Hitachi Payment Services Pvt Ltd (HPSPL) is investing Rs 1,250-1,500 crore in SBI Payment Services (SPS) for a 26% stake through subscription to new shares and a purchase of SBI’s stake, reports the Times of India. This values SPS for Rs 5,000-6,000 crore, according to the report. SPSPL will become a 74% stakeholder, as opposed to the previous 100%, after the HPSPL stake acquisition. In December, the CCI had approved HPSPL’s 26% acquisition in SBI Payment Services.

Note that in October last year, HPSPL had entered (pdf) into a joint venture with SBI for a digital payment card acceptance platform for India. This JV would focus on card acceptance infrastructure, QR code payments, UPI, mass transit and ecommerce businesses.

Hitachi’s Prizm Payments acquisition

HPSPL had already been providing ‘deployment, technology and management services’ for SBI’s card and digital payment services since 2011. In 2014, India’s Cabinet Committee on Economic Affairs approved Hitachi’s acquisition of ATM and POS company Prizm Payments Services, a deal which the CCEA said would bring Rs 1540 crore (around $250 million) into the country.

Metrics

  • SBI claims to have 22,500 branches and 59,000 ATMs, while YONO, its banking app claims to have over 1 crore downloads with over 300,000 logins per day. SBI also claims that over 1.6 million SBI accounts were opened on YONO, and peaked at 27,000 accounts per day.
  • HPSPL, meanwhile, claims to have 55,000 ATMs, 12,000 CRMs and 850,000 POS devices (mobile POS included) under its management.

SBI’s alternate channels numbers

For the quarter ended September 2018, SBI’s share of transactions via “alternate channels”, which are channels other than the bank branch, increased to 83.47% of the total transactions from 78.45% as on September 2017.

– 18.1% via Internet banking (down from 22% a year ago)
– 12.6% on PoS terminals and e-commerce (up from 12.1%)
– 15.5% on mobile banking (up from 5.3%)
– 32% on ATM/CDM (down from 36.6%)
– 3.4% via banking correspondents (down from 5.3%)
– UPI and YONO were 8.7%, up from 0.8% a year ago

SBI account holders get maximum cashbacks from BHIM

In September, we reported that State Bank of India’s account-holders got the highest share of cashbacks, netting 33.45% of the cashbacks at Rs 35.2 crore. The government had already spent over Rs 100 crore on referral and transaction cashbacks to BHIM users, it revealed in an RTI reply to MediaNama. SBI customers got almost four times as much cashbacks as the next most successful bank, Paytm Payments Bank.

Our SBI coverage here.