First Data, a major US-based electronic payment processing Services Company is to acquire a South African Company CashAxcess, which offers a range of ATM products and services to the South African and the entire African corporate and retail market, from local investment groups Mvelaphanda and Venfin for an undisclosed sum. CashAxcess, which has been in operation since 2005, provides outsourced ATM services to leading banks in the entire 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.
According to the director of First Data; Mr. Estevao Tokata, ATM outsourcing is a growth area within the South African and the entire payments market, as banks look to drive more cost efficiencies through their operations.
It was noted that 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. 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 been operating in South Africa since 1993, providing a full range of payment services to leading banks and retailers. The president of First Data in the emerging markets was quoted as: “We are delighted to welcome the CashAxcess team into the First Data family.” He added on that 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 the delivery of an enhanced service to clients in South Africa and the entire of Africa.