[IMGCAP(1)]
NCR Corp.'s recent success in selling ATMs to Nextel Mexico, one of Mexico's leading cellular-telephone operators, represents a change in philosophy by U.S. companies developing products to meet the needs of customers who reside primarily in cash-based societies.
Starting last March, Mexico City-based Nextel began a pilot to test the NCR SelfServ32 full-function ATM at its customer-service centers in Mexico City, Guadalajara, Monterrey and Mexicali.
The pilot is now complete, and Nextel plans a rollout of the NCR's SelfServ32 ATM to 24 additional cities and 100 locations by yearend, Ricardo Saenz, marketing and deployment manager for NCR's Financial Systems Division in the Caribbean and Latin America Saenz, tells ATM&Debit News.
Dayton, Ohio-based NCR configured the SelfServ32 to accept debit and credit cards and bank notes for payment of Nextel bills, which compliments the lifestyle of Mexico's residents, Saenz says.
"Most everyone pays with cash, and they pay their bills on the last day the payment is due because they want to hold onto their cash," says Saenz, adding few individuals in Mexico and Latin America pay by check. The SelfServ32 also instantly credits the payers' Nextel account, and the machine dispenses change in coins, Saenz says.
"We handle 60% cash payments, and the rest with credit and debit cards at a low operational cost," Juan Enrich, Nextel Mexico chief financial officer, says in a statement. "NCR's integrated solution has helped us transform our business and increase market share in Mexico."
Nextel Mexico also awarded NCR a managed-services contract that provides hardware and software services, remote system monitoring and round-the-clock help-desk support, Saenz says.
NCR introduced the SelfServ ATMs in January 2008 (ADN, 1/31/08).
The SelfServ32 represents a structural change in the way consumers pay bills in Mexico. On the 15th and 30th of each month—paydays in Mexico—consumers traditionally visit bank branches to pay utility bills, but they often must wait in long lines. With the new SelfServ, the lines either are much shorter or nonexistent. The machines also free up Nextel employees to do other things inside the office.
The Nextel agreement opens the door for additional sales opportunities for NCR in Mexico and the rest of Latin America, Saenz says. ATM&Debit News has learned that NCR is close to signing a contract with one of Nextel's competitors in Mexico.
In addition, the deal represents a change in philosophy for NCR and other companies involved in the payments business in countries where cash is still king, says Nicole Sturgill, research director for delivery channels at TowerGroup Inc., a Needham, Mass.-based consultancy owned by MasterCard Advisors.
"In the past, banks and technology providers have tried to push consumers toward the use of traditional banking products rather than meet them halfway with the technology to facilitate business in a way that they want to achieve it," Sturgill says. "We've seen a shift in philosophy over the last couple of years, and we will see more advanced-function ATMs and kiosks to facilitate transaction types like bill payment, check cashing and peer-to-peer transfers in the future." ATM
