Any small business owner will tell you that there's really no such thing as too much revenue. Well, if you have a business that receives steady foot traffic, placing an ATM on your property could be an effective way to generate passive monthly income.
We’ve outlined ten ATM statistics that every business owner should know, shedding light on consumer behavior, market trends, and techniques to boost profitability through the intelligent integration of ATMs into your operations.
ATM Usage Statistics
ATMs are used on average 300 times each month, and 40% of users use them 8-10 times each month, reflecting consumers’ need for cash.
Here’s a breakdown of monthly ATM transactions:
|ATM Usage||Percentage of Users||Number of Transactions per Month|
|Very frequent users||40%||8-10|
|Rare users||10%||Less than 1|
This data shows that a significant portion of the population relies on ATMs for their banking needs, with 40% of ATM users making 8-10 transactions per month.
As a business owner, understanding these figures can help you make informed decisions about whether to invest in an ATM for your business.
Frequency Of ATM Use
Using these figures, you can make an informed decision about whether or not to invest in an ATM for your business. Here’s a breakdown of some ATM usage statistics:
|Global ATM Market Size (2020)||$20 billion|
|Number of ATMs Worldwide (2023)||3.2 million|
|Global ATM Market Growth (2021-2026)||6.9% CAGR|
|Cardless ATM Evolution||White paper publication on cardless ATMs and cash access|
These statistics demonstrate the continued importance of ATMs in the financial landscape and their potential for growth in the coming years.
Perception Of Importance Of Access To Cash
The perception of the importance of access to cash remains significant in today’s increasingly digital world, particularly for unbanked and underbanked households.
According to the 2021 FDIC National Survey, nearly 81.5% of U.S. households were fully banked, leaving a substantial percentage still relying on alternative banking services like ATMs for their financial needs.
It’s clear from ATM usage trends that cash is still king in certain contexts. Even as electronic transactions continue to gain popularity, the demand for physical money remains strong – such as in emergencies or in specific industries where cash still rules (e.g., restaurants and bars).
Business owners can capitalize on this sustained perception of importance surrounding ATM access while improving their bottom line through increased foot traffic and additional revenue streams.
Market Trends In ATM Usage
The ATM market has experienced rapid growth and advancement in recent years, with several emerging market trends. The following table summarizes the key market trends in ATM usage every business owner should be aware of:
|Global Market Growth||The global ATM market is expected to grow at a CAGR of 6.9% from $19.94 billion in 2021 to $28.82 billion in 2026, with major players like NCR Corporation, Diebold, and Wincor Nixdorf AG leading the way.|
|Increased Presence in Asia-Pacific||The Asia-Pacific region holds a significant share of the global ATM market, making it an attractive region for ATM businesses to target and expand their operations.|
|ATMs for the Unbanked||With an estimated 4.5% of US households being “unbanked” in 2021, independent ATMs are increasingly located in areas not served by banks or financial institutions, providing vital access to cash for these individuals.|
|Smart ATMs||Newer ATM models are being designed to offer additional banking services, such as bill payments, check cashing, and a wider range of financial transactions, making ATMs more versatile for users.|
|Contactless Payments and Mobile Integration||Future trends in ATM technology include the integration of contactless payment methods and mobile wallets, making it easier and more convenient for users to access their funds without using a physical card.|
|Accessibility for People with Disabilities||ATM manufacturers are focusing on making their machines more accessible for people with disabilities, ensuring that everyone can access their services easily and safely.|
As a business owner, staying informed about these market trends in ATM usage can help you make well-informed decisions when considering the integration of an ATM in your business.
Benefits Of Owning An ATM Business
Owning an ATM business can provide substantial profit potential, increased foot traffic to your store, and an additional revenue stream.
One of the primary benefits of owning an ATM business is the profit potential. With each transaction, ATM owners can collect a fee from both the customer’s bank and the surcharge paid by the customer.
This dual revenue stream can add up quickly, making ATMs a lucrative investment opportunity. Additionally, unlike many other businesses that require constant upkeep and management, once an ATM machine is set up in a good location, it can provide passive income without requiring much maintenance.
Increased Foot Traffic
One of the most significant benefits of owning an ATM in a business is the increased foot traffic it can bring. Locations that provide an ATM for public use typically see a 5% increase in foot traffic.
This is because customers who visit your establishment are more likely to return if they know they can easily access cash when needed. People tend to gravitate towards businesses that offer convenient and accessible services, and having an ATM available sends a message that you care about their needs.
Additional Revenue Stream
One of the significant benefits of owning an ATM business is the additional revenue stream it provides. Business owners can earn a steady and passive income through ATM transactions, surcharge revenue, ISO fees, and reduced credit card fees.
For instance, if you own a convenience store or gas station, having an ATM in your outlet can provide additional income for your business while also serving as a valuable service to your customers who need cash on hand.
Mistakes To Avoid When Starting An ATM Business
Starting an ATM business can be lucrative, but it’s essential to avoid common mistakes such as underestimating costs and failing to research locations.
One of the most common mistakes when starting an ATM business is underestimating costs. Many entrepreneurs need to consider all the expenses involved, such as equipment, installation, maintenance, and compliance fees.
They may also need to overestimate their potential cash flow and revenue projections. This can lead to a shortfall in funds and make it difficult to sustain the business long-term.
It’s important for business owners to create a comprehensive budget that takes into account all these factors and allows for unexpected costs or setbacks.
To illustrate just how crucial proper financial planning is, consider the fact that purchasing used equipment may seem like a smart way to save money upfront but could ultimately end up costing more due to frequent repairs or replacement needs.
On top of that, there are compliance regulations involved with owning ATMs that require regular inspections by authorized personnel and adherence to industry standards which come with recurring associated fees as well.
Failing To Research Locations
One of the biggest mistakes that new ATM business owners make is failing to research locations, which can lead to a lack of foot traffic and profits. Here are some pitfalls to avoid when choosing where to place your ATM:
- Not considering demographics: Make sure you place your ATM in an area with a high concentration of potential customers who are likely to use cash.
- Overlooking competition: Research the location of other ATMs and similar businesses that offer similar services. It’s essential not to place your ATM too close to a competitor.
- Ignoring local regulations: Each city or state may have different regulations regarding ATMs, including permits and fees required. Ensure you understand these regulations before opening an ATM business in a specific location.
- Not evaluating foot traffic patterns: Look for areas with high foot traffic, such as shopping malls, convenience stores, gas stations, and transportation hubs.
- Failing to secure a prime location: A prime location requires more rent but will provide excellent exposure for your brand, more foot traffic, and higher profits.
Remember that the success of your ATM business depends on selecting the right location; therefore, adequate research should be done before launching it in any location.
Ignoring Compliance Regulations
Compliance is a crucial aspect of running an ATM business that should never be overlooked. Ignoring compliance regulations can lead to hefty fines, legal troubles, and even the loss of your business.
Some common compliance concerns for ATM owners include complying with financial regulations, PCI DSS requirements, state licensing laws, and ADA accessibility guidelines.
Research all applicable regulations and consult experts if necessary to avoid any potential problems. Compliance software tools could also help you stay on top of regulatory changes while ensuring that your business remains compliant at all times.
How ATM Owners Make Money
ATM owners make money through transaction fees and surcharges.
Transaction fees are a primary source of revenue for ATM owners. Typically, the owner receives around 30% of the fee charged to customers for each transaction.
In addition, there may be additional revenue streams such as surcharges and reduced credit card processing fees when customers withdraw cash from an ATM rather than paying with plastic.
It’s important to note that bank ATM fees can also impact how much money an ATM owner makes, as these fees can discourage people from using non-bank ATMs.
One of the ways ATM owners make money is by placing a surcharge or convenience fee on each transaction made by customers. This additional cost can range from $2 to $5 per withdrawal and goes directly into the owner’s pocket.
However, it’s important to note that some banks may charge their own fees for using an out-of-network ATM, which could deter customers from using your machine. As such, it’s crucial to do your research and price your surcharges competitively to maximize profits without driving away potential users.
ATM Security Statistics
ATM theft and fraud remain a significant issue, with an estimated $1 billion lost globally in 2020, but installing security devices such as cameras or alarms can help deter criminals.
Frequency Of ATM Theft And Fraud
ATM theft and fraud continue to be a significant concern for businesses. In fact, the frequency of these incidents has been on the rise in recent years, surpassing previous records.
ATM robberies are one significant type of theft that can occur when criminals physically steal cash from an ATM or from customers using the machine. Another threat is card skimming, where criminals use devices attached to an ATM to steal credit/debit card information and PINs, which they then use to make fraudulent purchases or withdraw money from ATMs.
Business owners with ATMs on their premises must implement proper security measures to prevent such incidents. For example, installing security cameras near the ATM can act as a deterrent against potential thieves and help authorities identify suspects if a robbery does occur.
Additionally, regularly updating firewalls and other cybersecurity measures can protect against electronic payment fraud prevention tactics employed by sophisticated hackers looking to exploit vulnerabilities in cash machines.
Steps To Secure Your ATM
After investing in an ATM, make sure to take measures to secure it and prevent fraud. Here are some steps you can take:
- Choose a secure location for your ATM: Place your ATM in a well-lit area monitored by surveillance cameras or security personnel to deter attackers.
- Secure the network: Make sure your ATM is connected to a secure and encrypted network that uses multifactor authentication to prevent unauthorized access.
- Monitor regularly for fraudulent activity: Regularly check bank statements for suspicious transactions, such as cash withdrawals or transfers from your account.
- Educate users on PIN protection: Remind users not to write their PIN down or share it with anyone, as this could compromise the security of the account.
- Enable card blocking: Enable card-blocking services so that users can quickly block their cards in case of theft or loss.
- Use contactless payments: Offer contactless payment options using mobile phones, which reduces the risk of fraudsters stealing user details at ATMs.
- Keep software updated: Regularly update software and operating systems on your machine to keep up-to-date with the latest security patches and bug fixes.
- Train employees on security best practices: Educate employees on what to look out for so they know what to look for in potential threats.
- Partner with a reputable vendor: Choose a vendor with experience in securing ATMs and who provides regular maintenance and support services to ensure maximum uptime and minimal downtime due to technical issues.
By following these steps, you can ensure that your ATM is well-protected against unauthorized access or fraudulent activity, giving customers peace of mind when using your service.
The Benefits Of Having An ATM In Your Business
Having an ATM in your business not only increases foot traffic and revenue but also reduces credit card fees and improves customer satisfaction.
Increased Sales And Foot Traffic
Having an ATM in your business can be a game-changer, especially when it comes to increasing sales and foot traffic. By providing customers with quick access to cash, you’re making their shopping experience more convenient, leading them to spend more time in the store and make additional purchases they may have otherwise skipped.
Moreover, having an ATM can also lead to increased sales through impulse buying. Customers who withdraw cash from your ATM will likely spend that money directly in your store instead of going elsewhere.
Research shows that customers who use ATMs during their visit tend to spend anywhere between 20-25% more than those who don’t.
Reduced Credit Card Fees
One of the significant benefits of having an ATM in your business is reduced credit card fees. By providing cash withdrawals on-site, you can encourage customers to use electronic payments less frequently, which can lead to lower payment processing costs and interchange fees.
This not only saves money for both the business owner and the customer, but it also enhances privacy and security during transactions.
According to recent data, credit card fees have been steadily increasing over time, with high figures charged by banks and credit card companies costing consumers over $24 billion annually in other related fees, including overdrafts, foreign exchange conversion rates, balance transfer charges, etc.
Therefore implementing an ATM solution at your location provides an alternative payment option that can significantly cut down on these rising costs while maintaining their financial independence as well as customers’ satisfaction levels boosted with fewer payment disruptions.
Improved Customer Satisfaction
Having an ATM in your business can significantly improve customer satisfaction. Customers appreciate the convenience of having easy access to cash whenever they need it, without having to go out of their way to find an ATM elsewhere.
Furthermore, modern ATMs offer a variety of features that make them more appealing to customers, including cash withdrawal options, personalized settings, contactless payment methods, and accessibility options for people with disabilities.
Future Trends In ATM Technology
Future trends in ATM technology include the integration of contactless payment and mobile banking, making it easier and more efficient for consumers to access cash.
Contactless Payment And Mobile Integration
Contactless payment and mobile integration are some of the latest trends in ATM technology that every business owner should consider. With digital banking, customers can now access their accounts using mobile banking apps, electronic funds transfers, online banking, and payment gateways.
Biometric authentication is also becoming increasingly popular for faster and more secure transactions. With the rise in eCommerce and POS systems, businesses need to keep up with fintech innovation to remain relevant in today’s market.
Increased Accessibility For People With Disabilities
ATM accessibility is crucial for people with disabilities, including those who use mobility aids or have vision and cognitive impairments. In fact, there are 33 accessibility statistics that business owners need to keep in mind for 2023.
Making ATMs more accessible can improve financial independence for many individuals who may otherwise struggle to access cash or complete transactions. For example, a report examines ATM accessibility for people with physical disabilities and complements the focus on accessible ATM information.
In India especially, where online banking is gaining popularity rapidly but still has lower penetration among older adults from remote areas and people living with disability compared to younger urban users without disabilities, ensuring that online banking platforms are accessible via screen reader software compatibility making it easy navigate websites using keyboard shortcuts would help in bringing them into the mainstream economy by giving them equivalent opportunities as others.
How To Choose The Right ATM For Your Business
When choosing the right ATM for your business, consider factors such as location, transaction volume, and customer needs, and work with a reputable vendor to ensure that you get the best machine for your specific requirements.
Factors To Consider
If you’re considering adding an ATM to your business or starting an ATM business, there are several factors to consider regarding the type of machine and location. Here’s a list of important things to keep in mind:
- Location is crucial – choose a spot with high foot traffic and accessibility for customers.
- Decide between purchasing or leasing an ATM based on budget and needs. You may also qualify for a free ATM through a placement or partnership program.
- Determine what types of transactions you will allow on your machine, such as deposits or withdrawals only.
- Consider the fees associated with processing transactions and setting surcharge amounts.
- Look for machines that meet current compliance standards and have proven security measures to protect against fraud.
- Choose a reliable vendor that offers ongoing maintenance and service for your machines.
- Research market trends and demand for ATMs in your area before deciding.
- Evaluate potential profitability based on location, transaction volume, and fees.
By considering these factors, you’ll be better equipped to make informed decisions about owning or operating an ATM business.
Choosing The Right Vendor
Selecting the right vendor is crucial when choosing an ATM for your business. Considering factors such as equipment purchase, maintenance, and customer service are vital in making the right decision.
Look for a vendor who provides secure network connections, robust security features, and cash management services to ensure that your customers’ transactions are handled efficiently and safely.
A reliable vendor will also provide training on how to operate the equipment, comply with regulations, and offer marketing strategies to maximize your investment.
Marketing And Promoting Your ATM Business
Developing a marketing strategy and promoting your ATM business is crucial to its success. From social media campaigns to offering promotions, there are numerous cost-effective ways to raise awareness and increase foot traffic.
Developing A Marketing Strategy
Marketing is crucial for the success of any business, including ATM businesses. To promote an ATM business effectively, developing a marketing strategy is essential, and this should include identifying target markets and tailoring marketing efforts to reach them effectively.
Another aspect of effective marketing is creating promotional materials that stand out and grab attention. Using eye-catching designs and highlighting the benefits of using your machines can help attract customers to your ATMs over those owned by competitors.
Utilizing social media platforms and offering incentives for customers who use your ATMs can also increase engagement and drive traffic to your machines.
Cost-Effective Ways To Promote Your ATM
If you own an ATM business, promoting it effectively can significantly impact your success. Here are some cost-effective ways to promote your ATM:
- Social media marketing – Use social media platforms like Facebook, Twitter, and LinkedIn to promote your ATM business. Create engaging content that includes attractive visuals and offers relevant information about your ATMs.
- Email marketing – Develop an email marketing campaign to reach your target audience with promotional offers. Keep the content simple and concise and ensure that it is optimized for mobile devices.
- Referral programs – Offer incentives for customers who refer their friends and family to use your ATMs. This is a great way to expand your customer base while rewarding loyal customers.
- Local advertising – Place ads in local newspapers, magazines, or on community bulletin boards to get the word out about your ATMs in the area.
- SEO optimization – Optimize your website with relevant keywords related to ATM services for better search engine visibility. It can lead to higher traffic from potential customers who are looking for nearby ATMs.
By using these cost-effective ways, you can gain more exposure for your ATM business without incurring substantial costs while enhancing brand awareness, increasing revenue streams, and attracting new customers.
Ready To Get Into The ATM Business?
If you own a business or property that gets a good amount of foot traffic, or you’re an entrepreneur considering starting an ATM business, you could earn significant passive income with ATMs.
No business model is 100% guaranteed, but by understanding these statistics, with the right location, and the right customer base, you could be adding tens, if not hundreds, of thousands of dollars to your bottom line every year.
If you’re ready to take the plunge and get into the ATM, contact ACME ATM today. Our ATM sales experts are more than happy to talk through your options, any questions you may have, and explain more about our ATM programs.