Transaction Solutions International (ASX:TSN) (TSI) and Novatti Group (ASX:NOV) are planning to jointly develop a range of mobile and online payment services designed specifically for the Indian market.
TSI India's current business model is based on the provision and management of ATMs to major Indian banks and white-label ATM providers.
In November 2016, the Indian Government moved to withdraw all 500 and 1,000 rupee banknotes in an attempt to crack down on corruption and counterfeit currency.
Subsequently, TSI India has been instrumental in recalibrating over 12,000 ATMs for public sector clients in India in the past few months.
Nearly 40% of India’s economy is driven by small and medium enterprises, most of which are largely run on cash transactions and the ban has left many looking for alternative systems.
Novatti has extensive experience in providing financial transaction services in markets such as Malaysia where it offers financial transaction services via a network of over 10,000 agents.
Novatti is expected to provide its innovative mobile and alternative payment technologies, which includes digital wallets, mobile money, electronic bill payments and remittance services.
Any formal binding agreement established will focus on the companies working together to provide Indian consumers with access to an extended range of electronic payment products and services.
TSI’ shares were last trading 11.11% higher intra-day on Friday, at $0.02.