The Bank of Abyssinia (BoA) signed a contract with S2M - a Moroccan company - to install 200 Point of Sale(PoS) machines and Electronic Fund Transfer (EFT) switch machines on Saturday, December 28, 2013 , in the premises of the Bank's headquarters on Ras Desta Damtew Street , next to the Ethiopian Red Cross Society . S2M, a pioneer of the first credit application in North Africa , was established in 1983. It set foot in Ethiopia in 2012. Among the services it offers are smart card applications, e-commerce solutions and payment system solutions. The PoS is the point at which a customer makes a payment to the merchant in exchange for goods or services. The EFT, on the other hand, is the electronic exchange, which enables the transfer of money from one account to another - either within a single financial institution or across multiple institutions - through computer-based systems. The installation will come after a period of preparation, lasting between 30 and 45 days, according to an agreement signed by Addisu Haba , president of the BoA, and Abdallah Deguig, vice president of S2M. "It will be ready for use after seven months," Abiselom Tefaye, a local partner of S2M, told Fortune. Usually, since getting a switch system is costly, banks partner with each other to use one jointly. The most notable are the United, Awash and Nib banks, which together formed a company called Premiere Switch Solutions (PSS) to provide the service. Through PSS, they purchased a switch system at an estimated cost of 190 million Br from S2M - the same company that is now supplying Abyssinia. The BoA, which has increased its paid-up capital by 20.5pc to 577 million Br, in 2012/13, has, however, decided to take the responsibility on its own. Abay Bank , a new entrant into Ethiopia's burgeoning banking industry, is also operating the PoS independently. "We prefer S2M under three circumstances," Aklilu Wubet , vice president for corporate services at the BoA, said. "They are cost and technically effectiveness, and have flexibility." But Abyssinia has declined to disclose the amount of money it is investing into the PoS system, citing confidentiality agreements. The local Partner of S2M, who attended the signing ceremony, also refused to disclose the cost of the PoS, stating that it is currently bidding to supply other Ethiopian banks and the information may adversely affect its negotiating powers. Eight companies showed interest for the supply of the EFT, while the tender for PoS attracted seven companies. The brand of the PoS, called Ingenico - a French product - won and was selected by competing with the same machine with the brand name verifico. Among the eight were M2M, another Moroccan company, and BPS, which was the previous supplier of Dashen Bank . "We are honoured to have a relationship with S2M," Addisu, the BoA president, said. "We will add more products developed by the Company." When established back in February 1996,Abyssinia had a subscribed capital of 25 million Br and an authorised capital of 50 million Br, with 131 shareholders.Abyssinia's capital adequacy ratio (CAR) of 19.7pc is now more than twice the legal requirement of eight percent.
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