4 Ways an ATM Can Benefit Your Small Business

Automatic teller machines (ATMs) have been shown to offer small businesses multiple benefits. As small businesses continue to face increasing pressure due to challenging market conditions and the ongoing need to provide valuable products and services to their customers, while maximizing revenues, having an onsite ATM has proven to be an advantage with notable benefits.

Although people typically associate ATMs with banks, many small businesses have an ATM onsite, providing customers an added shopping convenience, and also capitalizing on additional revenue streams by joining in the growing ATM market. Just how big is the ATM market?

In a study conducted regarding the ATM global market, by ReportLinker, the global ATM market grew from $19.94 billion to $22.08 billion between the years of 2021 and 2022, despite disruptions due to the Russia-Ukraine war and continued global economic recovery from the COVID-19 pandemic. The same study by ReportLinker, identifies the global ATM market is growing at an average compound annual growth rate (CAGR) of 10.7%.

According to a recent study, the ATM market is expected to continue growing to reach $42.3 billion by 2026, with 3.1 million ATM machines globally, and ongoing growth rate CAGR of 6.9%.

With this increasing growth rate of ATMs globally, how can your small business take advantage of the benefits of ATMs and meet the competition? As a small business owner, you know first-hand the importance of continually growing the bottom line and intentionally working to keep a steady stream of customers coming back for products and services. For businesses that rely on foot traffic, not having an ATM onsite can negatively impact daily and monthly sales, ultimately impacting the bottom line. Alternatively, having an ATM onsite can greatly improve bottom line outcomes by preventing lost sales due to customers having access to cash. Customers with cash in hand are much more likely to purchase items even if they didn’t plan to spend, often due to the added convenience. In addition to all of the benefits passed on to customers, renting, leasing, or owning an ATM, and placing it onsite at your small business, also passes several benefits to your small business, which include:

• Revenue Generation - Increases in revenue generation through ATM surcharge and transaction fees.

• Boosted Sales - the possibilities of retail sales and other transactions by consumers spending while onsite increase by having an onsite ATM.
  

• Reduced Transaction Fees - small businesses with an onsite ATM benefit from reduced credit and debit card processing fees for transactions, along with related issues.

• Building Customer Loyalty - benefits of interacting with customers and earning future business is also possibly by offering an onsite ATM with added convenience.

#1) Revenue Generation

Many recent studies identify ATM machines as a catalyst for increased revenue generation for small businesses of many types and sizes. In fact, many business leaders often refer to ATMs as a mini business due to their capability of increasing sales and contributing positively to the bottom line without constant managing. Once an ATM is placed in the small business, limited amounts of time are required outside of maintenance, which many ATM service companies take care of. This frees up business owners to focus on interactions with customers and backend managing of day-today-operations, rather than paying attention to the processing of ATM cash transactions. Additionally, ATMs potentially increase sales, contributing to the bottom line each day, due to the added convenience for customers. For example, when customers visit your small business and use the onsite ATM, your business receives the surcharge and convenience fees associated with the transaction. These fees add up over time making revenue generation greater.

By having an onsite ATM, the small business is providing customers an added convenience, while also adding to the small business’ bottom line each month. In addition to adding surcharge and convenience fees, According to recent studies, 65% of ATM users go onto spend money in-store as they have access to cash. In addition, customers noticing the onsite ATM machine available for use may stop to shop. This accounts to increased revenue earnings from ATM surcharge and convenience fees and increases in retail sales. Here are some helpful insights relating to the ATM industry relating to your small business:

• According to Global Industry Analysts Inc., the number of installed ATMs throughout the world, is expected to increase by over 1 million units over the next few years (Global Industry Analysts Inc).
  

• In a report conducted by Lenpenzo, an estimated one-third of US consumers use an ATM at least once per week. The average onsite ATM located in a retail business averages 6-10 transactions per day.
  

• Small businesses may net $2.50 per transaction (after ISO fees). With an average of 6-10 transactions per day, the transactions result in a daily gross profit of $15-$25 per day. This number of transactions result in about $450-$750 per month if the business is open and accessible 7 days per week.

• In recent studies by Bankrate, in 2023, the average ATM surcharge is estimated at $4.73 per transaction. This is a record high for ATMs. Typically, the surcharges include two components, which are split into the average surcharge of $3.15 with the average fee of $1.58 charged by the bank for using out-of-network ATMs. In addition, the percentage that the business receives depends on the agreement worked out in advance with the vendor that supplies and services the machine.
  

#2) Earning Future Business

Other recent studies identify ATM machines as having the potential to contribute to earning the future business of customers visiting the small business, as they recognize the added convenience of having an onsite ATM. Offering ATMs for dispensing cash adds a reference point of convenience for every customer that walks through the door. Loyalty is built between the business and customer as ATMs give unrivaled accessibility, sustaining dedication through reliable accessibility. This consistency remains top of the customer's mind, creating a strong connection between convenience and dedication.

Additionally, by permitting clients to get to assets beyond customary banking hours, ATMs establish the groundwork for encouraging unflinching customer steadfastness. Their convenience says a lot to modern buyers familiar with on-request services.

Tips for building loyalty:

• Offering ATMs in remote areas, or where bank ATMs may not be available, offers a fundamental services to those customers that value accessing cash, even in the most remote locations.
  
• Offering ATMs to customers that do not have bank accounts but have credit cards or other types of cards, creates opportunities to build a long-term customer base.
• Placing ATMs in businesses, or retail locations, where cash payment is the preferred choice reinforces convenience and reliability.
• Accessing ATMs where customers prefer the ability to access cash and cash payment is preferred choice is a win-win.
• Earning future business from customers can grow from accessibility and continue due to strategic location and ongoing convenience. Customers experience the ATM brand is located in places of preferences and associate the service as an added benefit.
  

#3) Reduced Processing Fees & Associated Issues

According to the ATM Industry Association, approximately 84% of global merchant transactions involved cash, and despite the increase of debit and credit card transactions with point-of-sale technologies globally, cash transactions are rising. For small businesses that are limited, or not capable of investing in technology to offer point of sale payment processing, or may benefit from cash only transactions, offering an ATM maintains tangible benefits for fee revenue, while also keeping costs of card transactions to a minimum. Additionally, for businesses that prefer not to accept check payment, offering customers the ability to access cash for payment ensures collection with the benefits of no fees. An additional benefit is reduced charge backs. When customers pay with cash, processing a return is less likely. Cash payment ensures payment and long-term profit.

#4) Service and Marketing Tool

Onsite ATM machines also provide opportunities for on-screen promotion and advertising. Some machines allow ad campaigns to run, delivering increased profitability. Sophisticated programming technologies allow ATMs to function as interactive kiosks, promoting products and service offerings and also encourage return visits.
Consulting firm First Data Corporation notes that third-party advertisers are increasingly seeking access to ATM users, with the technology capable of presenting on-screen video ads, and ATM receipts can be printed with coupons or barcodes redeemable as part of special offers. ATM advertising is an effective new advertising medium that lets businesses target consumers on a one-to-one basis.

ATM screens are strategically placed to capturing the attention of customers as they make purchases or withdraw cash from the ATM. One of the key advantages of advertising with ATM includes the diverse range of advertisers and customers. ATM screens provide a platform for brands to showcase their products and services, while also entertaining and engaging customers during their store visit.

According to ATM Ad, in 2023, an estimated 20% can be generated on self-service terminals, better than the average for methods such as direct mail campaigns (ATM Ad 2023). Some ATM ads incorporate trivia and fun facts into ad content. This not only captures the attention of viewers but also adds an element of entertainment and education to their experience.

With all of the benefits available to small businesses by offering onsite ATMs, even during challenging times, business can experience increased revenues. Due to income improvement potential due to collecting surcharge fees, increased foot traffic, and brand loyalty, many businesses are taking advantage of adding an ATM to their inventory.

ABOUT OREGON ATM

Oregon ATM has been active in the ATM and payment industries for over 15 years. As a local, family owned business, we genuinely care about our clients, and we understand the laws and complexities around banking and payments, which are constantly shifting, changing and updating.

We are not only well-versed in existing regulations, but also stay actively involved in keeping up with regulations. Our experience provides our clients peace of mind with knowledge they can trust, so they can save valuable time and spend resources focused on growing their own businesses.

We understand that in the current market, it’s crucial for all businesses to have access to cash solutions – and that makes reliable ATM services an important part of operating your business. Oregon ATM helps business explore the ATM services to support their business goals. Whether a business is exploring ATM solutions, looking to buy, lease or profit-share, Oregon ATM works alongside business owners to help find the  ATM solutions that makes the most sense for a specific business. In addition, Oregon ATM has access to any brand of ATM, which provides businesses added flexibility and resources best suited to the business needs.