First Pay: The New Payment Establishment in Tunisia
First Pay, the new payment establishment in Tunisia, owned by Amen Bank, has joined the ranks of existing establishments belonging to banks, such as Wafacash of Attijari Bank and Zitouna Payment of Zitouna Bank.
The services offered by these establishments can be provided by any bank branch. So, what is the strategic utility of such an implantation and strategy? The interest can be summarized in four main points.
1. Reduced Congestion in Bank Branches
Firstly, this allows for reduced congestion in bank branches, which often experience long queues. For services that can be assured elsewhere, creating a payment establishment is ideal, benefiting both bank customers and passersby.
2. Increased Geographic Footprint
Secondly, it indirectly increases the bank's geographic footprint in strategic locations. These establishments can be highly useful in densely populated areas, tourist zones, near polyclinics, universities, student residences, and busy markets, etc.
3. Extended Operating Hours
Thirdly, payment establishments can have longer operating hours than bank branches, particularly during peak summer seasons. This enhances the quality of services offered. If there are strong synergies with the parent bank's services, it can attract new customers.
4. Lower Operating Costs
Lastly, the costs incurred are significantly lower than those of a bank branch. The personnel are not paid under the same conditions as bankers, and the premises are smaller and less expensive. This is a true asset-light model capable of generating significant returns. Even if an establishment does not perform well, closing or relocating it will not be costly.
We can expect to see more payment establishments in the coming years, especially if good results are observed, and other banks will likely follow suit.
