VOLUME III - 2017

T T L

AGS News Jan 2017 3

Moving Ahead With The Country Or Moving The Country Ahead?

FOREWORD

Dear colleagues,

The theme of this month’s newsletter (Alternate Payment Ecosystem) is special to me, simply because it is a concept that has been on my mind for a while, and one that our country is finally ready to embrace in its full essence. Way back in 2002, when we introduced intuitive ATM machines to the Indian consumers, they welcomed it whole heartedly. This wasn’t because the machines were novel or the technology was intriguing, but because it solved a core problem for the regular bank user. It brought convenience and flexibility to the hands of the consumer. And that is exactly what the citizens strive for, till date.

Although cash is still king, ‘Alternate Payments’ is the new wave that’s transforming the Indian ecosystem. Government of India’s recent initiatives like Jan-dhan Yojna, UPI and the latest demonetisation drive are bold moves toward encouraging the people of India to look at digital platforms of transacting, reinforcing our belief in creating a seamless payment solution system that continues to put convenience and flexibility in the hands of the consumer.

Demonetisation has also revealed few important lessons for us: 1. Cashless options are many and easy2. Change is the only constant3. We can adopt change

The Indian landscape has changed rapidly over the last ten years and AGSTTL wants to be the Fintech partner for the future Digital India. With increased penetration of mobile and internet especially in the remote areas, more citizens will be able to access e-payment platforms. Micro-payments through mobile will be the key to fulfill the dream of financial inclusion and digital payments will no longer be restricted to the tech savvy, but continue to influence and excite citizens across all sections and geographies.

At AGSTTL, we have consistently been working towards developing an integrated network of products and solutions that translate into a cohesive structure. The government’s initiatives including UPI and BHIM are bridging the gap between supply and demand. Simultaneously, at AGSTTL, we are working towards integrating the latest technology into the payment system. From ATMs to Switch, we have been bringing the best-in-class technology to India by partnering with international leaders, the latest being our partnership with ACI Worldwide bringing Universal Payment Capabilities in the most Capex efficient manner to offer newer opportunities for banks and merchants. You will also be happy to know that Mastercard has launched its world’s first Masterpass QR code on our ‘Ongo’ mobile wallet and mVisa has partnered with us to power 1000+ TABCabs in Mumbai.

Mobile banking will continue to play a central role. ‘Ongo’ has been designed to eliminate the prevailing issues of micro-financing and daily transacting. This futuristic product has a well-integrated and structured format that includes Cash interaction (Ongo ATMs), Transit facilities (Ongo Fuel, Ongo enabled public transport vehicles, & RFID systems), Retail facilities (Ongo mPoS and Tap & Pay) and Remote payment facilities (RemotePay) as of now.

Fintech, indeed, is an evolving industry and in this dynamic space, being an end–to-end solution provider never really ends. There are always new loops to close, technologies to incorporate and newer disruptive players to look out for. That means we have to foresee and stay ahead at every stage.

There is immense potential for Fintech to offer, and for a nation that’s just at the brink of the Alternate Payment Ecosystem, opportunities are galore. As I always say, India is a vast economy and there is something for everyone here.

Ravi B. GoyalChairman and Managing Director,

AGS Transact Technologies Limited

Intelligent Cash Deposit (iCD), a self-service bulk cash deposit solution is designed to secure daily cash deposits.

iCD reduces back o�ce administration costs and saves time on manual counting and veri�cation. The deposited banknotes are processed securely with instant receipt generation, reducing the risk of robbery, preventing shrinkage and reducing cash di�erences.

With this solution a retail enterprise would have greater control of its cash handling processes.

Future Retail, India’s leading retailer operating multiple retail formats in both value and lifestyle segment has recently installed iCD solution at some of its Big Bazaar Retail outlets to control its cash handling processes.

“We have installed Intelligent Cash (iCD) deposit machines on a pilot basis 6 months ago for daily cash deposits and have now gone live at some of our Big Bazaar outlets. Earlier, daily cash handling was very labour intensive with multiple counts, counterfeits combined with poor visibility and control of cash. With this solution, our cash handling process is streamlined as we can centrally monitor daily volume of cash deposited. We have better control of physical �ow of cash”.

- Mr. Dinesh Maheshwari, CFO, Future Retail Limited

For information/demonstration, contact: Mr. Surya Singh | Email: surya.singh@agsindia.com

Cash Deposit Solutionfor Retail Enterprises

Instant receipt generation for each

deposited transaction

The user can make small deposits all

day, thus reducing cash exposure

within the cash drawer

All transactions are automatically

registered and authenticated

Reduces shrinkage of banknotes as

there is a better control of the physical

�ow of cash

4 AGS News Jan 2017

TABLE OF

Company Updates

AGS Transact Technologies Limited (AGSTTL) In Media

Cover Story: Exploring The World Of Alternate Payment Ecosystem

From Bills & Coins To Bits & Cards

AGS Transact Technologies Limited (AGSTTL) At Events

Applause All The Way

Inside AGS Transact Technologies Limited (AGSTTL)

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ManufacturingFacilty Landscape

ASSEMBLY UNIT AT DAMAN

CONTENTS

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2. AGSTTL receives orders for PC 280 from three leading banksCity Union bank, Syndicate bank & Vijaya bank placed orders for AGSTTL‘s PC 280. It is a compact and robust machine that offers intelligent safety features, flexible architecture and a user-friendly interface.

1. AGSTTL ventures into Transit Business

After a successful record of being a leader in the Banking and Retail sectors, AGS Transact Technologies diversified into

Transit Business in September 2016. The company is leading the execution of SmartCity and Toll projects within the space.

Company Updates

5. Reliance Jio partners with AGSTTL for IT support

AGSTTL provided the highest service levels as per agreed SLA to manage and ensure smooth functioning of Remote

Support for Reliance Jio retailers and distributors at Reliance Corporate Park, Mumbai.

3. Union Bank of India repeats order for Genuine Laurel K8

Union Bank of India once again chose the credible and efficient note sorting machine provided by AGSTTL for their currency chest.

7. IDBI Bank buys Recycler Machines

The recently purchased AGSTTL recycler machines will be deployed across all IDBI bank branches.

4. AGSTTL receives orders from Canara BankCanara Bank placed an order for Note Sorting machines in September 2016 for their Kolkata circle followed by an order for Genuine Cashsort2 in October 2016, to enable parallel authentication and classification of banknotes.

6. UCO bank procures Currency Sorter machines from AGSTTLAGSTTL won UCO bank tender for currency sorter machine - Genuine Laurel K4 for their currency chest.

“AGSTTL in partnership with ACI will collectively address a critical need impacting the Indian financial services and retail markets to develop a ‘one-stop-shop’ platform for payments, fraud and transaction management capabilities.”

- Ravi B. Goyal, Economic Times, 15.11.2016

Being India’s only end- to-end payment solutions provider for banking and other sectors, we excel in manufacturing and deploying ATMs, outsourcing services, cash in transit and vault services, transaction switch & software to back it. In fact, the daily transaction business of our subsidiary Securevalue India Limited is about Rs. 750 crores.”- Ravi B. Goyal, Huffington Post

“

We have state-wise control rooms that closely monitor the route of each SVIL van and call the driver almost every half an hour. As a security protocol, none of our vans follow the same route every day. The manager decides the route on the spot.”- AGSTTL and SVIL in Deccan Herald, 22.11.2016

“Ongo app is apt for commuting via Autos/ Taxis.”- Mid-day, 19.12.2016

“We’ve installed elaborate security measures like firewalls, server clamping, ATM shutdown to ensure our ATMs are 100% secure”- Ravi B. Goyal, TOI, 30.09.2016

“We have pressed the entire team of 1,000 engineers into service round the clock to be able to reach maximum number of ATMs at the minimum amount of time.

- AGSTTL in The Economic Times, 14.11.2016

“Millennials are poised to change the economy with their affinity towards technology.. They are turning to opportunities that offer maximum returns and convenience.”

- Pratik Seal, The Week, 21.08.2016

“MasterCard has just launched its solution - Masterpass QR service- which debuted in Ratnakar Bank-partnered Ongo payment wallet.”- Times Of India, 05.12.2017

“We believe that growth in the ATM industry in the country is promising with many banks issuing orders to install ATMs – 15,000 of which would be in FY 2016-17.”-Ravi B. Goyal, DNA, 20.09.2016

We have seen a huge surge in demand. What I used to sign up in a day with merchants has gone up 7 or 8 times after November 8.”- Deepak Bhutra, Rediff.com, 02.12.2016

“Our recent campaign called KuchAchhaKaro involved collection of donation items for underprivileged children and a visit to an old age home and was a phenomenal success.”

- Capt. Partha Samai,

India CSR, 12.12.2016

“ Marking its foray into taxi category, mVisa, a Quick Response (QR) code-based mobile solution by Visa, will now support payments to over 1,000 TABCab taxis powered by Ongo.”

- The Hindu Business Line, 1.12.2016

in

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AGSTTL MEDIA

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Currently restricted mainly to the urban cities of the country, Alternate Payment as a concept is quickly gaining acceptance

across all sections of the society due to its versatility and ease of use. But what are ‘alternative Payments’ and what does it mean for a country like India? A quick online search reveals that Alternate Payment Systems refers to any form of Payment that is an alternative to credit cards, which is the conventional form of transaction globally. But the Indian economy is different!

In India, cash has single handedly dominated the Payment Ecosytem (with over 90% volume of transactions), and any form of Alternate Payment would essentially mean negating the use of ‘cash’.For a cash based economy, this means a paradigm shift.

India is one of the most cash-intensive economies of the world, with a cash-to-GDP ratio of close to 12% (as of 2013), which is 5 times that of Sweden, a country known for its electronic Payment friendliness.

Over the last decade, we have witnessed an explosion of various digital Payment outlets and the trend is only increasing. Many government initiatives, along with RBI’s support, is encouraging people to embrace Alternate modes of Payments and diminish the use of cash exchanges. From making high value corporate transactions mandatory through RTGS and NEFT, to introducing 24 crore people into the banking system through the Jan Dhan Yojana campaign, the country is slowly but surely marching towards the dream of a Digital India. Implementation of the JAM Trinity (consolidation of Jan Dhan Yojana, Aadhar and Mobile) & Direct Benefit Transfer (DBT) Scheme; permitting non-banks and financial institutions to facilitate the digital movement; and the recent demonetisation of high-value currency are all significant reforms indicating the government’s intention of discouraging paper based transactions.

The use of ‘plastic’ was the first wave of transition when debit cards were introduced in 1998. Although credit cards existed before that, Indians have always

been wary of adopting it and this trend has been changing only in the recent past. Today there are almost 130 million cards in circulation, both credit and debit. However, usage of debit cards at ATMs still account for 88% of the total volume and around 94% of the total value of debit card transactions. Compared to this, transactions at PoS terminals account for only 12% of volume and 6% of value of transactions.

After cards, mobile turned out to be the next big revolution. The demand for smartphones is increasing faster in India than any other country in the world. With mobile penetration and better access to internet, more citizens are getting onto the digital platform to conduct regular transactions. According to TRAI, the total wireless subscriber base stood at 997 million at the end of September 2015, while mobile banking has seen rapid growth over last few years with number of transactions rising from 4.72 million in November 2012 to 27.11 million in September 2015.

As one of the largest end-to-end Payment providers in India, AGSTTL has been at the forefront of these technological changes and instrumental for introducing new forms of transacting in the country. At a time when cash was the only medium of transacting, we introduced ATM as the ‘Alternate’ technology to traditional banking. Over the years, we also introduced PoS machines, Payment gateways, prepaid cards and RFID enabled systems. Today, our priority is to ensure the platform for futuristic products are established. Pioneering disruptive technologies for Indian consumers, the recent tie up with ACI Worldwide introduces ‘Universal Payment Capabilities’ to streamline the entire network for banks and merchants with enhanced security features (PRM- ACI Proactive Risk Manager) on a Capex efficient model. Our digital Payment platform- Ongo is also being developed to address the much ignored ‘micro-Payment’ space and incorporate a larger section of the society onto the online Payment platform.

Rohit Gupta was just mildly affected by the recent demonetisation drive, and so

was his family. A long term user and advocator of electronic payment, he pays

all his utility and professional bills via the online mode. Under his guidance, his

family has also adopted a less-cash dependent lifestyle. His wife, Nirupama, now

pays the maid and house staff through mobile banking and was surprised to see

the local vegetable vendor finally accepting payment on a PoS machine. His kids

use digital wallets for travel, shopping and recharges, while the driver gets a

prepaid card for fuel and daily food allowances. This is the new age Indian family!

‘New age payments like virtual cards, sound waves and one-touch pay are also being explored.’

‘Today, there are almost 130 million cards in circulation, both credit and debit.’

‘India is one of the most cash intensive economies of the world, with a cash- to-GDP ratio of close to 12% (as of 2013), which is 5 times that of Sweden, a country known for its electronic payment friendliness.’

The government’s latest UPI technology taps into this vast ocean of new users and strives to make financial inclusion a reality. A natural progression of the smartphone growth is the evolution of digital wallets like Ongo. More merchants are getting integrated to the mobile banking apps and e-wallets that are predicted to significantly replace real wallets in the near future.

Interestingly, newer technologies continue to redefine the Alternate Payment Ecosytem. Banks are consistently working on and incorporating contactless Payments using near field communication (NFC), push Payments on QR or bar code scanning to attract consumers.

New age Payments options like virtual cards, sound waves and one-touch pay technolog y are also being explored to improve user convenience and encourage more people to switch from traditional style of transactions. However, a strong banking know-how and robust infrastructure will be critical for long term sustenance.

COVER STORY

VOLUME III - 2017

Net net, as a nation we have the infrastructure and processes in place to leapfrog into a digital system, but the real challenge will continue to be awareness and familiarity with e-payments on the part of consumers.

COVER STORY

AGS News Jan 2017 11

“Our ancestors traded in barter. Our forefathers exchanged in gold & silver.The past few generations got introduced to paper money while our children are growing older (and accustomed) to electronic payments. So where do we go from here? One can only guess.”

Truly, the story of money has been evolving like none other. Much has changed in 5 years than what happened in 5 decades

together. The spurt of electronic options for conducting day to day payments is transforming the way the nation is transacting. And the recent demonetisation is compelling people across the country to embrace digital modes of payment and forge familiarity with it. Interestingly, it took only two factors to facilitate all this- Internet and Smartphones. The beautiful convergence of these two technologies has disrupted all other sectors like banking, retail, hospitality, travel etc.

As a consumer, it is interesting to witness how technology is evolving periodically and impacting our lives. Today, we have internet banking, debit/credit/prepaid cards, mobile banking and yes, wearables. If not much in India, Apple and Samsung Pay changed the consumer purchase pattern in the west, following which, companies are incorporating retail and payment features on wearables like smartwatches and fitness bands. The emergence of Nymi bands, Samsung Gear S3, Xiomi’s MiBand are examples of digital consumerism. But as we are just getting accustomed to the current set of ‘innovative products’, newer technologies like crpyto currency, soundwave technology and blockchain are already threatening to wipe them off before our eyes. Versatility in use and minimal time spend seem to be the theme on which these innovations are introduced. For all we know, in the future we could be shopping at retail stores with thumbprint checkout or voice commands.

Indeed, demonetisation triggered a complacent nation to wake up and move on with the ways of the world. Overnight, local market vendors, paanwallas, sweetmeat stores who have all been resistant to change are proactively offering card or wallet payment options. Grappling

Pratik SealGroup CMO, AGSTTL

TO B TS&FROM

LLS INSCCARDS

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with this new change, a small fraction of the market still refuses to accept digital payments. However, just as e-commerce rattled the world of brick and mortar brands, businesses (both small and big) will have to adapt to electronic payment and prioritize consumer convenience for a sustainable future.

But where does that place our dear old ‘cash’? Does this mean total wipe out or reinvention for the paper currency? Or is all this hype about digital money a passing phase while cash stays in hibernation?

For a country like ours, cash will continue to be sacred. India as a nation will take its due course of time to elevate every single individual to the Alternate Payment Ecosystem. We have transacted in cash for so long, that for some, getting familiar with these new forms of payment may not just be cumbersome but downright unwanted. Only a few have warmed up to the idea of transacting with e-money. Merchants and small businesses prefer to deal in cash than invest in machines and pay interest charges on their marginal profits. The ones who do are notably concentrated in metros and tech savvy cities. For the vast population that resides in rural and semi-urban areas, access to digital payments by virtue of having a smartphone will pose another set of challenge. Inspite of mobile and internet penetration, these areas are still battling for basic amenities like electricity and e-payment avenues. In these far flung areas, cash may still not lose its place under the sun.

Having said, our economic diversity and disparity is not just the reason for cash to survive. Transacting at the micro level requires a highly planned infrastructure and digitally savvy citizens which many nations haven’t been able to accomplish as yet. A peek into the some of the advanced ‘cashless’ economies like Sweden and Denmark reveals they aren’t truly 100% cash-free. India, for one, has a long way to go.

We may adopt all the new options that Fintech companies toss at us but for daily transacting, cash will continue to be the important choice. We are in a transition phase. But as we sit at the crossroads of technological advancement and economic development, digital mode of payment and cash will continue to co-exist, and presumably, even flourish simultaneously.

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Applause All The WayAGSTTL At Events1. Ongo participates in Jan-Dhan Mela, DelhiIndia’s leading alternate transaction solutions provider, Ongo marked its presence at the Digi-Dhan Mela, a Government of India initiative held recently in Delhi. Themed ‘Go cashless, Go Digital’, the exhibition provided digital payment enablers including ONGO, the platform to showcase their intuitive solutions to dignitaries like the Minister of IT, Mr. Ravi Shankar & Minister of Science and Technology, Mr. Harsh Vardhan, as well as consumers.

Driven by the passion to excel and exceed, we continue to outdo our past performances, winning recognition at various prestigious platforms during this process in 2016.

Disruptive Innovation of the year India’s most revolutionar y product in the space of Cash Management - iCD was recognized as the best ‘Disruptive Innovation of the Year’. AGSTTL won this award for providing the most innovative technology solution within the Financial Services Categor y at The Disruptive Tech and Innovation

Summit & Awards 2016, held recently in Bengaluru.

Best In-House MagazineAGS News, our in-house newsletter bagged two prestigious awards each for its Content & Design, at the 56th ABCI Awards held recently in Mumbai.

Best In-House Newsletter AGSTTL won two prestigious awards at the 7th CMO Asia Awards held in Singapore including the ‘Best in-house Magazine’.

AGSTTL’s unique cash management solution- intelligent Cash Deposit machine(iCD) combined with Cash-in-transit services of SVIL, was recognised as the most ‘Innovative product of the year’.

2. AGSTTL representatives speak at discussion forums Over the last few months Capt. Partha Samai, Sr. VP and Group Head HR, and Pratik Seal, Group CMO, have created a buzz at prestigious knowledge sharing platforms, sharing stage with industry influencers.

While Pratik shared his thoughts on ‘Changing Communication Paradigm – Engaging with a Digital Native’ at the 3rd edition of CII Marketing Conference in Pune along with other panelists from esteemed companies like LinkedIn India, Deloitte, etc., Capt. Samai, shared his insights across various HR platforms like CII HR Conclave 2016, Ahmedabad; 15th Bangalore HR Summit 2016; Bridge 2016- HR Summit and Timesjobs High Tea Session on HR’s role in delivering value to business and future of workforce, trends & changing business dynamics in addition to advising younger generation on making a successful career in the retail technology sector.

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Inside AGSTTL

Our HR team leaves no stone unturned to make sure all 8,500+ employees across our offices pan India have some fun @ work.

Employees enjoying themselves with a game of Carrom at our DNA office

At AGSTTL challenges aren’t only work related

Independence Day celebrations across all our offices

Spreading love and comfort with the elderly

Saluting the sacrifices this Republic Day

Rangoli making during Diwali celebrationsSharing joy at old age homes in Nerul

End-to-End DigitalPayment Solutions

Deviceless Solutions

mVISA MASTERPASS QR PAYMENT GATEWAYONGO WALLET

Value-Added Services

REWARD CARDPREPAID CARDCASH@POS

Device Based Solutions

Email: info@indiatransact.com | Contact No.: 897 6003 000

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