Euronet Worldwide announces expansion into the U.S. ATM outsourcing market. There are approximately 470,000 ATMs in the country but only 6% of the terminals are currently outsourced.

29 aprilie 2020

Euronet Worldwide, a leading global financial technology solutions and payments provider, announced the completion of the acquisition of Dolphin Debit, a U.S.-based full-service ATM outsourcing company. 

Dolphin Debit (Dolphin) provides comprehensive ATM outsourcing of more than 1,900 ATMs for its approximately 300 bank and credit union customers across the United States.


„Financial institutions choose Dolphin and Euronet ATM outsourcing solutions to free their staff of the burden of ATM operations in order to focus on the institution’s core competencies. Benefits include the reduction of capital and operational expenses, improvement of ATM performance and innovations, management of ATM compliance obligations, achievement of economies of scale, and elimination of arduous vendor management.”, according to the press release.   

The market opportunity for ATM outsourcing is large for Dolphin and made more attainable through the addition of Euronet’s own experience in outsourcing (26,000 ATMs) and pass-through processing (136,000 ATMs) as well as the company’s advanced payments technologies. Consider:

. Many of the financial institutions in the United States are small in staff and without technical expertise. With Dolphin, Euronet can now easily extend the advanced ATM-based services and  technologies it has built throughout other parts of the world to these businesses to make them more competitive in their markets and attractive to customers.

. Current ATM outsourcing in the U.S. is lacking services for advanced products such as mobile banking, digital wallets, digital content distribution, and other services customers demand. Through this acquisition, Euronet’s payments processing expertise with its REN Foundation and REV Payments Cloud become available to U.S. financial institutions of all sizes through Dolphin ATM outsourcing services.

. For all financial institutions but especially the larger ones, Euronet’s available capital, global economies of scale, and ATM outsourcing experience in other parts of the world will enhance Dolphin’s ATM and intelligent-ATM outsourcing offerings.    

. Dolphin’s ATM locations are placed in the U.S. at bank or credit union branches to serve their customers’ needs for cash and largely have been unaffected by seasonal travel, the COVID-19 pandemic, and other factors that affect ATM usage in other worldwide markets.

. ATM outsourcing has existed for years but recently became a focus for banks and credit unions primarily because of increased regulatory pressures and a constant stream of complicated and mandated software upgrades. 

Studies suggest there are approximately 470,000 ATMs in the United States with about 191,000 of those owned by credit unions and banks and the remaining 279,000 under control by independent operators1. It’s also estimated only 6% of the bank and credit union-operated ATMs are currently outsourced2, leaving a large available market for the enhanced services made possible through the combined resources and experience of Euronet and Dolphin.     

“ATM outsourcing in the United States historically has been limited to cash dispense and deposit transactions without any advanced processing services available,” said Michael J. Brown, Euronet’s Chairman and Chief Executive Officer.  “Euronet can now offer more to these customers with our technical abilities to process any transaction – digital or cash – worldwide. These are the services banks in the U.S. are increasingly being asked for by mobile-savvy customers and we will be in an excellent position to elevate the technical profile and product portfolio of any bank through our outsourcing services with Dolphin.”

Euronet’s global payment network is extensive – including 46,070 ATMs, approximately 330,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 61 countries; card software solutions; a prepaid processing network of approximately 728,000 POS terminals at approximately 339,000 retailer locations in 53 countries; and a global money transfer network of approximately 402,000 locations serving 158 countries.

With corporate headquarters in Leawood, Kansas, USA, and 66 worldwide offices, Euronet serves clients in approximately 170 countries.

1 National ATM Council. Location Study of ATMs in U.S. by Ownership.

2 S7P Global Data and RBR Reports

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Gabriela Nistor – director general adjunct BT

Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”

Sondaj

In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale in 2020?