White label ATM is a new term for ATM in India. You will find commonly used terms like ATM or cash dispenser or automatic teller machine also in use, but here, we will discuss the white label ATM.
Before we go deep into the white label ATM, it is essential to know that it is not the same as a bank-owned ATM. You will find many ATMs in India offering similar services, but what makes WLA ATM different?
What is a white label atm?
White label ATM franchise is a technology-based solution that allows users to access multiple bank accounts through a single ATM. It can be used for the financial inclusion of the unbanked population and can also be used in rural areas where traditional banking infrastructure is not readily available. As per RBI guidelines, banks can offer white label ATMs in partnership with non-banking financial companies as long as these are interoperable with other ATMs.
How is a white label ATM Prominent?
The way the payments are made is the main point of difference. When you withdraw money from a regular bank's ATM, you pay a fee to the bank for using their machines. But with these, you will be charged according to your agreement with the company that owns the machine.
The white label ATMs are more flexible and convenient than traditional ones built by banks because these machines can accept payments of various banks. They can also be used for other banking services like transferring and depositing money, making bill payments, etc.
Why is the white label ATM a profitable business model?
This ATM is designed keeping in mind your business needs. It is customized as per your choice and requirements. The machine supports all the top payment modes like online, mobile, and smart cards.
To date, this white label ATM commission has been a great help for several businesses in terms of generating revenue. The business model is highly profitable and reliable and is a great hit in India as people use it to make hassle-free transactions.
White label ATMs in India are deployed by cash logistics service providers that also bear the machine's operating cost. In return, they get a fee from the respective bank or financial institution which deploys the white label ATM.
FAQs about White label ATM
- Which is the first white-label ATM in India?
Tata Communications Payment Solutions Ltd is the first company authorized by the Reserve Bank of India to open a white label ATM in India.
- What is a white label atm?
A white label ATM is also known as a Hosted ATM. They include all new ATMs that can be co-branded with your bank's name and logo on the screen, card acceptance area, and the receipt printer. The machine is linked to your bank's back-office systems via a secure internet connection.
- How is a white label ATM different?
A white label ATM is a self-service machine branded with your company name and operated by a third party, such as a bank or ATM operator. These ATMs are available to the public and allow customers to perform all services associated with traditional ATMs, such as cash withdrawals, check deposits, balance inquiries, and transfers.