ATM Industry Trends and Forecasts

ATM Industry Trends (and Forecasts)

The future of the ATM industry has been a topic of debate since the possibility of a cashless society appeared on the horizon. So far, that cashless society hasn’t materialized. The ATM market is expected to be worth over $21 million by 2020. And, 80% of consumers still use ATMs as the primary form of interaction with their bank.

So, ATM machines aren’t going anywhere. But, consumers are changing, and they expect more services and a better experience from ATMs. Now, ATMs are improving to meet customer demands for convenience and functionality.

Here are the most important ATM industry trends and forecasts that will take the ATM business into the future.

Triton Used ATM - Upgrade Your ATM via ATMDepot

Updating ATM Machines Is Big Business

90% of ATM machines shipping globally are sent to replace existing ATMs. Older models are being replaced to meet younger users’ expectations of performance and convenience.

New ATMs provide contactless transactions, mobile pre-staging, and financial institution “branch-in-a-box” capabilities. These new ATMs can provide up to 90% of branch-based technology and services. Brighter displays, dynamic branding, video banking, and touchscreens will also become more common in modern ATM machines.

The new features are designed to cater to younger, digital-first generations who expect greater ease of use and digital capabilities from automated services.

Replacing older ATM installations to appeal to a younger user base means more opportunities for ATM owners to install ATMs in prime locations which already have an ATM. ATMs that target the younger generations also indicates that cash will remain king for a long time.

Cash Recycling Is On the Rise

Globally, more banks than ever accept automated deposits from ATM machines. And, an estimated 16% of the world’s ATMs are capable of cash recycling.

Cash recycling, combined with automated deposits, offers an excellent opportunity for ATM owners to reduce their ATM vaulting workload and costs, while providing ATM users with valuable functionality.

Ultimately, this means more potential daily uses, with less cash management.

ATM Personalization and Marketing

Modern ATM hardware offers more opportunities for ATM owners to use software to differentiate their ATM machines from the competition. ATM machines that connect to CRM systems can display personalized messages, and seasonal and location based marketing. This means more possibilities for revenue generating partnerships between businesses and ATM owners.

Improved ATM software also helps ATM machines meet consumer demands for a seamless transition between mobile and physical channels.

These improvements bring ATM machines closer to functioning as complete, automated bank branches.

Smart ATMs are Coming

2019 could see smart ATM machines become a mainstay in the ATM market. Smart ATMs can offer:

  • Multi-currency cash dispensing.
  • Loan repayment.
  • Bill pay.
  • Ticket dispensing.
  • Account opening.

Not all smart ATMs are capable of providing all of these services. But, smart ATMs will give banks new incentives to work with third-party ATM owners. These partnerships would help banks reduce costs and offer more convenience to customers. And, more opportunities to provide ATM machines to financial institutions will be a boon for ATM owners.

But, smart ATMs won’t replace standard cash-dispensing ATMs. Cash-dispensing ATM machines are the best option for high-traffic and temporary ATM locations, where banking services are unnecessary.

New ATM Designs Will Open Up Opportunities for ATM Owners

Solar and wireless ATM machines are fairly uncommon, right now. But, these new designs enable ATM owners to place ATMs in previously inaccessible locations or provide a more reliable ATM solutions for remote and temporary ATMs.

Additionally, solar ATMs may offer ATM owners more pitch angles for persuading location owners to accept an ATM, since solar technology is popular with environmentally conscious customers.

ATM machines with larger screens will also become more popular as ATMs offer additional functionality.

Overall, ATM machines are getting better. And, they can provide more value to businesses. That means more business for ATM owners.

Woman Using ATM Machine with SecurityATM Security Will Continue to Improve

EMV will continue to expand in the ATM industry. And, other security features, such as cardless ATM transactions, will become more common. Security features that add security and increase convenience will be in high demand, once the service has proven itself secure.

However, new security measures are not predicted to have any significant effect on current ATM models. The adoption of new security measures depends on consumer acceptance. Most ATM users know and trust the current batch of ATM security protocols. So, customer adoption of new security features will be slow.

Managed Services Is the Fastest Growing Segment of the ATM Market

The managed services segment of the ATM market is expected to grow 9.6% between 2015 and 2020. Businesses that have traditionally owned their own ATM machines are outsourcing their ATMs, and paying for ATMs as a managed service.Happy ATM Machine Owner via ATMDepot.com

This is great news for independent ATM owners, because it means that there are more opportunities for ATM owners to partner with banks and provide off-site ATM locations.

Yes, there are alternatives to cash purchases and ATM machines. But, people still prefer cash for everyday, low-value purchases.

Although cashless options are valuable, financial institutions aren’t working toward a completely cashless society. The goal is to provide the best cash and cashless options. That way customers can access their accounts when and how they want. This means that ATM machines will remain a staple in the purchasing and banking cycles.

In fact, it’s most likely that ATMs will play a greater role in the future as ATMs adapt to provide a more seamless interface between the digital and physical economic spaces.

[Infographic] Bitcoin Business vs. ATM Business: Fees Explained Simply

Bitcoin. Who hasn’t heard of it? News of this new form of digital currency is sweeping the nation. Every day it seems we hear of someone else making lots of money from blockchain in the Bitcoin Business. Needless to say, it keeps us interested. But, there’s been a pretty big downfall to investing in the currency lately. Transaction fees are becoming quite a problem. In December 2017, a man moving $25 of Bitcoin paid a $16 fee to do so. According to CNBC, people are paying $28 on average to make Bitcoin transactions. The average transaction fee at an ATM machine is currently around $4. Both fees have been increasing, but Bitcoin’s transaction fee is doing so at a significantly higher rate.

What is Bitcoin?

In its simplest terms, Bitcoin is a digital currency. A cryptocurrency. Created in 2009 by anonymous user Satoshi Nakamoto, the goal was to create a decentralized electronic cash system. Decentralization is one of Bitcoin’s most important characteristics. This means that no single institution controls the bitcoin network. This puts people that don’t like institutions to have control of their money at ease. Another defining difference between common currencies and Bitcoin is pseudonymity. The system does not need to know the identity of any parties involved when Bitcoin is transacted. This anonymity attracts illegal activity which takes up almost half of Bitcoin transactions at the moment.

What is Bitcoin Infographic

Source: http://mompreneurasia.com/wp-content/uploads/2017/06/btc-1024×690.jpg

Transaction Fees in the Bitcoin Business

With so many success stories in the media, people are rushing to enter the cryptocurrency business. Transaction fees are usually the first and most visible cost that everyone in the network will experience. With more users joining in, fees are increasing. According to the graph below, transaction fees for Bitcoin in October 2017 total over 22 million dollars. The average transaction fee around that time: around $60.00. The biggest pain point most people in the network have is how much the fees are fluctuating. If you enter the Bitcoin business, it is in your best interest to check www.cryptofees.net daily, or a similar site, to find out the current average transaction fee. The constant variations and shifts keep Bitcoin miners on their toes.

Bitcoin Transaction Fees - Graphic

source: https://cryptovoices.com/network-transaction-fees/ (2018)

ATM Business Transaction Fees

One of the most common fees we encounter every day has been rising as well. ATM surcharges have reached an all-time high. CNBC reports Pittsburgh has the highest current average at $5.19 while San Francisco has one of the lowest at $3.90. The slowly increasing fee ensures Independent ATM Deployers continue to make a good amount of passive income. As averages continue to rise, remember to update your ATM surcharges to ensure you make more money.

Interested in learning more about the ATM Business? You’re in the right place. Don’t leave this page without getting the information you need. Download our FREE ATM Business Guide by clicking the link below.

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ATM Fees Increasing Over Time

source: http://time.com/money/4966816/atm-fees-all-time-high/

TX Fees vs. Surcharge

Although ATM surcharges have been increasing, the fee doesn’t fluctuate as fast as Bitcoin transaction fees. The average annual increase, according to Bankrate 2017, has been 4.7% over the past 19 years. Bitcoin transaction fees are different for each transaction. On this day, the minimum Bitcoin transaction fee charged is recorded at 0.0963%, however, the largest fee recorded is 29.3309%. That’s right. Someone paid $43.00 to send $103.61. Good thing we don’t have to pay a percentage to withdraw money from an ATM.

The average ATM surcharge has been increasing lately, but it’ll be a while before it’s equal to that of Bitcoin. Most people are wondering whether getting into the Bitcoin business would be beneficial. The answer is … probably. If you’re wondering whether getting into the ATM business is profitable, the answer is yes. IADs are racking up on these surcharges that happen to increase each year. You may have to check daily what you’ll pay to transfer Bitcoin, but surcharges don’t usually change on a daily basis. The ATM business is a lot more secure and reliable, however, the Bitcoin business is definitely booming. We’ve created this infographic to help illustrate the difference between bitcoin fees and ATM surcharges.

Bitcoin Business vs ATM Business Fees

[Infographic] The Bitcoin Business vs The ATM Business Fees

How to Profit from the ATM Business - Free Guide

New ATM Machine ADA Standards

New ATM Machine ADA Standards

A new law affecting ATM machines has passed under the Americans With Disabilities Act (ADA) and went into effect on March 15, 2012. The new ATM machine ADA standards required full compliance by the deadline date of March 15, 2012.

If you are an ATM Operator, an ATM company or a retail merchant operating one or many ATM machines, these new requirements will affect every active terminal in your ATM portfolio or retail location.

Today I’m going to tell what you need to know about these upcoming changes and how it will impact your business.

Starting on March 15, 2012 customers with disabilities should find using an ATM easier than ever before. Regardless of whether you agree or disagree with this new ADA requirement your ATMs must be in compliance by March 15th.

Some ATM machines may require that you make enhancements to the way your customers physically access and interact with your ATM machines. Some of the new design standards and requirements include:

Height and Reach:
The reach requirement will change from a height of 54″ to 48″ to the top working button. This will help to ensure customers can easily access the input controls of the ATM. The exception to this change is drive thru ATMs.

ATM Machine height is now 48 inches

Clear floor space:
The area in front of the machine needs to equal 48″ x 48″ (16 square feet).

ATM Machines needs 48 inches by 48 inches of clear floor space

Accessible route:
One unobstructed side of the clear floor space must adjoin an accessible route or another clear floor space leading up to the ATM and connecting to the clear floor space in front of the ATM. This is for wheel chair accessibility.

ATM ADA Accessible Route

Voice Guidance:
All ATMs must be speech enabled to service visually impaired customers. This may require a 3.5mm female jack be accessible for head phones.

ATM ADA Voice Guidance Standards

Display Screen:
Visibility from 40″ above the center of the floor in front of the ATM, characters on the screen must be in San Sarif font. A minimum of 3/16″ high and must contrast with their background.

Braille Instructions:

Braille Instructions to initiate the aforementioned voice guidance feature must also be provided.

ATM ADA Standards for Braille Instructions

Function Keys:
Function keys must be designed to contrast visually from their background surfaces.

Input device:
Input device controls must be tactically discernible, meaning the key surfaces must be raised above the surrounding surfaces.

Numeric Keypads:
Keypads must be arranged in an ascending or descending layout. The enter key should be marked with a raised circle, the clear key with a raised left arrow, and the cancel key should be marked with a raised X. The add value key should be marked with a raised plus sign and the decrease value key should be marked with a raised minus sign.

ATM ADA Standards for Numeric Keypad

If your location has multiple ATMs the most accessible ATM must meet these new 2012 ATM standards. However, the law requires the terminal inside a location and one outside the same location be considered two separate locations. In cases like these both must be compliant.

These laws will be applied to all lobby and walk up thru-the-wall ATMs. There will be no safe harbor granted for existing units and no grandfathering of currently deployed machines.. While there are many ATM operators and banks taking a “wait and see” attitude this could potentially be a costly proposition as any ATMs that don’t meet ADA standards by the 2012 deadline could result in a civil penalty of up to $55,000 for a first offense and double that amount for subsequent offenses.

ATMDepot suggests you take this opportunity to inventory your existing ATMs and record the manufacturer, model number, and year manufactured. It would also be wise to note each terminals software and speech capabilities.

If you need help, we suggest you check with your respective vendors for more details regarding upgradability and cost. ATMDepot is able to offer several upgrade kits and exceptional pricing on new replacement ATMs in cases where you need to upgrade or replace entire machines (generally older ATM models) in order to be compliant.

Be especially careful of used or previously refurbished ATM machines at this time as there are a lot of non-compliant machines on the market that cannot be setup. Make sure the ATM you plan to purchase, especially if it’s used or refurbished, is already completely upgraded or compliant with new ADA standards. All new machines shipped from ATM manufacturers today come fully ADA compliant.

You can find more information about the ADA standards for 2012 at ada.gov

You can find us at atmdepot.com or you can follow us on Facebook, Twitter or Youtube.

[VIDEO] Explosives Used to Break into Machine during ATM Robbery, Thieves Caught on HD Camera

On August 11, 2017, two criminals drove their SUV up to a Gas Station ATM Kiosk with a plan. They planned to execute an ATM robbery by blowing up the ATM with some sort of liquid explosive. It is clear from this video, it’s not the first time they are attempting this. They are wanted by the FBI. The authorities were very excited to see the quality of our security footage.

Authorities_On_Scene

Authorities at the Crime Scene of the ATM Robbery in San Diego, CA

When you start using explosives on an ATM, you attract a lot of attention. You get the local police, sheriffs, SWAT, the Bomb Squad, ATF, and the FBI involved. That’s a lot of manpower hunting you down.

These guys are wanted by the FBI. It’s not just a local crime.  Is a few grand worth having to hide and run for the rest of your life? I don’t think so.

The suspects think they got away with it. However, as time will tell, and with the help of this HD video, and the enhancement tools Federal Law Enforcement agencies have available, they will most likely do time behind bars for this ATM robbery.  Maybe they will save all the money they stole to pay for their lawyer. They will need it.

I’ve been in the ATM business since 1994. Since then, I’ve helped hundreds of Independent ATM Deployers (IAD’s) start, run, and maintain successful ATM businesses. I’ve personally sold or installed hundreds and hundreds of ATM machines. I currently manage thousands of machines and hundreds of thousands of ATM transactions nationwide and I’ve never, ever seen anything like this.

This location has been a customer of ours for over a decade. We’ve never had any issue until we installed a new kiosk.  While this small kiosk does not appear to be bomb proof, the old kiosk building we used previously onsite was. Unfortunately for us the gas station – car wash is undergoing a remodel and needed to demolish the building, so we had to move the ATM to the other side of the parking lot.

In order not to inhibit the authority’s investigation, we won’t go into the details of what the authorities knew in this article.

However, now that we know all the details we can help others.

So, if you plan to install a kiosk and you are one of our customers (or want to be), please contact our office for some additional help.

We learned an expensive lesson, so we hope to use it to educate our customers.

ATM Depot can certainly help you avoid the same fate. We thought we prepared for every security scenario but they proved us wrong on this one. The key is that we learned an awful lot from this and can now assist our customers even better when dealing with outdoor ATMs.

**** UPDATE ****

September 28, 2017

After many calls between the account manager, Jeremy, and the FBI and ATF, on this situation, we learned that the authorities were able to issue a subpoena at the home of Scott Michael Petri. We are not sure how all this went down but we speculate that the FBI was able to leverage the information obtained in the video of the ATM robbery. According to law enforcement, one of the suspects bragged to a confidential informant about the crime. Upon serving a subpoena at the suspects home, the Law enforcement authorities say they found a drill, a gas cylinder, clothing and other incriminating evidence in his home that matched the items in the surveillance video during the crime.

Court documents allege (and video shows) Petri used a cordless drill to make two holes in the ATM machine’s housing. A second unidentified suspect (now in custody) approached the ATM with an open flame (see video, looks like a cigarette) and lit a fuse.  The suspects drove to the other side of the gas station and the ATM exploded. See the entire ATM robbery (edited for time) in the video above.

Suspect_Searching

The suspect (circled) is searching for the cash box after the ATM robbery explosion

The August robbery was the second time this year an explosive device was used on an ATM in San Diego, according to the FBI.

**** UPDATE ****

October 5, 2017

Scott Michael Petri faces a charge of using an explosive to damage property relating to a robbery at the Chevron Station and Pit Stop Car Wash on Miramar Road just south of the 15 Freeway entrance. The suspect was picked up and booked on October 5th and transferred into Federal custody and is being held in the Federal Prison in Downtown San Diego by the ATF. Bail has been set at $250,000.

ATM_Suspect_Arrested

Public arrest records for Scott Michael Petri. One of the suspects in the ATM robbery.

Visa & MasterCard ATM Interchange

Visa and MasterCard Interchange Rate Comic

Effective April 2010 MasterCard International announced they have lowered the Interchange for Cirrus ATM Transactions by $0.18.  Many ATM Companies must now pass this on to the owners or operators of the ATM in the form of a network fee.

The ATM Industry Association is conducting a study on the impact of the new fee structure.

ABOUT THE AUTHORS:

Noah Wieder, Founder of ATM Depot an ATM Machine Processing Company, has been in the ATM Machines business since 1994 and was founder of the former XtraCash ATM. Jeremy Camhi, National Sales Manager, ATM Owner and resident in-house ATM Expert has been in the ATM Machines business since 1999. Follow us on Twitter