Are ATM Good For Generating Passive Income?

Author Justin Gilmore

Businesses of all sizes should always be looking for new ways to generate extra income. One of the best ways to add a passive source of income to your business is with one or more ATM machines for your customers to use. Here are just a few ways that an ATM can help your business generate a little more income without much effort.

Transaction Fees

One way to make money with an ATM is to charge a small transaction fee every time someone uses it. Obviously, the more use the ATM gets, the more fees you can collect. In the right location, an ATM can get a lot of use and generate a substantial amount of income over time, even if the surcharge is only a dollar or two.

Customers Spend More

Research shows that roughly 25% of the money withdrawn from an ATM is spent at the store where the ATM is located. This is business that you may not get otherwise and another figure that can add up over time and end up padding your bottom line.

Bringing Customers Into Your Business

If you advertise that you have an ATM inside your store, people in need of an ATM will come to your business to use it. Once inside your store, people may feel obliged to buy something or they may see something and make an impulse purchase. Either way, it’s revenue that you wouldn’t have received if not for your ATM. The opposite can also be true. If you don’t have an ATM, customers will have to leave your store in order to find one and they may not come back.

Renting Ad Space

Selling ad space around your ATM is another great way to generate some passive income. Obviously, you need to prove to potential advertisers that your ATM gets a lot of use. However, if your ATM is in a good location, it shouldn’t be that difficult to convince other businesses to pay a small fee for the right to sponsor your machine to help take care of some of the operating costs, helping to boost the money you make off having the machine.

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