New funding helps Bankomat boost Polish ATM network
The new funding will allow the company, which specializes in ATM services, to expand its network through Poland and the rest of Central Europe, Bankomat said.
Eventually, Bankomat is planning to install 1,000 ATMs in Poland within the next three to five years.
"We'll expand initially to major traffic spots and all the major cities," said Dennis Depenbusch, Bankomat 24 operations director-Poland.
Currently, there are two Bankomat ATMs in Warsaw - at the Marriott Hotel and at Office Depot at the Ikea Commercial Center in Janki. Overall, there are only about 200 ATMs in the country.
"We're looking for plastic to go big in Poland," said Steven Buckley of Poland Partners, which teamed up with London-based venture capital fund Advent International PLC for the Bankomat investment.
At present, Poles rely mostly on cash transactions as checking accounts have never caught on. The advent of ATMs might allow the country to "skip a generation" in banking evolution, said Nicholas Callinan, managing director of Eastern Europe for Advent International.
"Poles may never use checking and go straight to using plastic," he added. "It just seems to us it makes sense that there will be more activity in this in the coming years."
Euronet, based in the Netherlands, is a holding company for the Polish and Hungarian operations of Bankomat 24 and Bank 24 Rt., respectively.
The venture capital funds own 40% of Euronet and are looking at a five-year horizon for network development, said Poland Partners' Buckley.
While Bankomat is only now looking to grow its Polish presence, the company has a strong track record in Hungary, where it has 60 machines. It started there in July 1994 with an equity investment of $4.1 million and equipment financing of $10 million.
The $9 million from the venture capital funds will be used for investment in telecommunications software and hardware for the ATMs, as well as for promotion, marketing and customer service.
Depenbusch said the company will probably only use $6 million of the $9 million, but it will be able to draw on the $3 million if it needs to in the next two to three years.
The investment from the venture capital funds is a down payment for the new Polish network, and the company will eventually borrow $30 million-$40 million for installation. So far, four financial institutions have expressed interest in lending the money to Euronet, said Depenbusch, who declined to name them.
Bankomat 24 ATMs accept only American Express cards now, but in early June the machines will accept VISA cards, Depenbusch said. Wielkopolski Bank Kredytowy SA in Poznan is Euronet's sponsor for the VISA transactions, he said.
The company is also negotiating with less than five Polish banks to provide their customers with ATM services, Depenbusch said. When a bank signs up with Bankomat 24, it allows the company to connect to the bank's authorization center. The bank pays a small transaction fee for use of the machine and, in turn, increases the number of locations servicing its client. The alternative for banks would be to install their own ATM machines.
Eventually, Bankomat is planning to install 1,000 ATMs in Poland within the next three to five years.
"We'll expand initially to major traffic spots and all the major cities," said Dennis Depenbusch, Bankomat 24 operations director-Poland.
Currently, there are two Bankomat ATMs in Warsaw - at the Marriott Hotel and at Office Depot at the Ikea Commercial Center in Janki. Overall, there are only about 200 ATMs in the country.
"We're looking for plastic to go big in Poland," said Steven Buckley of Poland Partners, which teamed up with London-based venture capital fund Advent International PLC for the Bankomat investment.
At present, Poles rely mostly on cash transactions as checking accounts have never caught on. The advent of ATMs might allow the country to "skip a generation" in banking evolution, said Nicholas Callinan, managing director of Eastern Europe for Advent International.
"Poles may never use checking and go straight to using plastic," he added. "It just seems to us it makes sense that there will be more activity in this in the coming years."
Euronet, based in the Netherlands, is a holding company for the Polish and Hungarian operations of Bankomat 24 and Bank 24 Rt., respectively.
The venture capital funds own 40% of Euronet and are looking at a five-year horizon for network development, said Poland Partners' Buckley.
While Bankomat is only now looking to grow its Polish presence, the company has a strong track record in Hungary, where it has 60 machines. It started there in July 1994 with an equity investment of $4.1 million and equipment financing of $10 million.
The $9 million from the venture capital funds will be used for investment in telecommunications software and hardware for the ATMs, as well as for promotion, marketing and customer service.
Depenbusch said the company will probably only use $6 million of the $9 million, but it will be able to draw on the $3 million if it needs to in the next two to three years.
The investment from the venture capital funds is a down payment for the new Polish network, and the company will eventually borrow $30 million-$40 million for installation. So far, four financial institutions have expressed interest in lending the money to Euronet, said Depenbusch, who declined to name them.
Bankomat 24 ATMs accept only American Express cards now, but in early June the machines will accept VISA cards, Depenbusch said. Wielkopolski Bank Kredytowy SA in Poznan is Euronet's sponsor for the VISA transactions, he said.
The company is also negotiating with less than five Polish banks to provide their customers with ATM services, Depenbusch said. When a bank signs up with Bankomat 24, it allows the company to connect to the bank's authorization center. The bank pays a small transaction fee for use of the machine and, in turn, increases the number of locations servicing its client. The alternative for banks would be to install their own ATM machines.
