@Anton, I'm not convinced the Indicash payment switch will be...

@Anton, I'm not convinced the Indicash payment switch will be anywhere near as lucrative as, say, the interchange fee (InterFee) increase.

My reasoning for this view, is that NS has stated that under the FND BLA model (pre-BankIT and TATA acquisitions) a 2 rupee increase to the InterFee, will add approx. $10M to the bottom line. Pre both acquisitions, FND had roughly 8,000 BLA's - so I'm assuming the remainder of the ATM's they managed (i.e. India1's 13K ATM's) the InterFee went to India1.

The payment switch is only a small % of transaction fees, granted a shite load more transactions will occur, but NS hasn't highlighted it as a significant benefit. Add to that, FND had an inhouse payment switch, albeit not as inclusive as the Indicash system, so the benefit will only be the difference in the cost savings between the 2 systems, if that makes sense? In any case, my view is that the benefit and value to the bottom line will only be a small % of the InterFee benefit @ 2 rupee.

Taking that thought a step further, once the TATA WL licence is approved and FND start rolling out the extra 11,500 ATM's we will have available, a 2 rupee increase in the interFee, more than doubles the $10m bottom line benefit NS has previously highlighted. Plus we get the benefit of the 42 products/services that can be sold through our own WL ATM, similar to the CBI BC Max centres.

BUT, and there's always a but - depending on the interFee increase, FND are also up for an additional contingent payment (of $4.5 to $13.6M depending on the increase) for the TATA acq'n, if the interFee lobs within 3 mths of the acq'n date (presuming that's around 15 November 2024 - that would be mid Feb 2025) or FND get BCI approval.

So I'm hoping govt's are similar worldwide and the BCI drag their feet into March on approval or announcing any InterFee increase.