Awash Picks ATM, PoS Suppliers

The bank will invest nearly 100 million Br to procure the terminals

Awash Bank, the most capitalised and profitable private bank, is going to invest close to 100 million Br to procure 200 automated teller machine (ATM) and 1,000 point-of-sale (PoS) terminals.

CBM Lebanon, in partnership with Computer Business Machines (CBM) System Integrator, made the lowest offer of 71.6 million Br to supply the 200 ATMs. Société Maghrébine de Monétique (S2M) and International Transaction Payment Solutions Ltd.(TPS) made the lowest offers of 17.9 million Br and 263,150 Br, respectively, to supply the PoS terminals.

Awash, which netted a one billion Birr profit last year, announced the bid to procure the ATM terminals six months ago. The tender had initially drawn the attention of seven companies. But only four of them submitted their proposals including Computer Business Machines (CBM) System Integrator, Moti Engineering, the Chinese company Cashway Technology and another local company, Minaye Plc.

Cashway Technology could not pass the technical qualification while the other three reached the financial stage. At bid opening, CBM’s offer came at the lowest price of 59 million Br for the 200 terminals, excluding the deployment and technical services, while Moti came as the second lowest bidder with 65 million Br.

To supply PoS terminals S2M, a company established three decades ago with a presence in 35 countries across Africa, Asia, Europe and Oceania offered a total of 640,000 dollars while the Dublin based TPS, a subsidiary of Myriad Payments Ltd, offered 263,150 dollars.

“We will finalise the negotiations with these potential winning companies and sign agreements soon,” Tsehay Shiferaw, president of Awash told Fortune.

The machines will be in addition to the existing 213 terminals Awash operates including 106 ATMs in Addis Abeba, 72 in regional states and the remaining 35 located in lobbies at prime locations throughout the city.

The new machines will also be an addition to the existing operational 2,673 ATMs and 8,760 Point of Sales (PoS) owned by the state and private banks in the country, of which the Commercial Bank of Ethiopia (CBE) operates more than half. The two competitors, Moti and CBM supplied the majority of these terminals. Established in 2006, with a registered capital of 100,000 Br, Moti has sold 4,000 NRC brand ATMs while CBM, which has three offices in the country, installed over 700 Debold brand ATMs.

In addition to Awash Card, the new 200 ATMs can accept international cards including Visa, MasterCard and China Union Pay. The terminals can also be accessed by the 3.6 million cardholders, 20pc of all bank customers throughout an industry-wide system, Et-Switch.

Et-Switch was established as a consortium in 2011 by all commercial banks and the central bank with 80.5 million Br paid-up capital to integrate the operations of all ATMs and PoS run by the banking industry. This system enables all cardholders to use any ATM, irrespective of the bank, for a five Birr service fee per 1,000 Br withdrawals. this year Et-Switch transacted six billion Br.

The number of cardholders in Ethiopia stands far lower than neighbouring Kenya that has 15.4 million cardholders that use its 35,500 PoS and 2,900 ATMs.

Digitalising the payment system is one of the areas Ethiopian banks need to work on, according to Ibrahim Dawud, a certified card banker with two decades of experience in the banking industry.

“Considering the introduction of card banking in the country 12 years ago, I can say that the growth is fairly good,” he said, “but the banks have to go one step beyond in creating a cashless society.”

Along with card banking, all banks in the country has to advance on mobile and Internet banking, according to Ibrahim.

The new terminals will be deployed across the country where Awash Bank has branches, according to Tsehay.


Published on Jun 30,2018 [ Vol 19 ,No 948]



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