Brown Label ATM – An Introduction

There are about 90,000 ATMs in the country, all owned by banks. Brown label ATM’s is a model where hardware and the lease of the ATM machine is owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM.

The brown label ATM model introduces two primary benefits. One, the banks will not have to lock their funds in a fast depreciating asset since the capital investment would be undertaken by the ATM vendor. Second, the vendor gets a fee for every transaction from the bank whose ATM card is being used. There is an incentive to ensure efficiency in terms of usage.

2 people like this post.

Be Sociable, Share!

    Pin It on Pinterest

    Shares