Euronet Germany, (a division of Transact Elektronische Zahlungssysteme GmbH), a wholly owned subsidiary of Euronet Worldwide Inc. (NASDAQ: EEFT), announces a new ATM outsourcing agreement with Ikano Bank GmbH.
Euronet will provide outsourcing services for the Ikano Bank ATMs, which are exclusively located in IKEA Deutschland GmbH & Co. KG stores throughout the country. This is the first outsourcing agreement for Euronet in Germany, Euronet's second largest ATM market.
In addition to providing outsourcing services in the established 48 locations, the contract allows Euronet to operate any additional ATMs that may be deployed in new IKEA stores in the future. The roll-out of the new ATMs has started and will be complete before the end of 2011. The new, state-of-the-art devices are equipped with fully loaded functionality, including: 2D bar code reader, thermal receipt printer, contactless card reader for mobile wallet payments, extra cassettes for coupons to be dispensed with cash and the potential to add an additional 42 inch digital advertising screen above the ATM. Additionally, the IKEA FAMILY Bezahlkarte, a closed looped store card, will be accepted for cash withdrawals at the Ikano Bank ATMs. The ATMs will be Ikano Bank branded and Euronet owned and operated.
"This contract represents a significant strategic step as it marks the expansion and diversification of our business. Until now, Euronet Germany has operated its ATM business based predominantly on the Independent ATM Deployment (IAD) model," stated Alfred Stettberger, Managing Director of Euronet Germany. "This first outsourcing contract for Euronet Germany demonstrates that banks see the advantage of working with a partner who, in addition to delivering classic ATM services, is also able to go a step beyond and provide a rich portfolio of value added offerings - a key differentiator for Euronet," added Mr. Stettberger.
"We chose to work with Euronet due to their extensive ATM operations experience and flexible, state-of-the-art, proprietary technology, which enables our ATMs in IKEA locations to offer a wide range of services," stated Mathias Schmitt, Head of IKEA Business at Ikano Bank GmbH.
Providing outsourcing services in Germany allows banks to leverage the operations and infrastructure costs of off-site ATM deployment. This provides banks an opportunity to reduce their cost structure while delivering broader ATM access and more transaction choice to their customers through Euronet's portfolio of value added services.