Multivendor ATM Software Market: Current Analysis and Forecast (2022-2030)

Multivendor ATM software is a technology that enables banks to centralize their ATM channel management to a single central command center which enhances their customer experience and commission real-time updates. Additionally, this software is capable of working across different ATM hardware and software, enabling companies to procure their ATM hardware and software components separately from different vendors, eliminating their dependence on any one vendor.

Due to the growing banking and financial sector, the multivendor ATM software market is expected to grow at a strong CAGR of around 20% during the forecast period. Furthermore, usage of this software is growing for the unification of the maintenance of different ATMs using multivendor devices network. Additionally, it enables the banks to extend the ATM features such as customers' personal area, payments, advertising management, and other financial services by additionally implementing other functions on the multivendor device network. Owing to reasons like these, the demand for Multivendor ATM Software is increasing at an impressive pace. For instance, in March 2021, CMS Infosystems Ltd announced that it has completed the installation of multi-vendor software on 44,467 ATMs, out of the 1,00,000 ATMs contract they had gotten in 2019 from the State Bank of India (SBI) to implement multivendor software.

Based on component type, the market is bifurcated into software and services. Out of the two, the software segment holds a significant market share. The market is mainly driven by the fact that banks and financial institutions are deriving great value from operating a multivendor ATM software and hardware ecosystem which is benefitting them with cost savings as a single integrated system is easier to maintain and scale than multiple separate applications. Additionally, it streamlines maintenance & updates and provides a consistent user interface with the use of a single software platform. Encouraging banks and financial institutions to adopt this with the rising installation of ATM machines. For instance, on December 2022, according to Statista, there was a net addition of almost 38,000 new ATM machines in two years from 2019-2021, from 2,00,000 ATMs in 2019 to 2,38,000 ATM machines in 2021.

Based on end users, the market is bifurcated into Banking & Financial Institutions and Independent ATM deployers. Among the two, independent ATM deployers (brown-label ATMs and white-label ATMs) are going to grow at a significant CAGR during the forecasted period. The market is mainly driven by the fact that banks are shifting their operations from the capex model to the opex model to run their ATMs, where third parties install and manage ATMs of the bank and are paid for each transaction, releasing the banks from the trouble of going through site selection, buying the ATM machines, and managing them on daily basis which happens in the capex model, increasing their focus on growth and core banking operations. Additionally, under opex model the transaction cost incurred by the banks also decreases by almost 30-50% further increasing the viability of this model.

Based on function, the market is segmented into bill payment, card payment, cash/cheque dispenser, passbook printer, and others. The cash/cheque dispenser holds a significant market share simply because of the fact that the majority of the transactions in the world are still dominated by cash, where cash in circulation has increased all across the globe surpassing pre pandemic limit. The main reason behind this is, cash is a principal and highly acceptable mode of payment and is capable of providing high liquidity. Additionally the rising ATM machines in the rural areas of emerging economies where still the majority of the population lives, have increased cash withdrawals. For instance, on March 2022, as per data released by the Reserve Bank of India (RBI), cash in circulation increased by 9.2% in the Indian economy to hit an all-time high of almost USD 376 billion as compared with USD 342 billion in one year from Mar 2021 to Mar 2022, also cash withdrawals from ATM has risen from USD 36 billion to almost USD 38 billion from Mar 2020 to 2022.

For a better understanding of the market adoption of multivendor ATM software, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The multivendor ATM software market in the Asia Pacific region is going to grow at a significant CAGR during the forecasted period. Owing to the rising per capita GDP of the countries in the Asia Pacific, improving their standard of living and increasing discretionary income of people, driving the overall consumption of the country, increasing banking activity and cash requirements as it is still the most preferred mode of transaction, especially in the rural economy which accounts for the majority of the portion in these regions. Furthermore, the growth of the informal economy such as SMEs and MSMEs is significantly elevating cash usage. Additionally, drifting to Multi-vendor ATM software (MVS) from traditional OEM software allows smooth remote security updates by banks through the cloud. MVS enables banks to market personalized as well as new products to customers across its ATM network in a flexible and fast manner thereby making ATMs a critical component of a bank's digital strategy and can also be seen by the innovations that is happening in this area. For instance, on August 2021, RBP (Rural Banking Programme) Finivis Pvt. Ltd, launched a self-service Mego ATM which is equipped with a micro ATM device which enables cash withdrawals and deposits. The Mego ATM is also installed with AEPS bio metric where one can check their balance and transfer money directly from one source to another. This is an innovation under the PMJD Yojna and Atma Nirbhar Bharat Yojna, an initiative by the RBI which has allowed white-label ATMs to Fintechs.

Some of the major players operating in the market include: CMS; KAL ATM Software GmbH; Auriga Spa; Hyosung Global; NCR Corporation; Hexaon Business Mitrasindo; Diebold Nixdorf; ZOOM CyberSense; Clydestone Group; and Printec Group