ongoing management of ATM operations
- Full suite of ATM controls offered through TSI India’s recently acquired managed services platform
- Financial switching and transaction processing
As this is a “first” for both parties, the ATM rollout schedule willstart with 50 ATMs being placed in Bihar, West Bengal, Uttar Pradesh, Assam, Maharashtra and Tamilnadu. These 50 ATMs will be considered as a pilot program and upon successful completion of this phase 1, TSI India expects to extend the service to SREI for the balance of its 9,000 ATMs as a part of SREI’s white label ATM strategy.
CEO of TSI India, Mr. Mohnish Kumar advised that, “the financial structure of the deal with SREI has been designed as a long term 9,000+ ATM deal. The terms of agreement meet our internal IRR targets and most importantly, we are very pleased to be able to collaborate and be a solution provider to such a prestigious Indian company.”
Mr Kumar went on to say that, “Our team’s has previously deployed in excess of 900 ATM installations in one calendar month. We are confident that our proficiency will allow us to move at a swift pace and align to SREI objectives post our first 50 ATM deployments. It has been agreed that given the successful pilot of these 50 ATMs, the agreement will expand to include a mutually acceptable plan, including logistics and financing for the balance of the 9,000ATMs to be deployed under SREI’s White Label ATM license.
As of date, the TSI India project management team has already had its initial operational meetings with SREI for the phase 1 rollout, the National Payments Corporation of India (NPCI) in regards to financial switching requirements and completed the project plan.
The Board of TSN looks forward to further updating shareholders post the effective date or in the event of any material development.