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Electronic Payment and Services (P) Ltd.: Revolutionizing the Indian ATM Industry

CASE STUDY, BANKING & FINANCIAL SERVICES
ET Cases, 18 Pages

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Electronic Payment and Services (P) Ltd.: Revolutionizing the Indian ATM industry

 

“We have developed a highly scalable platform and are working to become the leading ATM outsourcing provider in India, where the number of ATMs is expected to grow from approximately 230,000 today to 550,000 by 2021. At the same time, EPS’ market presence and brand equity in the ATM industry and payments industry is growing at an accelerated rate.”

– Mani Mamallan, Founder, Chairman and Managing Director, Electronic Payment and Services (P) Ltd.1

 

“ATMs represent vital last-mile financial services infrastructure for many in India, especially those living in rural areas; but despite the high dependence on cash, there are currently only 15 ATMs per 100,000 adults in the country, far less than in other growth markets. The sector is growing rapidly thanks to the Indian Government’s recent emphasis on financial inclusion, and the high growth of card-holders as a result of the new Indian card scheme RuPay. We believe EPS is ideally positioned to deliver exciting growth.”

– Udayan Goyal, Co-founder and Managing Partner, Apis Partners LLP2

 

Universal financial inclusion3 agenda gained momentum in India 2005 onwards after the Reserve Bank of India (RBI), India’s Central Bank, drafted the Financial Inclusion Policy. Indian ATM industry has been instrumental in supporting financial inclusion initiatives of India. Hence, there is an increasing need for expanding the ATM infrastructure aggressively to drive financial inclusion at a faster pace. Outsourcing of ATM services brought in the much-needed rigor to the expansion of ATM infrastructure. The Indian Managed Services and Outsourcing industry has been playing a key role in faster expansion of ATM network to achieve the last mile financial inclusion.

Though there are many established players like Tata Communications Payment Solutions Ltd. (TCPSL), Financial Software & Systems (FSS), etc., operating in the ATM Managed Services and Outsourcing space, Electronic Payment and Services (P) Ltd. (EPS) which is one of the youngest players has been playing a key role in supporting the financial inclusion initiatives of India by expanding the ATM infrastructure at a rapid pace. Despite being a start-up, it successfully won the Ministry of Finance (MoF) contract during the initial years of its journey and was the first company to deploy the first live ATM for the project in July 2012 and also stood first among all vendors in single-cluster overall deployment of ATMs for the project in Maharashtra.4 Certain practices/tools that enabled its success in the ATM outsourcing business are Transaction-based Revenue Model, Business Intelligence Tools (Analytics) and EPSecure. Because of its commendable contribution to the ATM industry, it bagged many prestigious awards within a short span of 5 years.

 


 

1 “Intellecap advises EPS in raising Series D investment from APIS partners and in the acquisition of CISB ATM Services”, http://www.intellecap.com/news-and-events/news/intellecap-advises-eps-raising-series-d-investment-apis-partners-and, February 19th2016 (accessed date: May 22nd 2016)
2 “Apis Partners announces investment in EPS”, apis.pe/wp-content/uploads/2016/01/Apis-Partners-EPS-press-release-Final.pdf, January 20th 2016 (accessed date: May 25th 2016)
3 Financial inclusion refers to a universal access to a wide range of financial services at affordable costs to sections of disadvantaged and low-income segments of society
4 “Pushing Limits. Setting Standards”, http://www.electronicpay.in/milestones.html, October 2012 (accessed date: May 20th 2016)

Teaching Note Preview

Electronic Payment and Services (P) Ltd.: Revolutionizing the Indian ATM industry

 

Synopsis

This case study focuses on the entrepreneurial journey of Electronic Payment and Services (P) Ltd. (EPS), in the backdrop of ‘Indian ATM Managed Services and Outsourcing Industry’. Focusing on EPS, it helps understand the nuances of business and revenue model of players in the Indian ATM Managed Services and Outsourcing Industry. The case study gives an overview of the working of the industry in general and that of EPS in particular. Besides, it discusses the challenges faced by the company despite it being a successful startup and suggests ways in which EPS can overcome these challenges. It also gives an opportunity to use theoretical frameworks such as Michael Porter’s Five Forces Model, SWOT Analysis, etc.

Prerequisite Conceptual Understanding/Before the Classroom Discussion/Viewing

• Visit http://electronicpay.in/ – To have a better understanding of the company being discussed in the classroom

• Students should also have an understanding of the following concepts:

  • • Michael Porter’s Five Forces Model
  • • Operations Model
  • • Revenue Model
  • • Business Model
  • • SWOT Analysis

 

• Students/participants should also view the following videos wherein the senior personnel from EPS share EPS’ growth story and also explain the company’s business analytics tool:

  • • “ET CASES Case Suite on ‘Evolution of the Indian ATM Industry and the Role of EPS’ with Richard Canday”, https://www.youtube.com/watch?v=VkxVv5FXM_Q, August 30th 2016
  • • “ET CASES Case Suite on ‘Indian ATM Industry, EPS and Mani Mamallan’s Experience as an Entrepreneur’ with Mani Mamallan”, https://www.youtube.com/watch?v=6owqLBUK2vI, August 30th 2016
  • • “ET CASES Case Suite on ‘Evolution of the Indian ATM Industry and the Role of EPS’ with Prakash Joshi”, https://www.youtube.com/watch?v=SQ7pLwMSCNw, August 30th 2016
  • • “ET CASES Case Suite on ‘Evolution of the Indian ATM Industry and the Role of EPS’ with S. Thyagarajan”, https://www.youtube.com/watch?v=BaUKROVLKmU, August 30th 2016
  • • “ET CASES Case Suite on ‘Evolution of the Indian ATM Industry and the Role of EPS’ with Vidya Mani Mamallan and Manpritt Kkomal”, https://www.youtube.com/watch?v=mIuBIsgPdME, August 30th 2016
  • • “ET CASES Case Suite on ‘Evolution of the Indian ATM Industry and the Role of EPS’ with Aditya Saavant”, https://www.youtube.com/watch?v=wSGykhvgAVA, August 30th 2016
  • • “ET CASES Case Suite on ‘Evolution of the Indian ATM Industry and the Role of EPS’ with Rohit Jain”, https://www.youtube.com/watch?v=tTPBT37knVY, August 30th 2016

 

Mandatory Viewing for the Faculty (provided along with the Teaching Note)

• “Electronic Payment and Services (P) Ltd.: Revolutionizing the Indian ATM Industry – Interview with Mani Mamallan”, July 22nd 2016
• “Electronic Payment and Services (P) Ltd.: Revolutionizing the Indian ATM Industry – Interview with Prakash Joshi”, July 22nd2016

 

Suggested Reading for the Faculty

• Mark W Johnson, et al., “Reinventing your Business Model”, Harvard Business Review, December 2008 – To examine the elements of a successful business model

 

Case Positioning and Setting

• This case study can be suitably used for MBA Program in Banking and Financial Services – To understand the nuances of operations, revenue and business model of players in the Indian ATM Managed Services and Outsourcing Industry
• This case study can also be used for MBA Program on Startups and Entrepreneurship – To discuss the entrepreneurial journey of Mani Mamallan, the Founder, Chairman & Managing Director of EPS
• This case study can also be used in Management/Executive Development Programs – To understand the dynamics of the Indian ATM Managed Services and Outsourcing Industry

 

Assignment Questions

I. Trace the emergence of new business opportunities for the ATM Managed Services and Outsourcing industry vis-à-vis Government of India’s financial inclusion initiatives.
II. Based on the information provided in the case study, analyze EPS’ business model. How significant has been the role of leadership in building a successful business in the ATM Managed Services and Outsourcing industry?
III. ..............

 

Preamble to the Case Analysis

This case study focuses on the entrepreneurial journey of Electronic Payment and Services (P) Ltd. (EPS) in the backdrop of the Indian ATM Managed Services and Outsourcing Industry. The discussion of the case study is structured to capture the business as well as revenue models of EPS while also highlighting the dynamics of the Indian ATM Managed Services and Outsourcing Industry. The discussion began with an analysis of the industry in general and then narrowed down to EPS, one of the prominent players in the industry. Thereafter, the discussion focused on EPS’ growth story and concluded with suggestions for the company in its way forward. The main discussion points have been captured in Exhibit (TN)-I..........

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Abstract

This case study focusses on the entrepreneurial journey of Electronic Payment and Services (P) Ltd. (EPS) – one of the startups in the Indian ATM Managed Services and Outsourcing Industry. Industry veteran, Mani Mamallan, also known as ‘The Architect behind Indian ATM Systems’, founded EPS in 2011. Supported by the vast industry experience of its founder and other members of the leadership team alongside the financial inclusion initiatives of the Government of India, EPS grew rapidly and its revenues increased from INR8 crore in FY2013 to INR170 crore in FY2016.

Although EPS achieved quick growth, it is faced with the challenge of coping up with this fast-paced growth. What measures can EPS take to overcome this challenge? Further, EPS is led by the vision to be the leading provider of technology solutions in the Retail Banking & Payments System. What are the challenges faced by this young enterprise in its path to achieve its vision and how can it overcome these challenges? This case study focuses on these dilemmas and debates on the roadmap for the company.



Pedagogical Objectives

  • To study the dynamics of Indian ATM Managed Services and Outsourcing Industry
  • To understand EPS’ operations, revenue and business model in being one of the promising players of the Indian ATM Managed Services and Outsourcing Industry
  • To identify the challenges faced by EPS in its vision of becoming a leading provider of technology solutions in the Retail Banking & Payments System

Case Positioning and Setting

  • This case study can be suitably used for MBA Program in Banking and Financial Services – To understand the nuances of operations, revenue and business model of players in the Indian ATM Managed Services and Outsourcing Industry
  • This case study can also be used for MBA Program on Startups and Entrepreneurship – To discuss the entrepreneurial journey of Mani Mamallan, the Founder, Chairman & Managing Director of EPS
  • It can also be used in Management/Executive Development Program – To understand the dynamics of the Indian ATM Managed Services and Outsourcing Industry



This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
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