You've probably noticed how mobile payments have become a big thing lately, and the whole cashless trend is still going strong. Now, some people are starting to ask if we really need those ATMs hanging around in stores instead of banks.
But interestingly, cash isn't ready to call it quits just yet. According to the Federal Reserve's FedCash Services, the average amount of money folks carry – like in their pockets or purses – went up from $68 to $73 this year. So, even with all this digital buzz, there's still a demand for ATMs, especially in retail spaces.
Now, here's the kicker: ATMs are getting a bit more versatile. Yes, they do dispense cash, but they're branching out. Think cash recycling, paying bills, and even dabbling in cryptocurrency. So, stores can offer customers various services through these machines.
Bitcoin ATMs are having a moment in 2023. There are over 36,000 of these machines spread out worldwide. They hit a rough patch earlier in the year but bounced back. They've added more than 2,500 new machines since May, as reported by coinatmradar.
And wait up – banks are changing their game. With physical branches taking a backseat, ATMs are stepping up as all-in-one self-service banking spots. Customers can do way more than just grab cash. We're talking bill payments, cash, and check deposits – the whole package. And guess what? This isn't just at bank ATMs; retail spots are in on it too.
ATM Marketplace sat down for a chat with Ryan Loebs, Senior Director of Retail Cash Management Solutions at Hyosung Innovue Americas. They've got the inside scoop on all things ATM. We picked some of our favorite answers from the article, Retail ATMs evolve to meet emerging needs, by Bradley Cooper,
"Q. What are some of the innovations you see with retail ATMs?
A. 'Some of the innovations seen with retail ATMs include the integration of advanced software and hardware features. These innovations focus on improving functionality, security, and user experience. One notable innovation is the integration of improved security measures such as encryption and biometric authentication, which provide an additional layer of identity verification and protect customer data. Enhanced user interfaces make navigation and transaction processing easier for users. Cash recycling capabilities reduce the need for frequent cash replenishment, minimizing costs and enhancing operational efficiency. Innovations also include features like cash deposit functionality, contactless card readers for secure transactions, and integration with mobile devices, enabling users to initiate transactions through mobile apps. These innovations not only enhance security but also provide a seamless and user-friendly experience for customers using retail ATMs.'
Q. Where do you see the ATM's role in the larger self-service retail space?
A. ‘In the larger self-service retail space, ATMs play a crucial role as a convenient and efficient means of accessing cash and conducting banking transactions. They serve as an additional service for customers, attracting foot traffic to retail establishments. While the retail landscape is moving towards digital payments, there is still a significant portion of the population that relies on cash for their transactions. ATMs provide a bridge between the digital and physical currency worlds, catering to customers who prefer using cash or may face limited options for digital payments in certain locations.
Moreover, ATMs complement other self-service technologies in the retail environment, such as kiosks and mobile payment options. Self-service capabilities provide a bridge between digital and physical currencies. ATMs have the potential to evolve into comprehensive self-service kiosks, expanding their role in the overall retail industry.'
Q. Can you share on data on ATM usage in retail?
A. ‘The Federal Reserve released a study indicating cash withdrawals are down 10% year over year, over the past three years. That said, the average withdrawal amount is up over 30% — so consumers are visiting less but taking out more. A lot of this behavioral change was driven by the pandemic — which forced consumers to find new ways to leverage digital payments and services without leaving their homes. It is our belief that a convenient, retail-based cash-in network, which offers advanced services for payments and wallet loads, will drive a resurgence of foot traffic to the ATMs and retail stores alike.'"
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