US-based transaction processing group First Data will purchase ATM deployment company CashAxcess for an undisclosed amount, from local companies.
First Data has signed the agreement with Mvelaserve, a Mvelaphanda Group company, and Industrial Electronics Investment, a Venfin company, to acquire CashAxcess.
The deal strengthens First Data's international ATM deployment capability and expands its local presence in SA. The US company has operated in SA since 1993, offering a range of payment services to banks and retailers.
First Data VP George Zafirakis says the combination of CashAxcess' “considerable ATM expertise and knowledge of the local business environment, coupled with First Data's scale and global experience, will ensure we can deliver an enhanced service to clients in SA”.
Growth area
First Data's director for sales organisation in Africa, Estevao Tokata, stated: “ATM outsourcing is a growth area within the South African payments market as banks look to drive more cost-efficiencies through their operations.”
He adds that “banks are concentrating on building and providing core banking services to their customers, while working with specialist partners such as First Data to enhance the breadth of payment solutions offered to their customers”.
CashAxcess has operated in SA since 2005 and provides end-to-end, outsourced ATM services to some of the top banks in the region, including Mercantile, Capitec and Absa, through its 200 ATMs.
The company also offers a range of ATM products and services to the corporate and retail market, including ATM delivery and installation, signage, wireless general packet radio service communication, cash management and replenishment services, ATM monitoring, equipment insurance, sales, as well as marketing and training services.
First Data operates a global ATM business with networks in the US, Asia Pacific and across Europe. In addition, First Data offers ATM outsourcing and deployment solutions for banks and retailers in more than 17 countries around the globe.
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