Esprit Financial Group has signed a memorandum of understanding with Hong Kong-based Money Check International, to deploy ATMs in China on a joint venture basis.

Both companies have confirmed that they are currently engaged in detailed negotiations to build a business case and business model to support the deployment of ATMs in the Chinese market.

Esprit CEO Garr Winters said: The market opportunity for ATMs is tremendous. Current estimates place the number of ATMs in China at roughly 10,000. Industry forecasts suggest that this will grow to one million over the next five to seven years.

According to Mr Winters, gross revenue per ATM transaction within China is currently 7.5 times higher than mature markets such as North America. A typical ATM transaction in China generates roughly $3 in revenue against $0.40 in North America in interchange fees alone.