Sbi Plans Jv With Elavon And Visa For Pos Terminals

State Bank of India (SBI) has selected US-based Elavon Incorporation and Visa International

for a joint venture to facilitate payment through debit or credit card at the retail outlets through swipe machines (or merchant acquiring business) on a pan-India scale, with metro, urban, semi-urban and rural centers. Elavon US is a wholly-owned subsidiary of US Bancorp and a leading global payments provider. US Bancorp is the holding company of US Bank, the fifth-largest bank in the US.

The terms of arrangement are still being worked out but RBI has already given its approval for the setting up of a wholly owned subsidiary by SBI in the name of SBI Payment Services.

SBI had floated Request For Proposal (RFP) for selection of joint venture (JV) partner for merchant acquiring business in 2009. Then the bank had reduced the list of candidates to three candidates Visa, Royal Bank of Scotland (RBS) and Global Payments. After putting in place a core-banking solution, SBI has been in a hurry to acquire leadership position in electronic networks as well.

The business would include acquiring bank identification numbers (BINs) from the schemes, as well as managing services for point of sale (PoS) terminals among others.

The managed services would include installation of POS terminals at customer locations, their replacement, merchant training and maintenance, etc.

Advantages:

Bank plans to enable very low-value transactions through pre-paid cards.

The increased acceptance of its debit cards as SBI has issued close to 7 crore debit cards to its account holders. But these cards are largely used for withdrawing cash from automated teller machines. Instead of withdrawing cash only account holders would also be able to make payments through cards, thus the bank will generate huge savings in cash handling and maintaining cash balances.

Last year, ICICI had sold its POS terminal network to First Data Corporation for $80 million (around Rs 365 crore). While SBIs ambitions are bigger,

ICICI Bank

has been an early mover and had already had an installed base of 1.5 lakh machines at the time of the sale.

By next financial year SBI plans to place about one and half lakh POS terminals for debit and credit card payments across India and six lakh POS terminals in the first five years of its operations.

The State Bank Group currently has over 18,000 ATMs across India and has issued over 60 million debit cards.

POS terminals have become big business due to two recent developments:

RBI has said it will allow small cash withdrawals through such POS terminals.

RBI has said it would encourage banking correspondents to increase financial inclusions.

by: Dealfor Loans

POST COMMENT

Seeking Atlanta Inexpensive Motels? Use These Plans On How To Score Awesome Packages Searching For Atlanta Reasonable Motels? Follow These Plans On How To Score The Cheapest Deals Want Atlanta Reasonable Suites? Use These Plans On How To Get The Cheapest Accommodation Rates Costa Rica Dental Plans How To Fool-proof Your Investment Plans Act Makes Individual Plans More Lucrative Medigap plans – Choose the right one Lean To Shed Plans - Three Reasons To Construct A Lean To Shed Potting Shed Plans - Diy Blueprints Nesting Box For Your Chicken Coop Building Plans Utility Table Plans - Here is What I Found ! Dutch Oven Table Plans - Quick Tip ! Thinking Of Booking Hot-lanta Cheap Motels? Use These Plans On How To Locate The Best Discounts