written by | May 25, 2022

Hitachi ATM Franchise – Requirements, Cost and Applying Process

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Table of Content


The Reserve Bank of India has allowed non-banking entities to set up ATM facilities. As these entities are not a part of the banking system, the ATMs do not carry the logo of any bank. Rather, they have the service providers logo on them. Several non-banking entities provide ATM facilities across India. One of them is Hitachi Payment Services Private Limited. Hitachi ATM franchise is a profitable business opportunity for those who wish to have an additional source of income. The services are provided under the brand name Hitachi Money Spot ATM.

Did you know?

Hitachi Payment Services Private Limited is a fully owned subsidiary of Hitachi Limited. It is one of the leading providers of ATM services and has more than 64,000 ATMs. The company also has 6000 white label ATMs and manages around 1.45 million POS devices.

The Hitachi Payment Services ATM Company Overview

The white label ATM services provider Hitachi Payment Services Private Limited was founded in 2005. The parent organisation of this subsidiary is Hitachi Limited. The company has its headquarters in Mumbai, India. With over 6000 white label ATMs spread across the country, the company is one of the country's best cash and digital payments providers. Hitachi Payment Services primarily focus on small cities and towns, which fall under tier 3 - tier 6 categories. The company aims to provide well-established monetary facilities in small towns and rural areas of the country. The company offers its service to its customers with secure ATM facilities located in the most convenient places.

What is a Hitachi ATM Franchise Business?

An ATM franchise is a business model through which entrepreneurs can make money by managing a white label ATM. Non-banking institutions establish these franchises, and one example of this business model is the Hitachi ATM franchise.

The ATM franchise business can bring in a regular source of income if managed properly. Customers using the ATM usually pay a service fee that goes directly to the franchise owner. This money is generally used for maintaining a steady balance of cash in the ATM, while the rest can be counted as a profit. If managed properly, it can be a profitable business opportunity.

Also Read: Complete Guide to starting a Bank ATM franchise

The Benefits of Hitachi ATM Franchise

The Hitachi ATM franchise investment returns are good enough for anyone thinking of getting a Hitachi ATM franchise. There are a few ways people who own shops can set up ATMs. The ATM can either be a standalone system, shop in shop or a full shop set up. By having an ATM within or beside a shop, one can get the following benefits:

  • The ATM will act as an additional source of income for the franchise owner.
  • The store or shop will gain visibility and build a reputation among customers.
  • Having an ATM within the store will attract more customers and increase sales and ATM withdrawals.
  • Having a white label ATM within or close by the store will ensure the safety of cash in the ATM.

Why Partner With Hitachi ATM Franchise Payment Services?

  • Hitachi is a well-known brand, and partnering with it can be a profitable opportunity for a franchisee. 
  • The franchisee does not require a lot of investment to start the business. With little investment, one can generate regular income through this business model.
  • The company offers full support and trains new franchisees to run their business successfully.
  • With most bank cards accepted at Hitachi's white label ATM, customers can make easy withdrawals. Add-on services like mobile recharge and utility bill payments can attract more customers to access the ATM.

Why Should You become a Hitachi ATM Franchisee? 

Here are some of the reasons you should become a Hitachi ATM franchisee.

  • Hitachi is an authorised franchise provider. It has a licence issued by the Reserve Bank of India to set up white label ATMs across the country.
  • It is a great business for those who want to generate income without putting in a lot of effort.
  • This franchise opportunity can be a nice addition to their already running business for people with already existing commercial spaces.
  • One can derive their Hitachi ATM franchise investment quickly as the return on investment is expected at 33% in one year and can rise to 53% in 5 years.
  • The franchisee has full ownership to run the ATM, and activities like maintenance and cash loading are entirely upon the franchise owner.
  • And finally, the franchisee gets strong backup support from the company in case of any issues related to the ATM.

How Does the Hitachi ATM Franchise Work?

Let us see it through a step-by-step approach for those wondering how the Hitachi ATM franchise plan works.

1. Site Identification

Identify the site or the commercial space where the ATM would be set up for customers to use the service.

2. Signing the Franchise Contract

After all the documentation and account opening, an agreement is signed between the franchiser and franchisee, and the franchisee must pay a refundable security deposit.

3. Preparing the ATM Site

The ATM site is prepared by getting all the civil and carpentry work done, which is the franchisee's responsibility.

4. Get the Go-Live Support for ATM

Things like batteries, VSAT, branding and mandatory RBI marketing collateral are taken care of. Initial training by TCRSL is also provided.

5. Inaugurate the ATM

An inaugural ceremony for the ATM site can be done to gain customer attention.

6. Manage ATM Activities

Activities like regularly loading cash into the machine, maintenance and other promotional activities must be carried out by the franchisee.

7. Earn Margins with Every Transaction

Every cash or a non-cash transaction earns a small fee which is counted as a profit to the franchise owner.

The Documents Required to be a Hitachi Payment Services ATM Franchisee

  • Identity proof like Aadhaar Card and PAN card.
  • Address proof like electricity bills for self-owned stores and landlord agreement for rental or leased commercial space.
  • Documents related to proprietorship, partnership or LLP like trade name and GST no.
  • New bank account details are tagged for a waiver according to 194N.
  • Two sets of agreements are prepared on a stamp paper of ₹100
  • When signing the contract, a demand draft of ₹5 lakhs is to be submitted as a refundable deposit. 

The Hitachi ATM Franchise Models

There are three types of franchise models one can opt for. Requirements for every model are different. So let's have a look at the other Hitachi ATM franchise plans.

The Basic Model

Years of agreement

9 Years

Security deposit

₹50,000

Refundable amount

₹26,400

Fixed fee per month

₹12,500

Earnings - For the first 1080 transactions

₹14 (Cash transactions) and ₹4 (Non-cash Transactions)

From 1081 transactions

₹11 (Cash transactions) and ₹2 (Non-cash Transactions)

The Emerald Model

Years of agreement

9 Years

Security deposit

₹2.6 lakhs GST

Refundable amount

₹1 lakh

Fixed fee per month

Lifetime zero fixed fee

Earnings – On Withdrawals

₹8.50 (Cash transactions) and ₹2 (Non-cash Transactions)

On Deposits

₹8 (cash deposit)

The Topaz Model

Years of agreement

9 Years

Security deposit

₹2.1 lakhs GST

Refundable amount

₹1 lakh

Fixed fee per month

Lifetime zero fixed fee

Earnings

₹8.50 (Cash Transactions) and ₹2 (Non-cash Transactions)

How to Apply for the Hitachi ATM Franchise?

To get a Hitachi ATM franchise, apply to the company by sending them an email at the following address -

 wla-franchisee@hitachi-payments.com

The company representatives then contact you to discuss things further. If everything falls in place and the franchisee agrees to sign a contract with the company, the next steps in the application procedure are followed.

The Hitachi ATM Franchise Contact Details

  • Corporate Office

Contact: Vishal Yeragi

Phone: 91 22 3954 1800

Email: info@hitachi-payments.com

Address: # 401, 4th Floor, Silver Metropolis, Jai Coach Compound, off Western Express Highway, Goregaon (E), Mumbai – 400 063

Also Read: Complete Guide to starting an SBI ATM Franchise

  • Registered Office

Contact: Ravi Venkat

Phone: 91 44 6156 7600

Email: info@hitachi-payments.com

Address: Level - 2, Silicon Towers, 23/1-B, Velachery Tambaram Main Road, Pallikaranai, Chennai - 600 100.

The Procedure to Setup a Hitachi ATM Franchise

Setting up the Hitachi ATM franchise can be divided into a few steps. The role of the franchisee and franchiser is equally important in setting up the ATM space. Here are the steps involved in setting up the ATM - 

  1. The first step involves signing the contract, paying the security deposit and providing the commercial space for setting up the ATM.
  2. After the room is set up and ready with all the civil and carpentry work done, Hitachi instals the ATM and takes care of all the settings required to make the machine ready for service.
  3. Once the franchisee loads the ATM with a cash amount of ₹1 lakh, the ATM is operational and ready for use.

Conclusion

The Hitachi ATM franchise can be a good option for an additional source of income in towns and rural areas. As there are fewer ATM facilities in these areas, any provider that can help customers by providing convenient money withdrawal facilities will earn good profits. Prior experience handling ATM services is not required for applying for an ATM franchise, and any person who has the initial investment can apply for the franchise. Proper training and support are all included in the onboarding process, where the basic information and training are provided to the franchisee for the smooth running of ATM services.
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FAQs

Q: Is there any lock-in period when applying for the Hitachi ATM franchise?

Ans:

Yes, a lock-in period of one year is applicable. If a franchisee wants to exit before the locking period ends, the franchisee is liable to pay ₹1 lakh.

Q: How much can one earn by being a Hitachi ATM franchise owner?

Ans:

By becoming a Hitachi ATM franchisee, income can be substantial as the estimated return on investment is 33 %- 53% over five years.

Q: How are the Hitachi ATM franchise reviews?

Ans:

The business review is good as Hitachi is a trustworthy company and provides good returns to the franchisees. One can also check out reviews on the internet to get a better idea about the business.

Q: Is the Hitachi ATM franchise a profitable business opportunity?

Ans:

The Hitachi ATM franchise is a profitable business if you have the initial investment amount. Once set up, the ATM generates regular profits depending on customer usage.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.