ATM Franchise

Every individual wants to multiply his investments and get a good return on them. Ideally, you always want your investments to be your steady source of additional income. Now if you own a commercial property then you have a good chance to get a lucrative return on your investment and get a steady monthly income. Generally, people, who own a commercial property open a shop and do business or else they rent out the shop to someone else. Doing your own business has its advantages but it comes with associated risks of running a business. The concept of ATM Franchise has come as an option where you can have your own business without much risk and at a minimal cost. Setting up an Automated Teller Machine (ATM) is a very fast-growing investment option in India.

ATM Franchise

With a growing population across all Indian cities, the need for ATMs is also increasing as getting basic access to financial services has become an absolute necessity. Recently 7 NBFCs have been given permission by the RBI to open white label ATMs. White label ATMs are the ATMs which are operated and owned by Non- Banking Financial Companies (NBFCs).

RBI has mandated all the participating NBFCs to open a certain number of white label ATMs out of which most are to be opened in rural areas and only a few are allowed in semi-urban and urban areas. For example, one of the NBFC called Tata Communications Payment Solutions has been mandated to open 15,000 white label ATMs out of which it will be installing 10,000 in rural areas and 5,000 in metros and urban cities.

On similar lines Vakarangee – A Mumbai based NBFC was instructed to set up 15,000 ATMs over a period of 3 years maintaining the 2:1 rural to urban ratio.

How to Set Up an ATM

If you own a minimum 25 square feet of lobby space or 50 square feet of a shop in an area which needs an ATM or is located in a busy market area, then ATM Franchise is a great business idea.

Indicash – one of the premier and fast-growing companies in opening white label ATMs in collaboration with Tata Communications Payment Solutions- offers you a lucrative business opportunity under its franchise scheme.

• Under this scheme, the maintenance, electricity charges and security system required for the ATM is looked after by Indicash and TCPSL while you just have to use your commercial property as leverage for opening an ATM
• You will earn by the number of transactions that will happen in your ATM
• The charges are Rs. 5 for non-banking transactions like checking balance, mini statement, etc. and Rs. 15 for every financial transaction like a cash withdrawal
• The amount you will receive will also majorly depend on the number of footfalls in your ATM
• The more customers walk-in to your ATM, the more you earn
• Any such ATM starts earning profitably when a minimum of 100 transactions occur in a day

Difference between an ATM Franchise and Renting a Commercial Space

Renting out commercial space for ATMs will give you a monthly fixed rent but you will have to bear the expense of giving security deposit at the beginning which is 2-3 Lakh. On the other hand, if you take an ATM franchise you will not receive monthly income and also the maintenance of operating the ATM is borne by you. But under franchise scheme, if the location of your ATM is at a busy place and the daily footfall is huge, then opting for an ATM franchise is profitable.

Let us consider the following scenario: Footfall in your ATM is good and around 200 transactions are made every day out of which 50 are non-financial transactions and 150 are cash withdrawals so you will approximately earn Rs. 2,500 per day and approximately Rs. 75,000 a month. Thus subtracting the probable rent of Rs. 25,000 which you might have got from renting out your commercial property you will earn a net profit of around Rs. 50,000 per month.

How Renting a Commercial Property for ATMs Work

Like TCPL, Prism Payment Solutions is one of the leading companies in India in opening up ATMs in areas which are in need of ATMs and have good visibility. Apart from letting out the entire commercial space for an ATM, there is another option called the ATM-in-a-shop.

• Under this concept, you can rent a small portion of your commercial property for opening an ATM kiosk while you continue to use the rest of your commercial space for your own business
• Under this scheme of renting out commercial space, you will get the rent from the NBFC and the rent will depend on the location of the ATM and the city in which it is located
• Generally, a monthly rent of Rs. 25,000 to Rs. 30,000 can be expected through such a proposition

Also, kindly note as you are renting the space and not opening an ATM Franchise, you will have to pay a certain sum of money as the security deposit to the NBFC.