News

New company to deploy Israel's 1st non-bank ATMs

December 22, 2003

ISRAEL - Lipman Electronics Engineering (TASE:LPMA), Israel Discount Bank (TASE:DSCT), and credit card company ICC-Cal signed an agreement to establish a joint company for operating ATMs in Israel.

Until now, only banks have operated ATMs in Israel, according to a Globes report.

The joint company's ATMs will be stationed in sites where there is a demand for cash and accompanying services, such as retain chain stores, gas stations, universities, hotels and other public places. Until now, ATMs have been placed only in bank branches.

The cost of withdrawing money from the new machines will be up to NIS 4-5 (U.S. 91 cents-$1.14) per transaction, higher than the cost of withdrawals from bank ATMs, for which customers pay NIS 1.14 (U.S. 26 cents) per transaction. The banks will also charge a transaction commission with the new ATMs, according to the Globes.

The new machines will initially handle cash withdrawals; additional services will be provided later. The service will begin operating in April 2004, and thousands of machines will gradually be placed around Israel.

Lipman, Discount Bank, and ICC-Cal said that Israel's 1,300 ATMs was significantly less per capita than in many countries around the world.

Lipman will own the new company, whose name has not yet been determined; Discount Bank and ICC-Cal will have a 10 percent stake each.

The company will derive its revenue from fixed monthly payments by the businesses in which the machines are stationed. The businesses will receive commissions from cash withdrawals.