AGS Transact Technologies Limited (BSE: 543451 & NSE: AGSTRA), a leading provider of integrated omni-channel payment solutions in India, has announced its latest venture as the manager of Indian Oil Corporation Limited’s (IOCL) ‘XtraPower’ Prepaid Card Platform. This significant partnership is poised to generate an estimated ₹58 crore in revenue over five years for AGS Transact, solidifying its presence in the digital payment and fleet management solutions sector.

IndianOil’s XtraPower program, a flagship fuel and fleet management solution, is currently accepted at over 35,000 IndianOil fuel retail outlets across India. The program processes fuelling transactions worth more than ₹70,000 crore annually, making it a vital component of India’s energy and transportation infrastructure. AGS Transact Technologies will provide a comprehensive end-to-end platform management solution for this program, encompassing application development, IT infrastructure management, and cybersecurity services.

The partnership between AGS Transact and IndianOil represents a landmark collaboration aimed at enhancing fleet management operations through innovative technology. Mr. Ravi B. Goyal, Chairman & Managing Director of AGS Transact Technologies Limited, expressed his enthusiasm for this venture, highlighting the company’s commitment to modernizing India’s mobility ecosystem. He stated, “We are delighted to partner with IndianOil on their flagship ‘XtraPower’ fuel & fleet management program. Our objective is to drive modernization in fleet management through comprehensive and secure prepaid card platform services.”

AGS Transact’s Role in the XtraPower Prepaid Card Platform

Under this agreement, AGS Transact will provide a wide range of services that are essential for the smooth functioning of IndianOil’s XtraPower Prepaid Card Platform. These services include:

i. Application Development and Hosting: AGS Transact will design, develop, and host the necessary applications for the XtraPower Prepaid Card Platform, ensuring seamless user experiences and secure transactions.

ii. IT Infrastructure Management: The company will handle the provisioning of hardware and software for the platform, ensuring its operational efficiency.

iii. Cybersecurity Operations: As part of its services, AGS Transact will set up and manage a Security Operations Center (SOC) and a Security Information and Event Management (SIEM) system, bolstering the platform’s cybersecurity framework and improving threat detection capabilities.

iv. Card Issuance Management: In addition to managing the technical infrastructure, AGS Transact will oversee card issuance for IndianOil’s XtraPower program, providing a seamless experience for both corporate clients and individual users.

This extensive suite of services will play a crucial role in ensuring the platform’s security, efficiency, and scalability, allowing IndianOil to cater to its vast customer base while optimizing its fleet management solutions.

Revenue and Strategic Impact

The ₹58 crore revenue expected from this partnership over five years will contribute to AGS Transact’s financial growth, reinforcing its position as a leading digital payment solutions provider in India. This collaboration also expands AGS Transact’s presence in the fleet management sector, offering innovative, secure, and scalable solutions for some of India’s largest public and private enterprises.

IndianOil, as India’s largest public sector enterprise, plays a significant role in shaping the country’s fuel distribution network. By partnering with AGS Transact, IndianOil aims to improve the efficiency of its fleet management and payment processing systems, reducing operational costs and enhancing customer satisfaction. The success of this partnership will likely pave the way for more such collaborations in the future, boosting India’s digital payment infrastructure.

AGS Transact’s Growing Influence in Digital Payments

With this new contract, AGS Transact Technologies continues to solidify its role as a key player in the Indian digital payments industry. The company’s state-of-the-art transaction switching software processed over 625 million transactions in FY24, underlining its capability to handle large-scale payment systems. In addition to its work with IndianOil, AGS Transact also provides merchant acquiring services, issuance services, and digital payment solutions to various sectors, including banking, corporates, and oil marketing companies (OMCs).

AGS Transact’s continued investment in cybersecurity and digital payment infrastructure enables it to offer robust and scalable solutions to its clients. The company’s focus on innovation, combined with its strong financial performance, positions it well to capitalize on emerging opportunities in the digital economy.

Future Prospects and Industry Leadership

As India’s payment infrastructure continues to evolve, companies like AGS Transact Technologies are playing a vital role in driving the country’s transition towards digital and cashless solutions. With its growing portfolio of services, including the XtraPower Prepaid Card Platform, AGS Transact is well-positioned to lead the digital transformation of India’s payment landscape.

This partnership with IndianOil opens the door to further growth opportunities for AGS Transact, as the demand for secure and efficient payment solutions continues to rise. The company’s strategic focus on innovation, security, and customer-centric solutions will ensure its continued success in the highly competitive digital payments industry.

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