Lipi Data Systems, a producer of high speed, heavy duty line printers has forayed in to the self-service market with a range of Automated Teller Machines (ATMs), which provide a host of value-added services. The company has a range of seven different products, of which three have already been introduced. These include the Full Function ATM, Cash Dispenser and the Bi-Directional ATM. While the Cash Dispenser is targeted at the lower segment of the BFSI sector, the Full ATM is a top of the line product that has features such as envelope deposits and the like.

Lipi Data Systems is the first among industry players in India to come up with a Bi-Directional ATM. This ATM dispenses cash from either side of the machine and allows two customers to transact simultaneously. With this, banks need not invest in two ATMs and can make maximum utilisation of available space, especially in cities with expensive real estate, and thus reduce maintenance and operational costs.

D P Nath, business manager (ATM & Automation), Lipi Data Systems said that banks are already feeling the constraint of the number of hits per day, leading to a situation where the ATM cannot accommodate more customer transactions, even if the banks want to . "A typical cash dispenser can serve 400 hits per day while this new Bi-Directional ATM can allow close to 800 hits per day. So a bank does not have to invest in a second ATM," claimed Nath.

However, some other major players in the industry raised concerns over the security of individual transactions, as well as the efficiency of the machines in serving two customers at the same time. Describing the process of cash dispensing Nath said, "The cash dispensing mechanism works for five seconds in a particular transaction. The dispensing capacity of the machine is 10 notes per second, which means a person can get 50 notes in five seconds. Thus the machine is idle for around 35 seconds. If both people using the machine hit the cash dispensing function at the same time, one function will be a fraction of seconds earlier than the other and will dispense cash accordingly."

Lipi is also offering utility bill payments feature through the built-in barcode facility, which is common across the entire range. The company claims that the no other company in India is currently providing this feature in their ATM products. However, a spokesperson from NCR said that the company is technology-ready to offer such features and others depending on an user bank’s requirements.

Explaining the significance of the bill payment feature Nath said, "Today banks are running ATMs not as a revenue model but as a cost model. The barcode system will help banks earn some money through ATMs via bill collections. In our country every bill including credit cards, electricity, and the telephone bill comes with a barcode, but we hardly pay bills through systems that use the barcode, as we don’t have any option."

Lipi claims it has already started receiving a good response from the banking industry and is busy finishing testing and certification requirements. The company wants to start with setting up ATMs at Point of Sale (POS) for big banks and also wants to target small and co-operative banks.

The self service market in India is on the growth trajectory. A report from Banknet India reveals that the number of ATMs installed in the country grew by almost 20 percent in 2007 and have reached close to 25,000 ATMs. The wide acceptance of ATMs by consumers, introduction of biometric ATMs, and various value-added ATM services are driving the next wave of growth in the industry.

However ATM penetration in India is still very low as compared to other developing nations like Brazil. Nath explained that Brazil has 1,35,000 ATMs with a population of 40 million as compared to India, which has only 30,000 ATMs with a population of more than a billion people. "In Brazil, 90 percent of transactions occur through self services like cheques dispensing, bill payment, printing of airline and railway tickets."

Lipi will also soon launch biometric and ticket dispensing ATMs that will print airline and railway tickets.