White-label ATM firm India1 Payments’ CEO steps away amid banktech foray

Core Insights - India1 Payments is transitioning leadership and pivoting towards digital services by launching a banking technology arm to counter sluggish ATM growth in India [1][12] - K. Srinivas, the long-time CEO, is stepping back from daily operations but will remain as executive vice-chairman to guide strategy [2][15] - The company operates over 15,000 ATMs, holding a 40% market share among white-label operators and 53% in transactions [4][5] Company Overview - India1 Payments is the largest white-label ATM operator in India, with a significant presence in semi-urban and rural areas [5][10] - The company was established through a partnership with ICICI Venture and has grown significantly since the Reserve Bank of India opened the white-label ATM space in 2013 [6][7] - In FY25, India1 reported revenues of ₹670 crore and profits of ₹35 crore, benefiting from recent policy changes regarding interchange fees [7][8] Market Dynamics - India has approximately 250,000 ATMs, with around 36,000 being white-label machines [5] - The company faces challenges as banks are reducing ATM deployments due to a shift towards digital payments, despite high cash circulation [11] - India1 aims to expand its ATM network to 20,000–25,000 ATMs in the next five years [9] New Initiatives - India1 is launching a fintech arm named Paysis, targeting smaller banks that lack the infrastructure for transaction processing [12][13] - Paysis is already servicing rural co-operative and small finance banks, managing switching and transaction services [14] - The company plans to sign up 200 co-operative banks in the next two years, capitalizing on the vast market of over 90,000 rural banks and co-operative credit institutions [15]