The other key points I noted were ......
1.
Extract: The central bank agrees with this reasoning. “The usage of cards has been constrained by lack of accessible acceptance infrastructure, especially in rural areas where the growth in card issuance has been very high in recent times,” said the note.
This is why TSI are so excited re the Mphasis infrastructure and the ability to deal on a pan-India basis.
2.
Extract: According to a JM Financial report, Card penetration in India, number of PoS devices stands at 1.2 million for more than 14 million estimated merchants, which means that over 90% of the outlets are left without a medium to collect payments electronically. It also said that while almost every bank is a card issuer, few are engaged in merchant acquisition and setting up of acceptance infrastructure.
So cash is still King at the moment... and the ATM provides access to that cash - As the article also says "According to the report, India’s average number of card transactions per inhabitant at 6.7 is among the lowest in the world. In Australia it is 249.3, in Canada it is 247.9, in the UK it is 201.7, Brazil 54.8, and it is China 14.4.".
Which to me means lots more growth to come from ATMs and then as the e & m payments come "online" we are there for that too.
As TomDi said, "Of course the downward churn is quite unpleasant but it is heartening to know that we are not dealing with mining tenements or biotech discoveries here. We are invested in a solid recurring business that is supported by an amount of debit cards that is impossible for me to fathom!". So true
MartyW
TSN Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
