Author: Justin Gilmore

Automatic Teller Machines (ATMs) are a primary customer touchpoint. People still need cash, and for many business owners, the ATM remains a vital resource for increasing foot traffic and overall customer spending. As kiosks evolve with digital advancements, the standard ATM has become a personalized service opportunity.

But digital function and improved design also introduce complexity. New problems such as network communication errors or bad card readers can lead to service disruptions, customer dissatisfaction, and profit loss. In addition, ATM owners must monitor their routes to prevent kiosk issues and unavoidable downtimes.

Let’s examine all there is to know about real-time ATM monitoring to help you decide if your ATM business can benefit from the service.

Online Real-Time ATM Monitoring –What It Is and Why It’s Needed

Online real-time ATM monitoring helps ATM owners collect health, cash, and consumable status message updates from all their ATMs. The digital service uses ATM management information system (MIS) software to capture data according to your set preferences and provides real-time updates on all your network-connected ATMs.

For example, if an error event (such as time-outs, faulty dispensers, receipt malfunctions, signal connection downtimes, etc.) occurs within your ATM, you receive an instant alert message. You can trigger notifications for any unexpected ATM problem and have them sent directly to your email or phone. As a result, you can take immediate action, helping improve your problem resolution times. Instant high-level tracking is a helpful tool for limiting service disruptions.

Real-time monitoring also provides updates related to cash supply status warnings, routing the alert to the responsible support personnel for preventative action. If you need more cash, the service will send a request to your cash management service provider to refill your vault cash long before you run out. In addition to error tracking, monitoring systems help automate kiosk services.

Lastly, real-time monitoring provides optimization possibilities. Collected data is cleaned and combined into actionable insights that can help you streamline the performance of your ATM fleet. Machine learning inputs predictive information into easy-to-read dashboards, letting you be proactive towards possible machine upgrades. Get a detailed look at your kiosk performance and discover new ways to improve the customer experience.

What Is an ATM Management Information System?

An ATM management information system is the software that facilitates a customer bank transaction. Anyone who inserts a bank-supplied card into an ATM to deposit or withdraw cash communicates with the ATM management information system. It is how digital transfers between financial institutions and your ATM occur.

Real-time monitoring solutions integrate with ATM management information systems to collect data. You hold a wealth of consumer behavior inputs within your system, especially if you have a fleet of kiosks. Millions of customer transactions contain information that can help you improve ATM performance. Ideally, you can use those insights to offer better services and increase revenues.

The issues with ATM management information systems also compound as you scale. For business owners with multiple ATMs, keeping track of the numerous transactions routed through the information system is time-consuming. Complexity once again makes control difficult. With the support of a real-time monitoring solution, your range of vision increases according to business expansion.

What Are the Top Benefits of ATM Monitoring Software?

Since ATM Monitoring software gives you end-to-end visibility of your entire ATM fleet and any connected systems, you can achieve several key benefits.

Fraud prevention

Of great importance, a monitoring solution can help flag and detect possible instances of fraud. It is a layer of protection against possible threats, operating 24/7. The system will alert you of potential financial crimes such as cash-outs, malware infections, and transaction reversals. Take immediate action to block suspicious activity, helping protect your asset and maintain a sterling reputation of safety.

Global monitoring

Control your ATM systems from anywhere in the world. View daily, monthly, and yearly reports for transactions and service benchmarks for any of your kiosks. All incident reports and collected data are easy to view through a simple online platform. Such transaction intelligence allows you to understand where and how consumers interact to ensure complete physical and digital security of all kiosks. Plus, management security solutions can track failed or unsecured transactions and report on how the disruption impacted customer retention metrics or brand reputation.

Service performance improvements

Use data to improve the efficiency of your entire ATM network. For example, terminal status updates can give you an overview of your kiosk networks, allowing you to locate areas that could benefit from change management.

Proper vault cash management is key to the success of your ATM business; use cash forecasting to help streamline cash vault supply with timed refill services and armored truck dispatches. With the right information, you can make improvements that boost the performance of your kiosk. Service upgrades create a positive consumer experience that will drive revenue increases.

Merchant side support

Real-time monitoring also offers several back-end support. Take advantage of accounting tools and merchant payout modules that showcase earned revenues and service fees from customer transactions. All reporting can customize according to your merchant needs, and even automated adjustments can be set up between bank accounts according to your business requirements.

ATM Processing and Online Real-Time Monitoring With AtmMachines.com

To help you leverage the benefits of online real-time ATM monitoring, partner with AtmMachines.com, LLC. In addition to our processing services, you gain access to online real-time ATM monitoring through Columbus Data Services (CDS).

CDS is a webtools product with a robust web-based ATM management information system. The application provides ATM monitoring from anywhere in the world, all at no additional cost. Log in from any internet-enabled device (or the mobile app) to view real-time status updates for greater visibility and peace of mind.

Plus, you will find daily, monthly and yearly reports compiled from collected data on ATM transactions. Sift through actionable insights to spot trends, or use supply information to control cash vault schedules. It is a service that reduces your risk while automating most performance management aspects related to your kiosks.

Enjoy Peace of Mind with AtmMachines.com

The profits of your ATM are directly related to its availability. The percentage of time your ATM can dispense cash is crucial to maintaining high usage — and by extension, earning higher profits. With the renewed emphasis placed on consumer experience, an ATM must offer reliable service.

To mitigate service disruptions, use real-time monitoring with AtmMachines.com, LLC to track and manage your ATM fleet. Earn high availability, better security, global tracking, and performance improvements with our monitoring solutions. If you want to simplify your ATM business or need support with scaling your fleet, AtmMachines would be happy to partner with you.

Contact us today to request a consultation to find out how we can simplify your ATM vault cash management and machine processing while offering 24/7 real-time ATM monitoring.

An ATM is a profitable business venture. With earnings that average $3.08 per transaction, you can break even and gain a complete return on investment within 12-18 months. A well-placed ATM kiosk represents a viable passive income source for investors, store owners, and entrepreneurs.

But ATM ownership also involves some upfront work. From achieving compliance to setting up payment processing and maintenance schedules, there are existing overhead costs and preparation tasks you must tackle before you can generate revenue.

In an earlier blog, we outlined a few necessary steps regarding deal structures, paperwork, and setting a fee split with any business partners. This blog will focus on another crucial aspect of owning an ATM: cash vault management.

Read on to learn more about cash vault services, why you need to plan out your cash schedules, and the easiest ways to optimize your ATM cash processing operations.

What Is Vault Cash?

Vault cash is stored money used as a safety reserve for business operations. Since every ATM accepts and transfers large quantities of money, owners need to keep liquid reserves on-premise to handle the kiosks’ day-to-day supply.

Customers engage in many cash-based services through your ATM (withdrawals, money transfers, and bill payments) – without enough cash on hand, you might not be able to fulfill a customer request.

While partial ATMs do exist, most machines have attached vaults where you can store your cash float. In technical terms, “cash loading” refers to the act of filling your ATM Vault, while the money stored in the vault for safekeeping is considered “vault cash.”

Proper vault cash management is key to the success of your ATM. Numerous customer transactions deplete your supply, and without a safe and efficient way to source, deliver, and refill your vault, you could run into service disruptions or take on undue security risk, both of which hurt your profits.

Vault Cash Management and Customer Transactions

Let’s walk through typical customer transactions so you can better understand the necessity of vault cash.

1. A customer will verify their details and use your ATM to withdraw cash. The machine then completes the request through a processor, a central ATM host that communicates with the customer’s bank and starts the electronic fund transfer (EFT). Once the host receives the money from the client’s bank, it approves the cash request at the kiosk, and the customer walks away with cash in hand.
2. As the ATM owner, your vault cash supply decreased, so you will receive from the ATM host the electronic transfer amount taken from the customer. The funds will be transferred via ACH to your chequing account (plus any convenience fees) with a next-day turnaround. From there, it is your responsibility to refill the cash vault from your bank account and “settle” the transaction.

An ideal setup would involve two checking accounts: one for operating capital and vault cash and one for your surcharge fees. Surcharge fees are direct earnings, so it is best not to mix profits with your cash float. Plus, you might need to split fees between business partners or other accounts – it is best not to confuse withdrawals from your cash vault account with surcharge profits and business expenses.

How Much Vault Cash Does an ATM Need?

You need enough vault cash to manage the average demand of your ATM. Without enough supply, you can hurt your revenues and increase expenses.

For example, a reputation of extended service outages will deter customers and potentially lose their lifetime sales value. Multiple small trips to replenish the vault add to operational expenses that can hurt your return on investment and break-even timeline. They also extend your security risk, especially if you don’t have protected cash transfers.

Maintaining a proper cash vault balance is known as cash replenishment planning, and you need to set a schedule if you hope to scale your ATM route. Different ATMs require cash loads on different timetables dependent on transaction volume, average consumer withdrawal amounts, and machine access (i.e., store hours). Without proper planning, your efficiency could decrease as complexity grows.

To find the ideal cash load for a particular ATM and its planned delivery schedule, track about three to six months of customer transactions. Humans are creatures of habit, and you can use that data to understand the average amount of transactions and the average cash value that flows through your ATM.

Once you have an average daily withdrawal amount, times that number by nine, giving you a sum for nine days worth of cash. A nine days surplus is an ideal fit for a weekly refill schedule. There is enough money to handle possible withdrawal spikes without creating additional undue or unnecessary expenses.

Can You Outsource Your Cash Management?

Due to the setup time, liquidity requirements, and costs for delivery, many ATM business owners opt to use a vault cash management service. A third-party service offers you several advantages:

• Frees up your finances: Many cash services will use their own money to maintain the cash vault. That means you no longer worry about settling your vault or chequing account, and it also frees up a significant sum of money that you could divert to business growth.
• Seamless service: A vault cash service will maintain the ideal replenishment schedule, ensuring that you always have cash on hand and can fulfill every customer request at your ATM.
• Lowers operation costs: Save on bank fees, delivery fees, and other expenses by outsourcing your cash management. Any costs incurred become your service partner’s responsibility, making your ATM an efficient, hands-off venture.
• Increased security: With a service, you no longer risk your own money and limit any potential losses associated with security issues. You don’t have to pick up large sums of money and can avoid employee training by hiring a cash vault service.

For many ATM owners, outsourcing is a preferred method for managing their vault cash.

Partner With Us

At AtmMachines.com, LLC, we offer various service partnerships — including cash vault management. As your outsourced cash vaulter, we handle all responsibilities related to cash loading. We do the heavy lifting! Take advantage of our dependable supply of liquid cash, ensuring same-day withdrawals for deposited vault cash, optimized load amounts and schedules, and coordinated armored couriers with reputable transport services.

With us as your partner, you can take advantage of our industry relationships and business services. For example, If your ATM does not produce enough transactions to justify an armored vehicle, or if your ATM is in remote locations, we work with local, reputable ATM services to facilitate your needs.

A dependable vault cash supply is the linchpin of any thriving ATM program. That is why we offer you comprehensive and hassle-free solutions for cash access, vault supply, and armored carrier management.

Click here to learn more about our Vault Cash Program.

Alternatively, contact us today to request a consultation.

There is plenty to consider when creating a profitable ATM business. From payment processing to organizing cash liquidity, ATM ownership does include some preparation before providing stable and consistent returns. There are many elements to consider when learning how to get in the ATM business, but in the end, you can certainly see a return on investment.

In particular, the relationship with your ATM clients has a significant impact on your kiosk’s earnings. Location is everything, so the business deals you make with the retailers and business owners for high foot-traffic real estate is crucial to the success of your ATM route.

If you have found the ideal location for placing a machine, read on to learn how you can create a high-quality ATM proposal. One well-devised sales pitch can entice physical store owners into a profitable business relationship. If you own real estate, use the following steps as vetting criteria for good ATM owners.

A Million Ways to Make a Deal Starts with Prep Work

The most efficient way to structure a win-win deal for you and your business clients starts with prep work. Due diligence not only shows the reliability of your proposed income source but also keeps all financial affairs in order. In a business with intensive compliance requirements and a need for good security, an in-depth proposition makes all the difference.

Use the following steps to best outline the terms of your ATM deal clearly and concisely:

Step 1. Set your flat-rate fee and fee split

As an ATM owner, you make money from surcharge fees applied to customers. For each transaction, you take either a flat rate, a percentage fee, a combination of both.

Surcharge fees vary based on several factors, such as geography, foot traffic volume, consumer clientele, business type, etc. And while some ATMs can command a higher surcharge fee, it is best to select a price point that matches market rates.

For example, Citizens Trust Bank in Georgia charges $2 per transaction, First Republic Bank in California is free for regional users, while Bank of America charges $2.50. Meanwhile, the average ATM surcharge for operators currently rests at $3.08. Selecting fees way higher than average will result in less customer usage which will hurt revenues.

Once you set a satisfactory surcharge fee rate, present a cut of that fee to the business owner in your proposal. The split fee is the “value add,” or the possibility of passive income that might interest someone in your ATM opportunity.

Attempt to create a fee structure that is lucrative for both parties. Whether that includes negotiations on total fees or a mixture of both transaction percentages and set customer charges, a good middle ground can leave you both happy. To most store owners, such a deal is quite attractive, as the ATM itself brings in more customers who spend more in addition to passive income.

Step 2:  Get your paperwork in order

Organize all supporting paperwork within your proposal. You need several different document types as an ATM owner, and having that paperwork on hand while making a pitch makes it far easier to entice new business clients.

For example, both you and your potential business partner will need to fill out Automated Clearing House (ACH) service agreements. For security reasons, all businesses must obtain authorization to exchange cash deposits and surcharge fees. Having detailed explanations about who is responsible for the cash float liquidity or how each party receives their share of funds also makes for a better partnership.

Another critical document to prepare for is an ATM Location Agreement (check out our AtmMachines.com Location Agreement template for an example). It is a simple way to lay out all the nuances associated with the proposed ATM placement deal, including maintenance schedules, how to proceed with repairs, insurance requirements, security, installation information, and any other potential legal definitions.

The more paperwork you provide, the more confident your business partner will be in your ATM opportunity. Be sure to collect and present Source of Funds documents, copies of personal identification, compliance forms, and processing agreements within your pitch.

Step 3: Pitching to a client

With the details in order, the next step is proposal delivery.

Your potential clients might not know how to get in the ATM business so make sure they understand the following benefits that an ATM placement can provide:

• Free ATM kiosk usage
• Minimal setup hassle
• Minor maintenance fees (open for negotiation)
• Easy security setup
• Passive income from surcharge fees
• Increased foot traffic (consumers visit an ATM 4.4 times a month on average)
• Increased consumer spend with the cash extracted from an ATM (user shopping carts increase 20-25% in convenience stores with an ATM)
• A decrease in customer churn
• A reduction in other payment methods requests due to the availability of cash
• Minimized risk with you as their partner.

At first glance, a store owner might not know or understand just how profitable an ATM partnership is. Most businesses rely on customer engagement. An ATM increases total traffic, total cash spent, and total sales conversions, all with a reduction in customer exits (a customer who leaves a store to draw cash is less likely to return and make a purchase). Your pitch must outline how a partnership with you is a lucrative opportunity.

Lastly, don’t forget the importance of branding. A logo, a professional email, and a website are must-haves. Not only does good branding provide identity authenticity, but good marketing material can help drive more potential clients to your business. Demonstrate your authority and credibility to teach potential customers how to get in the ATM business and succeed.

Step 4: Structuring your deal

Even if conditions are perfect, a deal takes time to negotiate. For example, both you and your potential business client need to discuss how the fees split, create projections of revenue numbers, and prepare for overhead costs.

While negotiating, be sure to run the numbers yourself to ensure that your ATM placement will earn you stable returns. Request to view any merchant’s total foot traffic and expected transaction volume to help determine profits with the following formula:

• [Surcharge fee] x [potential monthly transactions] – [fee split] x 12 months = Potential annual return

Once you can add up the annual rate of return, don’t forget to account for any additional expenses that could lower your earnings, such as kiosk purchases, payment processing fees, and installation costs. In general, a sound ATM investment would result in a 100% return on investment within a year or less.

Often, a good business deal requires a series of adjustments before it becomes mutually beneficial. For example, if the transaction volume of a particular location is less than ideal, that doesn’t mean the opportunity is dead in the water. Instead, see if you can set up a tiered system that rewards higher fees to the store owner if they reach certain transaction thresholds. In many cases, you can settle on a deal across several different scenarios.

There may be some initial effort to get your ATM business up and running, but it remains a profitable investment. And with an excellent pitch to an ideal business client, you can achieve a positive return in a short amount of time. For proof, check out Dan’s Story about how he got started with his own ATM business.

Want to learn more about how to get in the ATM business? For additional insights into structuring and pitching ATM contracts and building partnerships with business owners and other ATM operators, enroll in our Online ATM Business Course. 

An ATM is an excellent source of secondary income. The industry is booming — global machine installations resting at 51.66 kiosks per 100,000 persons, almost double the 27.2 recorded in 2008. As long as there is a need for cash, consumers will demand access to ATMs. And that offers profit opportunities for stand-alone entrepreneurs or vendors with physical store footprints.

But, if you’ve ever wondered how to own and operate an ATM business then you must be aware that, like any business, owning an ATM has upfront costs, involves time and capital investments, and has a heightened exposure to risk. Without the correct infrastructure or know-how, several barriers (kiosk purchase, setup, fees, warranty, payment processing, etc.) can cut into your investment returns, even within the profitable ATM business.

To help entrepreneurs enter the market and take advantage of the benefits ATMs provide, we created two turnkey service programs that make setting up a kiosk simple and easy. If you’re interested in starting an ATM business, read on to learn about our ATM Placement and ATM Ownership programs.

Free ATM Placement Program

The ATM Placement program is a set-it-and-forget-it solution: we complete every setup requirement involved with an ATM installation. It is the easiest way to enter the ATM market and offer cash dispensing services with the least amount of startup hassle. As a payment partnership, all profits are split, but since you do not own the ATM, you minimize security risk, maintenance costs, and liquidity vaulting. Just provide the location, and we will do the rest!

Who Can Benefit From the ATM Placement Program?

The ATM Placement program is ideal for current store owners or those with access to real estate. Having an ATM on-premise creates several secondary business improvements:

• Increased organic foot traffic: An ATM can increase the total volume of customers that enter your store. Retailers claim they earned an additional $3000 in last-minute purchases upon introducing a standing BTM.
• Improved customer payment convenience: Customers will make more purchases if they can pay with their preferred purchase method.
• Access to new markets: Customers will enter your store to pull out cash, leading to better consumer engagement.
• Increased in-store purchase volume: The average customer will spend 20-25% of all withdrawn cash from an ATM at your business.
• Increase overall cart size: Consumer shopping cart sizes tend to increase the value of their shopping cart if they have easy access to bank services.

You earn each of these benefits in addition to the passive income gained from transaction fees. Plus, since the ATM is placed, not owned, there are no upkeep costs or time-consuming manual labor involved with kiosk operations.

Our ATM placement program is ideal for those who are interested in learning how to own and operate an ATM kiosk, need limited risk exposure and have a brick and mortar store: gas stations, grocery stores, shop owners, etc.

What Are the Costs?

Under the ATM Placement Program, the kiosk and its service are delivered 100% free, and we can even supply initial liquidity. All profits work under a revenue-sharing model, depending on your level of involvement (i.e., those who do not bring liquidity to earn a percentage of each transaction, while full placement programs take 50% of each surcharge). You receive your shared earnings via ACH deposit after machine transactions are processed.

What Services Do You Receive?

We complete all tasks involved with owning an ATM for you, including:

• Setup and Installation
• Shipping
• Maintenance
• Security Monitoring
• Cash Transportation
• Payment Processing and Network Access
• Signage

The ATM Ownership Program

The ATM Ownership program works along the same lines as the placement program but includes ownership of one or multiple kiosks. You take on more risk and service work, but you have complete control of your ATMs and their profits.

The Ownership Program is designed for those who want to manage a machine yet still desire a payment partner for all other service requirements. We can assist with the setup process of your ATM business in addition to processing payments (a necessity for each ATM transaction), but you own and operate the ATM itself.

Who Can Benefit From the ATM Ownership Program?

ATM Ownership is ideal for entrepreneurs who work with large-scale operations or wish to derive more profits from existing ATMs. You will gain all the same benefits as an ATM placement, except now you have complete control to optimize your business for further earnings.

Of course, your risk exposure increases, and the total upkeep, but if you have the time, upfront capital, and you know how to own and operate an ATM kiosk, you can earn robust profits from transaction surcharges.

In particular, salespeople, entrepreneurs, investors, and ATM operators can benefit from the ownership program: the extra effort and investment can lead to higher returns.

What Are the Costs?

First and foremost, those who wish to own a kiosk must pay the upfront price for the ATM (ranging from $2,000-$5,000). Plus, costs related to maintenance and security will increase. For example, you will have to pay for armored vehicle transportation once your ATM cash supply fills, supply liquidity for your machine, fix and repair potential damage, and do extra work to keep your ATM safe and secure.

What Are the Perks?

The Ownership Program gives you complete control over your ATM, but as your partner, we can help streamline and assist any upkeep issues through several services:

• Access to our armored vehicle partner with nationwide standard rates
• Use of our dependable cash vaulting supply program for liquidity
• Standard payment processing requirements
• Use of our expert technicians for repairs
• ATM Training programs for employees
• Replacement parts and fast shipping
• Help with installation

We also offer an online course that teaches you how to start an ATM business from scratch to generate a six-figure income with very little outlay. Click here to learn more about the course.

Owning an ATM is a profitable enterprise. For both vendors of new entrepreneurs, an ATM leads to tangible benefits and passive income. But there are costs and service requirements for running an ATM.

To help your kiosk earn a positive return on investment, we created our ATM Placement and Ownership programs. As your partner, we can help you install and maintain a well-run ATM.

Contact us to learn more about how to own and operate an ATM business or to request a consultation about buying an ATM. Alternatively, call us today at 1-866-295-2329 to discuss our ATM Placement Program.

It seems that global business has embraced a cashless society. In 2022, the value of digital payments is expected to reach a massive $7,860,739 Million. A 2018 survey on payment type preferences for U.S. customers reports that only 7% of respondents use cash payments when shopping at a department store. On all fronts, it appears that the amount of consumers and businesses that use physical money is on a steep decline.

Digital payments put the value of ATMs into question — without cash, there is no need for physical payment stations. Yet, the total number of ATMs has grown, last recorded in 2020 at 51.66 kiosks per 100,000 people worldwide (up from 29.76 in 2010). The payments industry has changed due to digital transformation, but ATMs remain resilient.

So, is it really a dying technology? Let’s look into the current state of payment kiosks and how the future of the ATM continues to show positive growth.

Is ATM Ownership Still a Profitable Business?

As long as there is cash, there is a need for ATMs. But those who warn about the imminent demise of the standard ATM state that consumers no longer require convenient access to cash. With digital payments, e-transfers, and smartphone wallets as the now-common money transaction method, people might no longer need a cash dispensing machine (money dispensation accounts for 95% of ATM use).

Plus, more data about the decline of physical branches within the banking industry offer no support for the continued use of ATMs. Banks closed more physical locations in the past ten years than opened: JP Morgan shuttered 334 branches, while Deutsche slipped from its high of 3083 locations in 2010 to 1891 in 2020.

With fewer brick-and-mortar stores and less consumer demand for direct cash access, those who argue against ATMs appear wise and prophetic.

But while digital transformation has altered the landscape, it poses no threat to the use of ATMs.

Digital forms of payment continue to grow, but the use of cash remains relatively stable, with close to 20% of all payments in the U.S. still made with physical fiat currency. The ATM is more than a single piece of hardware — it is an endpoint device that delivers a series of benefits to a consumer, such as convenience, brand awareness, access to service, and contactless function.

Digital payments did not delete the ATM: they just changed its purpose as a cash dispensing machine. A kiosk now functions as a multi-purpose service opportunity. Digital transformation only helped the ATM by forcing it to evolve.

The Internet of Things and ATMs

In fact, the Automated Teller Machine is one of the first hardware applications to leverage advancements in digital technology, notably with the Internet of Things (IoT).

IoT is an umbrella term that refers to the digital network that connects physical devices. Through sensors, cameras, and artificial intelligence technology, IoT connects every device to the central network. Across the information highway, any object can help exchange data that help provide better service to real-world applications.

The ATM is the perfect example of how a physical device can integrate with digital IoT properties for improved function:

• On-Demand Services: With an increase in smart touch technology, an ATM can provide a friendly and simple method for consumers to locate unified services across entire countries for heightened convenience. Ease of use and access to improved services will increase user engagement.
• Fraud Reduction: The upgrades in digital security via multi-factor authentication, better software, and physical hardware such as cameras and keypad skimmers provide enhanced safety that can reduce total fraud (Losses from ATM attacks have decreased in Europe).
• Enhanced Data: ATMs connected to the IoT network can analyze customer behavior and give bank leaders actionable insights on ATM usage and service offerings. Real-time intelligence will further increase customer retention through personalized upsell.
• Wearables: As a more direct example, ATMs can connect with customer wearables, helping notify users of payments or requested cash dispensation through personal smartwatches and another haptic tech.

An ATM is a touchpoint for consumers; it represents the perfect method for banks to interact with their modern clients when married with digital tools.

The Future of ATMs – What Is the Outlook?

ATMs will become a core component of the smart cities that IoT will help facilitate. The ATM has moved away from a simple cash kiosk and is now a branding opportunity, a means to collect service data, and a way to interact with consumers who demand more from their banks.

The new concept of ATM usage is called ATM 2.0, a reference to the switch from simple cash kiosks attached to physical branches to machines that leverage digital transformation for continued profitability.

ATM 2.0

For example, the continued integration with mobile applications will heighten customer service opportunities. You can already request cash withdrawals from your phone, all with cardless access, helping remote and unbanked locations. Some ATMs will also create an online wallet, allowing users to connect to other fintech applications and digital payments methods offered by PayPal or Square.

Of course, digital tokens and hot wallets connected to cryptocurrencies will also help change how money transfers. Case in point: Bitcoin ATM installations have exploded in growth with over 14,000 kiosks placements worldwide.

New security features such as biometrics and facial recognition will protect users, allowing banks to create smart ATMs that offer most standard branch service requests. Mckinsey even stated that the new concept kiosks could improve branch effectiveness by 60-70%.

ATMs Are Innovative and Profitable

At first glance, digital tools appeared to have rendered standard ATM kiosks obsolete. With the rapid changes in the payments industry, many skeptics declared the end of ATMs.

Yet, while the introduction of digital transformation certainly changed how consumers demanded access to their banks, it has not affected ATM usage. Instead, it has forced ATMs and banks to innovate, allowing for new IoT integrations and the creation of ATM 2.0. Kiosks now function as primary customer touchpoints that use digital tools for better service. The ATM remains a prominent and profitable technology.

Are you looking to start your business journey as an ATM entrepreneur? Get in touch with ATMMachines to discover how you can own a kiosk through our ATM placement and ownership programs.