Electronic Network Cash Tellers Inc., or Encash, reportedly is in talks with foreign investors to further boost its ATM expansion plans in the Philippines.
Encash is an independent ATM deployer that has deployed 273 ATMs with 139 financial institutions, which include 105 rural banks, cooperatives and other microfinance institutions.
A spokesperson for Encash confirms to PaymentsSource that the company is in talks with foreign investors, but he could not provide names because they are “in an advanced stage as of now.”
“The investment [by the investor] will help us reach a target of 300 ATMs by the end of 2011,” the spokesperson adds.
According to The Philippines Star, Encash had initiated talks last year with World Bank’s International Finance Corp. and Microvest Capital Management LLC. Under Encash’s business model, its partners do not acquire the ATMs. Instead, they manage the cash flow for the units.
However, customers are charged a transaction fee of 88 Pesos (US$2 or 1.4 euros) for using Encash ATMs, unlike ATMs on other networks such as MegaLink and BancNet that charge 8 to 12 pesos.
Encash’s business model depends on deploying ATMs in the rural countryside for customers who previously had to travel for hours and spend more money to just reach an ATM.
Its main partners are thrift and rural banks, cooperative banks and cooperatives, according to the spokesperson.
What do you think about this? Send us your feedback.
