Sunday, August 18, 2013

What is white label ATM?

It's an "unbranded" ATM---that is, an ATM which is owned by a non-bank entity.

Traditionally, ATM's have been owned by banks. But an ATM is just a machine with some software running inside it. It's possible for a non-banking business entity to own an ATM and make profit from service provided to customers of various banks.

As I said earlier, a white label ATM is one which is owned by a non-banking entity. It seems that the term is more common in India as compared to other countries. The Reserve Bank of India has recently issued a licence to Tata Communications Payment Solutions (TCPS) to operate such machines.