LankaPay celebrates connecting 3000+ ATMs Island wide
LankaPay,Sri Lanka’s National Payment Network that operates the largest common ATM networkrecently celebrated connecting over 3200 ATMs island wide, while routing more than 2.5million domestic interbank ATM transactions a month. Operating under the guidance and approval of the Central Bank of Sri Lanka, LankaPay now connectsalmost 90% of all ATMs in Sri Lanka with the participation of 17 members, namely – People’s Bank, Bank Of Ceylon, HNB, Seylan Bank, NDB Bank, Union Bank, Regional Development Bank, Commercial Bank, Cargills Bank, Habib Bank, Standard Chartered Bank, Sampath Bank, Pan Asia Bank, Nations Trust Bank, DFCC Bank, HDFC and Public Bank.
Launched in 2013, LankaPay Common ATM Switch (CAS) facilitates customers of member banks and financial companies to access their bank accounts from any ATM connected to the LankaPay network at anaffordable fee of Rs. 30/. Prior to the launch of LankaPay CAS, customers used to pay between Rs. 50/- and Rs.200/- per interbank ATM transaction while the issuer bank had to bear Rs. 17.50/- per transaction when the transactions were routed through international payment networks. LankaPay CAS has not only slashed the transaction cost to the banks and customers drastically, but also enabled the country to retain substantial foreign exchange that would have drained out of the country, prior to the launch of this robust domestic ATM switch.
Speaking of the achievement, LankaClear Chairman, Mr. Anil Amarasuriya says “With the Central Bank directive, which mandated all commercial banks to join LankaPay CAS by 31st March 2016, LankaPay common ATM switch has brought top financial institutions onto one platform allowing a sizable proportion of the public to have affordable and secure access to ATMs irrespective of their bank. The system allows a ‘common’ usage of the ATM facilities that are deployed by individual banks by the customers of all banks creating a high level of convenience and cost saving to customers.We also anticipate even greater cost savings to customers by further reduced transaction fees in the future.”
“From the perspective of providing security for the ATM transactions, the common ATM infrastructure makes it possible to establish standardized information security measures. While ensuring all members follow set regulations, it also provides users with the highest level of security possible. Hence, LankaPay has now become the trusted common network for all ATM users. On the other hand, convenience being a key feature, the common ATM switch also brings about the much sought after advantage of economies of scale. A centralized systemtypically allows large transaction volumes to be carried through to provide the benefits of cost efficiencies via economies of scale. Now that most of the banks are onboard, we have seen an increase in the number ofpeople who are starting to use ATMs of other banks. In addition, there are a few progressive banks who have come forward and are offering their customers the service for free or at a lower charge. We anticipate more banks to follow suit, which will help the effective use of resources and greater benefits to the customers” said Mr. Channa de Silva General Manager/CEO of LankaClear.
CAS is the first phase of the Common Card and Payment Switch (CCAPS) of LankaPay trusted national payment network, which will be the backbone infrastructure for all future electronic transactions in the country. The network is enhanced by extensive security and reliability to facilitate seamless connectivity coupled with real-time payments. This implementation is a key national development initiative, which will further enhance the stability of the banking and financial services industry, allowing greater reach, enhanced service offerings and convenience to customers via the common network. In addition to driving affordability and convenience to all customers, it also ensures significant cost benefits to the country in terms of saving foreign exchange by virtue of channeling local inter-bank transactions via LankaPay secure domestic network rather than having to route via international networks.Now with necessary secure and reliable backend infrastructure in place, financial industry is poised to explore a host of new opportunities to create financial inclusivity among rural masses,which is of national importance.
