Partnership Between G&D and Wincor for Banknote Recycling
- The two German players, Giesecke & Devrient (G&D) for cards, and Wincor Nixdorf for ATMs create a JV about automated banknote recycling.
- This JV, named CI Tech Components, will develop and sell security processes designed to authenticate and process banknotes. The subsidiary will operate on two premises (Switzerland and Munich) as of March 2011 with 160 employees.
- The two manufacturers intend to increase their joint 10% market share in the growing market of authentication modules and sensors. They deem it to one billion US dollars by 2015, compared to 650 million today (476 million euros).
- The subsidiary will combine G&D software for cash management centre and Wincor software platform for cash collection optimisation, serving both banks and merchants. It will also target self-service systems providers: automatic kiosks for banks, merchants, post offices and train tickets (Cardholder Activated Terminals, CAT).
- Hardware and software components will rely on open standards to help attracting new service providers in this partnership.
- This new partnership partakes to the merger and acquisition trend currently undergone by card industry manufacturers. It started last year with POS terminals manufacturers: VeriFone bought Hypercom last autumn, to be followed by Donoher’s bid on Ingenico and Oberthur hostile bids on DeLaRue.
- To this respect, we should note that DeLaRue published its refusal on January 26, 2011.
- This announcement can be compared to another recent partnership between Wincor Nixdorf and Brink’s to outsource cash management. This partnership targets online management of cash collection from the stores to the banks. It concerns both traditional face-to-face cash collection and self-service. The information is then centralized and control are improved to prevent frauds and payments refusals. It relies on a platform designed to consolidate the availability of cash and equipment. Its intelligent system is further enhanced as the data is analysed to provide information on the required level of cash so that the store can function and in order to organize fund transportation.
See October and December 2010 Watches