AGS Transact Technologies signs contract for 2,500 ATMs with SBI

BNE News Desk

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Mumbai: AGS Transact Technologies Limited, a player in payment solutions, has signed a 7-year contract for supply, installation, and management of more than 2,500 ATMs worth INR 1,100 crores with the State Bank of India (SBI).

The move has been described as part of "some significant developments in the second quarter of fiscal 2024, which demonstrate a clear strategic shift as a result of market dynamics."

AGS Transact Technologies has managed to bring on board 8,000 ATMs or CRMs under its fold involving clients such as Punjab National Bank and Union Bank of India, according to the company. Deployment of 270 dedicated cash vans for UBI and Canara Bank with an order value of around Rs. 250 crores over a 5-year term, has been highlighted as another milestone by the company.

By December 31 last year, AGS Transact Technologies had installed or maintained a network of 78,160 ATMs or CRMs in more than 2,200 Indian cities and towns, thus enhancing the growth and accessibility of banking services nationwide. 

AGS is also pilot-testing its open-loop contactless fuel payment solution on its Ongo app. This initiative, happening at select fuel retail outlets in Mumbai, aims to provide consumers with an enhanced digital experience at fuel outlets. 

Ongo app users can pre-set the desired fuel amount for and payment via the Ongo open-loop wallet or virtual prepaid card. Additionally, the Ongo app offers versatility by allowing consumers to make non-fueling purchases at any RuPay acceptance point. Currently, over 580 vehicles have been onboarded in the pilot phase.

It is said to be in line with its overall digital business strategy to provide convenience on the go, which entails the issuance of prepaid cards such as NCMCs (National Common Mobility Card for Bangalore Metro Rail Corporation). So far, approximately 34,700 NCMC cards have been issued.

In the last quarter, AGS Transact Technologies conveyed a revenue from operations worth Rs 373 crores, accompanied by an adjusted EBITDA margin of 23.8%. It was further disclosed that in Q2 FY24, there was a noteworthy surge in revenue from services, reaching 98 percent. This increase aligns with the group's strategic approach of distancing itself from value-dilutive businesses.

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BNE News Desk