Surprising ATM Trends:
According to the ABA (American Bankers Association), at
the end of 2009 290,100 ATMs were installed in non-bank
off-premise (retail) US locations, compared to 1998's 84,000
units. These same non-bank off-premise units today
represent 68.2% of 425,010 total ATMs installed in the US.
ATMs aren't just for banks anymore:
Most of this tremendous non-bank US ATM growth can be attributed
to the recent ability of an ATM to reach out from banks
into American business (convenience stores, shopping malls,
movie theaters, etc.). This new explosion could have several
possible reasons:
• The cost of buying
and operating ATMs has dropped dramatically
• Surcharging has
made investing in ATMs substantially more profitable
• Businesses have
increased their efforts to gain "that competitive
edge"
Attitudes Toward Convenience
Also, an important factor behind a rapid surge in ATM surcharging
(instituted in 1996) stemmed from a discovery by banks and
other ATM owners that cardholders will pay for convenience.
As cardholders become more familiar with ATMs, they tend
to value that convenience more highly. Business owners with
ATMs were very quick to realize that an ATM is certainly
one convenience item that brings their customer back, often.
ATMs are an integral part of a bank's strategy to attract
customers - can it now be any different for a retail business?
It is widely reported that 7-Eleven stores (Southland Corporation)
has determined that 20% of money withdrawn from their ATMs
is spent in that store. But, the principal reason 7-Elevens
have ATMs is due to the increased foot traffic they
bring, and the fact that Automated Teller Machine users
are habit driven. Could ATMs be the replacement for the
Coke and Pepsi machines that customers used to search for?
Without An ATM?:
You've been wondering what the business owner displaying the
ATM Inside sign outside his door knew that you didn't? You've
watched and studied the competition, and now you are thinking
about an Automated Teller Machine.
What ATMs provide:
Unlike other forms of payment, there are
no fees
to pay and there's no risk of chargebacks, as
is the case with point-of-sale terminals. A customer paying
with cash removes any risk of bad checks.
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