ACI's termination will not affect business and customers, says Azim Premji-backed FSS

Azim Premji-backed payment technology player Financial Software and Systems Private Limited (FSS) on Wednesday said that the decision of Florida-based payment systems company ACI Worldwide to terminate its agreement with the company will not have any impact on its operations.

ACI, on November 11 issued a public notice stating that it had terminated its agreement with FSS with effect from November 1, 2016 and Indian banks should refrain from using its FSSNet platform, which offers payment processing services across all delivery channels, including ATMs.

Responding to the notice, Nagaraj Mylandla, Managing Director, FSS said that ACI's decision will not impact company's operations and its customers, largely banks, since all ATMs are managed and monitored by FSS Active Device Manager, which its own software. 

 

FSS is managing around 40,000 ATMs, of the total 2,20,00 ATMs in the country. Today the company managed ATMs are facing the problem of availability of currencies, but not the software or switches, said Mylandla. He noted, today hardly 10% of the ATMs are being refilled again since currency is not available.

The company configured all 40,000 ATMs for Rs 100 notes and 10% of the ATMs are configured for Rs 2000 notes and this task will be completed in a week

"ACI's notice to FSS has no legal basis and is primarily intended to cause confusion in the minds of banks and institutions that avail of the FSSNeT services. This license continues to be active and valid from 2001 which ACI never disputed until recently; having failed to damage FSS business in their earlier attempts," said Mylandla.

He noted, hardly Rs 35-40 crore of the business comes from ACI and this termination will not affect the growth of FSS. The company set a target to close the current fiscal with a turnover of around Rs 1,100 crore as against Rs 810 crore.