There are two primary groups who deploy and manage ATM’s: financial institutions, and independent ATM network operators. Financial institutions, such as banks and credit unions offer ATM services as a convenience for their customers to have access to banking functions after hours, as well as to decrease counter staff congestion during hours of operation. These ATMs offer their customer a host of services, such as cash withdrawals, deposits and money transfers. They can still be used by non-banking customers, but for a predetermined transaction-processing fee.
Independent ATM network operators, are entirely separate from any particular financial institution, they place ATMs in high traffic areas such as convenience stores, grocery stores, gas stations, restaurants and malls, to name a few. They capitalize on the need for convenience, and earn revenue from per transaction, withdrawal fees of approximately $3.70- $4.70. They focus on optimal placement, to justify the convenience fee, and it works well. People are willing to pay an added fee for a require service if it is more convenient or appealing than the alternative, or if they have no other choice. For example, ATM placement in convenience stores is mutually beneficial to ATM operators and convenience store owners. Convenience stores are often situated in high volume areas, and accessible to high foot/street traffic, and ATMs offer a commonly needed service that brings more customers in-store.
The independent ATM network operator business model is a profitable one, but when revenue streams begin to flat line, there is little that can be done to differentiate and boost profitability since independent network operator ATMs only offer cash withdrawals. So how do ATM operators stay profitable? Add a complimentary service to your existing ATM business with the deployment of self-serve bill payment kiosks. Bill pay kiosks function like reverse ATMs, by offering secure access to financial transactions in highly convenient locations.
Benefits of Bill Payment Kiosks to ATM Network Operators & Entrepreneurs:
- Create a recurring revenue stream complimentary to existing ATM business.
- Earn a percentage of each bill pay transaction, similar to the ATM withdrawal fee.
- Gain a competitive edge by offering expedited, cash-based financial services. Encouraging customers to complete multiple transactions in one visit – cash withdrawal and bill payments.
- Tap into new market, by offering services to a large and underserved segment of population – the underbanked. Over one-third of the U.S. population transacts primarily in cash due to no, or limited access to traditional banking services. An opportunity to serve a segment that used to be out of reach.
Want to learn more about how adding a bill payment kiosk to your ATM portfolio? Request a sales call!