E-payments processor Euronet Worldwide has inked an ATM outsourcing deal with China's Postal Savings and Remittance Bureau (PSRB), the fifth-largest financial institution in the country.
Euronet says it has established a joint venture to support its new Chinese operations. The JV, in which Euronet holds a 75% stake, has been formed with local firm Ray Holdings which has offices in key Chinese markets and business relationships with leading banks and telecom operators.
PSRB, the savings arm of the China State Postal Bureau, provides basic deposit and remittance services in 30,000 branches across China, servicing 270 million customers and currently has over 6000 ATMs.
Under terms of the agreement, Euronet China will initially deploy 90 ATMs across Beijing, Shanghai and the Guangdong province and provide day-to-day outsourcing services for PSRB as a pilot project. If the trial is successful, Euronet China will take over PSRB's existing ATMs and install new units.
Euronet says it has set up a state-of-the-art data processing centre in Beijing from which it will drive PSRB's ATMs and has already gone live with the first unit. The remaining terminals are scheduled to be rolled out over the next several months.
Daniel Henry, president and COO, Euronet Worldwide, says: "Though a new market, China's rapidly growing economy and ongoing banking reforms to build a modern banking system provide us with an excellent opportunity to assist domestic and foreign-funded banks to expand and manage their ATM networks."