Revenue growth after first month of using MOM ATM a result of cash-out and retailer card-swipe transactions, plus additional foot traffic when compared to the month prior to getting the MOM ATM
“Every time one of our retailers conducts a MoneyOnMobile transaction, our retailer earns a fee and so does MoneyOnMobile. So, we are excited that our MOM ATM product has driven an increase in revenues at the 2,000+ locations where we have installed them. This review demonstrates that our existing agent network of retail stores can increase sales for themselves and for MoneyOnMobile by installing one of these handheld devices. This new service is also increasing the productivity of stores we already have in the network. Showing that we can grow our overall revenue without adding any new stores is an exciting development and part of our overall growth strategy. We now have three ways to grow – increasing the number of stores, increasing the productivity of each location, and increasing the frequency with which consumers use our services,” said Harold Montgomery, Chairman and CEO of MoneyOnMobile, Inc.
MoneyOnMobile launched its wireless ATM product in December 2016 to facilitate cash withdrawals through its pan-India retail network. In a country of more than 1 billion people, where nearly 90% of consumer transactions are conducted in cash.
“We believe that MOM ATMs are filling a huge void, especially for the underbanked, by empowering consumers to move from physical currency to digital and back, both seamlessly and instantly,” commented Ranjeet Oak, Joint Managing Director of MoneyOnMobile.
“India would need to add 2 million additional bank style ATMs in order to have a similar per capita number of them as the United States,” said Will Dawson, COO of MoneyOnMobile. “Our hand-held, low cost, wireless MOM ATMs complete the ‘last-mile’ financial infrastructure for people to access their bank accounts. India went from no phones to mobile phones, from no internet to mobile internet. We are assisting the country in transitioning from physical cash directly to digital mobile payments.”
MoneyOnMobile retailers who have MOM ATMs saw additional foot traffic driven by the service, increasing their processing volumes and transaction counts across all the transaction types they offer, including prepaid mobile top up, bill payment and domestic remittances. Details of the review methodology are noted below.
Review methodology:
1. Retailers included in the MOM ATM review group were limited to those who had performed at least one transaction the month prior to and one month after taking on a MOM ATM in their stores.
2. The control group included all retailers who were not using a MOM ATM in the same month as the review group, and who had performed at least one transaction in the month prior to, and the month after, the review group took on the MOM ATM.
3. Ten months’ worth of data was examined, which created eight unique cohorts of MOM ATM review vs. control groups – December 2016 to July 2017.
4. Data from three core business metrics – number of transactions, processing volume, and revenue – were averaged together across the eight-month review period.
5. The averages of both the MOM ATM review and control group were then compared to produce the 172% revenue growth number. This represented a number over and above the growth seen by the control group.