Alternate banking channel FINO Paytech and Tata Communications Payment Solutions, which operates the Indicash white-label ATM network in the country, have signed a strategic partnership to financial inclusion in the country. Under the deal, the companies intend to set up more ATM services and financial and value added services in underbanked geographies.
Through this deal, FINO Money Mart outlets will have Indicash ATMs and similarly Indicash locations will have FINO Money Mart points. The installations are expected to go live first in Gurgaon, Faridabad and Pune and will extend to 100 outlets by the end of the fiscal in states like Maharashtra, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Delhi, Gujarat, Haryana and Karnataka.
A white-label ATM is operated by a non-bank entity and allows customers to withdraw money from any card for a fee. Tata’s Indicash has over 5,000 ATMs in its network across 3,000 villages and towns in the country.
FINO’s Money Mart outlets offer a range of banking and payment services such as domestic remittance, international remittance cash out, utility bill payments, travel bookings, mobile/DTH recharge, online shopping, cash management services and Aadhaar Kendra Services to its customers in unbanked locations. Earlier in March, FINO said that it will be increasing the total number of Money Mart outlets in the country to 1,000 from 235 outlets in urban and semi-urban areas and 124 outlets in rural areas.
E-commerce tie-up with Snapdeal
Earlier in November 2014, FINO Paytech tied up with ecommerce marketplace Snapdeal to launch assisted e-commerce centres in semi-urban, rural and low-income residential areas across India. Snapdeal had planned to set up such FINO PayTech-operated assisted e-commerce outlets or kiosks across 70,000 rural areas in 65 cities by end of the financial year.
Under the deal, Snapdeal has created a curated list of over 1000 products, including speakers, juicers, solar lanterns, diner sets, camera and mobile phones among others, which only the FINO agents can log into. Customers can browse through products on offer and the FINO agents can place orders on their behalf. Once the order is confirmed the FINO agent will collect the payment. Snapdeal will deliver the product(s) to the outlets and FINO PayTech will then deliver it to the customers.
Payments bank application
In February, the company had also applied for a payments bank licence along with other wallet payment companies such as Paytm and MobiKwik and telecom companies such as Vodafone, Airtel and Idea. In 2013, FINO’s subsidiary Alpha Payment Services launched its mobile wallet services in India.