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US firm buys SA ATM company

19 August 2009

US-based electronic payment processing services company First Data is to acquire CashAxcess, which offers a range of ATM products and services to the South African corporate and retail market, from local investment groups Mvelaphanda and Venfin for an undisclosed sum.

CashAxcess, which has operated in South Africa since 2005, provides outsourced ATM services to leading banks in the region, including Absa, Capitec and Mercantile.

It also provides ATM delivery and installation, signage, wireless GPRS communication, cash management and replenishment services, ATM monitoring, equipment insurance, sales and marketing and training services, and has 200 ATMs currently deployed across the country.

ATM outsourcing

According to First Data director Estevao Tokata, ATM outsourcing is a growth area within the South African payments market, as banks look to drive more cost efficiencies through their operations.

"Increasingly, banks are concentrating on building and providing core banking services to their customers while working with specialist partners such as First Data to enhance the breadth of payment solutions offered to customers," Tokata said in a statement this week.

First Data operates a global ATM business, with networks in the United States, Asia Pacific and across Europe, and also offers ATM outsourcing and deployment solutions for banks and retailers in more than 17 countries around the globe.

It has operated in South Africa since 1993, offering a full range of payment services to leading banks and retailers.

"We are delighted to welcome the CashAxcess team into the First Data family," said First Data international emerging markets vice-president George Zafirakis.

"The combination of their considerable ATM expertise and knowledge of the local business environment, coupled with First Data's scale and global experience, will ensure we can deliver an enhanced service to clients in South Africa."

SAinfo reporter