LONDON and LEAWOOD, Kansas -- Euronet Worldwide (NASDAQ: EEFT) has contracted to drive merchant-replenished ATMs in Post Office branches throughout the United Kingdom, an extension to Euronet's agreement to operate full-service ATMs in 65 Post Office branches.
Initially, the program will place merchant-replenished ATMs in approximately 130 Post Office branches, with the potential exists for additional future installations.
Merchant-replenished ATMs are filled with cash provided by the operator of the site in which the ATM is located, thereby reducing the cost of operating and maintaining each machine. While popular in the U.S., the concept has yet to be widely adopted elsewhere. However, Euronet currently drives more than 70 merchant-replenished ATMs in the UK.
Peter Davies, ATM client manager, Post Office Ltd., said, "As part of an overall program, this arrangement with Euronet will enable us to provide ATM services across the United Kingdom, including in many small and rural areas, often where there is no traditional access to banking services. We want to provide ATMs in as many of our 18,000 branches as possible."
The Post Office serves over 28 million customers per week. On average, 95 percent of the UK population live within one mile of a branch.
According to Euronet, the contract will rapidly expand its business in the UK. In July 2001 the company gained certification to drive ATMs in the UK from the LINK Interchange Network, the national ATM network. Euronet is the first independent ATM operator and transaction processor to drive ATMs in the UK from a processing center located outside the UK. Its Operations Center is located in Budapest, Hungary.
"Post offices could host one of the largest ATM estates in the UK," said Michael Brown, chairman and chief executive officer of Euronet Worldwide. "This agreement was a substantial accomplishment for our UK staff."
