AGS Transact forays into cashless transactions

 Payment solutions provider AGS Transact Technologies (AGSTTL) plans to focus on cashless transactions, and is also venturing into transit and toll sectors.

In an interaction with DH, AGSTTL chairman and managing director Ravi Goyal said the focus on these sectors will help the company register growth.

“Our subsidiary India Transact Services (ITSL) is building all our non-cash initiatives. We have tied up with KMRL or the Kochi Metro to come up with full payment deployment for the company,” he said.

Goyal said the company will use loop card issued by Axis Bank that can be used with Kochi Metro and other merchants. “This is going to be the first open loop implementation in India. Open loop is a master visa rupee, which is not dedicated entirely to Kochi Metro but can be used for payments to other merchants as well,” said Goyal.

As part of the cashless business, the company developed a wallet — Ongo. “Our wallet is gaining traction. Also, we have come up with prepaid cards, card-less acquiring, mobile point of sale terminals (mPoS) and point-of-sale terminals (PoS), among other systems. These will give seamless transactions for banks and other financial institutions and ecommerce companies,” he said.

Goyal said the company is registering a compound annual growth rate (CAGR) of 28% over the last three years. “The core four verticals that we operate in are banking, retail, petroleum and colour verticals, among others. Out of these, banking is our biggest vertical, garnering 80% of the total revenue,” he said.

As part of transaction business, AGSTTL has installed over 50,000 ATMs till now and expects to clock 10% to 15% growth over the next year. “We have more than 80 banks as clients in the ATM management business and we are working with hundreds of cooperative banks,” said Goyal.

The model in this business is either selling directly to banks or managing those ATMs, looking after its entire life cycle. “Alternatively, AGSTTL has an outsourcing model which is done on a monthly basis or on a transaction basis. In the second instance, assets are owned by AGSTTL and the bank pays on every successful transaction,” he said.