Tranax recognized for industry growth, leadership

Tranax recognized for industry growth, leadership
Tags: Bank / Credit Union, Distributors / ISO / IAD, Kiosks/Self-Service, Manufacturers, Multifunction ATMs, Other, Retail / Off-Premises, Software, TIO Networks Corp., Tranax Technologies, Inc., Trends / Statistics
June 24, 2006 - Valerie Killifer

In the ATM industry, competition is driven by innovation, customer service and a company's ability to stand out in the crowd.

In 2005, Tranax Technologies Inc. displayed its innovative spirit with the launch of its new Check Cashing Self-Service Terminal, a machine it designed with Texas-based check-processing company Financial Payments LP.

The terminal gives consumers the ability to cash a variety of checks and provides customer support for account enrollment, debit-card issuance and real-time check verification.

Last week, global consultancy Frost & Sullivan recognized Fremont, Calif.-based Tranax for its individualization and leadership in the North American ATM market. On Friday, June 16, Frost & Sullivan presented Tranax president and chief executive Dr. Hansup Kwon with its annual World ATM Markets Growth Strategy and Leadership Award.

Frost & Sullivan research director Rufus Connell said Tranax received the award because of its ability to grow in a saturated market and its continued success in providing high-quality, value-added, low-cost solutions.

"Tranax has become the premier provider of ATMs to the merchant-retail market," Connell said. "Over the past decade the entrepreneurial company has built its significant presence and has grown exceptionally fast."

Frost & Sullivan pitted Tranax against other ATM companies, including Triton Systems, Wincor Nixdorf International, Diebold Inc. and NCR Corp.

All companies were reviewed in four categories: ability to grow in a saturated market; implementation of a unique sales strategy; technological innovation; and strategic partnerships. Frost & Sullivan published an industry report in December 2005 based in part on its analysis of those companies.

Frost & Sullivan's Rufus Connell, left, presented Tranax president and CEO Dr. Hansup Kwon with the 2006 World ATM Markets Growth Strategy and Leadership Award last week in Lake Tahoe, Nev.

"What made Tranax stand out was its ability to make rapid inroads into a saturating market in North America," said Frost & Sullivan analyst V. Aravindh. "Ever since surcharging was introduced in the U.S. in 1996, Tranax has become a key player in the market, especially with respect to merchant-retail ATMs. Its products are reliable, value-priced and tailored to suit the exact needs of its target audience."

Aravindh singled out the company's MBS 5000 series as one way the company has expanded into the financial ATM market. The terminal is marketed to community banks and credit unions that are interested in replacing non-Triple-DES-compliant ATMs with low-cost alternatives.

"This is highly suitable for banks who must upgrade their terminals to comply with MasterCard and Visa deadlines by 2006," Aravindh said. "When compared with legacy vendors, the cost of ownership is much lower and the ATMs deliver good value for their price."

Tranax also has partnered with Tio Networks Corp. (formerly Info Touch Technologies), Livewire International Inc. and Vero Corp. for the development of value-added ATMs and Tranax Self-Service Terminals.

Those relationships have allowed Tranax to offer check-cashing, bill-payment and POS ticketing services at its ATMs and self-service terminals. (Read also, Tranax expands into kiosk business.)

Kwon said Tranax was honored to receive the award.

"The award serves to validate our delivery of high quality, highly reliable products at a lower price and backing them up with an unparalleled level of support," he said.

New territory

Kwon and Aravindh recognize that Tranax has been able to carve a North American niche because the company has historically expanded products rather than geographical locations. But now that Tranax has started to achieve a higher level of visibility within the self-service industry, Kwon said, the company expects to break international ground next year.

"The way we're hitting the market is much more educated and much more experienced," Kwon said.

Tranax's goal in 2006 is to have at least 500 retail self-service-terminal placements.

Kwon said the company would like to have a 20 percent presence in the FI ATM market, a 50 percent presence in the retail-ATM market and a 30 percent presence in the self-service-terminal market.

"However, that 30 percent can grow. If we really hit something, it can be totally blown out of proportion," he said.