AGS Transact Technologies Executive Director Vinayak Goyal is focused on establishing a solid footprint for the company in India’s evolving landscape of the Indian fintech industry at the same time learning under the guidance of his father Ravi B. Goyal, Chairman & MD of one of the largest integrated omnichannel payment solutions providers in India. In an interaction with TheNFAPost Editor-in-Chief N V Vijayakumar during his trip to Bengaluru, Vinayak Goyal explains the digital transformation of the company.
How do you view the journey of AGS Transact Technologies so far?
AGS Transact Technologies, which provides digital and cash-based solutions to banks and corporate clients, has come a long way in its journey since its inception in 2002. As on December 31st 2023, AGS Transact Technologies has installed or maintained a network of 78,160 ATMs/CRMs in more than 2,200 Indian cities and towns, thus enhancing the growth and accessibility of banking services nationwide. Over a period of time, from ATM and CRM outsourcing services and cash management, the company has pole-vaulted into digital payment solutions, transaction processing services as well as mobile wallets and prepaid cards.
Indians are approaching any financial transaction with a digital-first approach. How AGS Transact Technologies is looking at the opportunity?
It is a fact that the current generation is very much inclined towards new payment methods, primarily cashless where they have lots of add-on benefits. AGS Transact Technologies is exploring this ever-evolving landscape of payment solutions with a focus on prudent business growth. As part of this long-term journey, we are involving ourselves in use cases within payment space including for mobility, fuel, purchasing experience etc with mobile wallets and open loop cards in association with various banks. Our digital payments brand Ongo offers seamless payments platform with the aim to offer convenience on-the-go. We have deployed over 2,48,000 Ongo PoS terminals across India, of which about 45,500+ Ongo PoS terminals are deployed across leading OMC fuel retail outlets. These terminals empower both consumers and merchants alike to pay via and accept popular modes of payments including UPI-QR.
As the metro is part of urban life, AGS Transact is also exploring opportunities in the mobility space. Can you share the company’s experience so far?
Through our Transit business, we are working with our banking partners to manage end-to-end ticketing solution for leading metro stations in the country namely Kochi Metro and Bangalore metro. We have facilitated the transition from token and paper to QR code-based tickets by offering an integrated structure of collection, compilation, and computing for AFC system. When hon’ble Prime Minister launched the RuPay-backed National Common Mobility Card (NCMC) with a vision of ‘One Nation. One Card’, it gave wings to ease of travelling across the country. The National Common Mobility Card, supported by the RuPay platform facilitates multi-modal transit through offline payment. The card is designed to work in low network areas. Also, this highly secured card can be used in across all NCMC enabled metro stations in the country and can be used for financial transactions across all Rupay acceptance points like shopping, dining, ecommerce and so on. The NCMC is not linked to any bank account but follows all KYC procedures to own it. Following the recent RBI bank circular dated 23rd February 2024, we expect an uptick in the adoption of NCMC cards. In fact, AGS Transact Technologies plans to issue about 25lakh NCMCs over a period of 2years.
Do you find government regulatory stipulations challenging in doing business in Indian fintech space?
AGS Transact Technologies is committed to work within the well-defined regulatory framework of financial and banking space. Across the business verticals – Cash and Digital Payments, Automation solutions, we have complied with all regulations of the Government of India, MHA, and the Reserve Bank of India. India is a huge market with 1.5 billion people and has emerged as the third largest economy in the world. Our focus is on solving customer pain points in their daily financial transaction, be it our B2B customers or B2C customers. Also, here I would like to highlight our efforts to keep customer data very safe. Our payment processing platform is PCI-DSS compliant, and our Payment Applications is validated with PA-DSS.
How do you view the digital payment business evolving around the current Indian system at AGS Transact Technologies?
We started issuing open-loop cards to customers for a seamless customer experience for various use-cases. We have partnered with various banks to issue these reloadable prepaid cards which also safeguards the customer’s financial data. Our NCMC can be used for making various payments including retail, fuel, toll, and parking as well as offline contactless transactions of low value. At AGS Transact, we believe our offerings such as the NCMC will empower citizens make their payments at other mobility services like buses, suburban railways, ferry (boat) services, etc. Additionally, we are pilot-testing contactless open loop fuelling solution on the Ongo app, which empowers the users to preset the fuel amount on Ongo app and pay using the wallet or prepaid card, thus providing seamless fuel payment experience at partner fuel retail outlets. Similarly, we are working on other use cases for prepaid cards which can simplify the payment experience for customers including students.
How do you gauge the company’s performance so far?
During the 3rd quarter of FY2024, the company’s net sales stood at Rs 373.75 crore, down 10.03% from Rs 415.42 crore in December 2022. At the same time, AGS Transact Technologies quarterly net loss touched at Rs. 15.38 crore in December 2023, down 223.66% from Rs 12.44 crore during the same period in the previous quarter. We are performing very well after the Covid-19 pandemic. The company’s 68% revenue still comes from its cash payment division. The company recently won a contract worth Rs 1,100 crores for the supply, installation and management of more than 2,500 ATMs with the State Bank of India (SBI). Backed by clients as Punjab National Bank and Union Bank of India, AGS Transact Technologies manages to bring on board 8,000 ATM/CRMs under their Managed Services fold.
