Lipman, ICC-Cal, Discount Bank set up ATM company

Wednesday 31 December 2003 00:27 CET | News

Lipman, Israel Discount Bank, and credit card company ICC-Cal have signed an agreement to establish a joint company for operating ATMs in Israel.

Up until now, only banks have operated such machines in Israel. The joint companys ATMs will be stationed in various sites where there is a demand for cash and accompanying services, such as retain chain stores, gas stations, universities, hotels, and other public places. The proposed location of the machines is also new for Israel; up until now, these machines have been placed only in bank branches. The cost of withdrawing money from the new machines will be up to NIS 4-5 per transaction, significantly higher than the cost of withdrawals from bank ATMs, for which commissions are not charged, other than NIS 1.14 for a transaction. The banks will also charge a transaction commission with the new machines. 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 Israels 1,300 ATMs was significantly less per capita than in many countries around the world. Lipman will own of the new company, whose name has not yet been determined, and Discount Bank and ICC-Cal 10% 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 the customers making withdrawals from the machines.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce