Are you starting an ATM machine business and are considering the best place to put the ATM machines? If YES, here are the best places to put your ATM machines. Owners of ATMs understand the numerous benefits ATM machines bring. Having a conveniently located ATM doesn’t just help the consumers that use it – it also helps the businesses that provide it.
Have it in mind that when a business lets you place an ATM in its location, it also gains the benefit of being able to keep its customers inside. For customers that come with an ATM card and either don’t have a debit card or are unwilling to use it at a swipe terminal, the only way to complete a transaction is with cash. But with an ATM in their location, the business prevents the customer from leaving and potentially not returning.
Note that the business doesn’t just hold on to the customer, it also increases his average spending level. Moreover, if he is making a withdrawal from an ATM at a business, it is probably to spend money in the same business location.
And when an ATM is in a publicly accessible location like a hotel lobby or a convenience store, it can also generate traffic. When a business has someone come in to use the ATM, it gains the opportunity to convert them into a customer for other goods or services.
Therefore strategically positioning the ATM to draw the customer into the store can increase the success rate of this strategy. Also note that when a customer uses an ATM, it doesn’t cost you or anything. ATMs don’t charge you a swipe fee or a transaction fee – they charge the person withdrawing the money.
If you are an ATM owner or running your own ATM business, choosing the right location(s) for your ATM machine is one of the most important and strategic decisions you will make. ATM fees can be an excellent source of passive income, but ATM machines rely on foot traffic to be profitable. Mounting your machines in the path of people who need cash is key to your success.
What are the Best Places to Put an ATM Machine in 2023?
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Banks, credit unions, and other financial institutions are indeed the first places people reach out to for an ATM. The majority of people who have a checking account or another type of bank account will visit their local bank at all hours to make a cash withdrawal.
Most people will pay for expensive meals at restaurants with a credit card so they don’t have much need for cash. But for more casual places where the check is likely to be a little lower, ATMs will have some use. Certain eateries and restaurants are likely to have a lot of cash transactions. Plus, these locations get plenty of foot traffic even if people don’t need the cash to pay for their meal.
Nightclubs and Bars
Nightclub and bar owners who have an ATM machine available more or less see significant extra income — both from surcharge fees and the fact that customers spend more money in the bar when they have access to cash.
Whether they’re purchasing food or souvenirs, people are going to spend a lot of money when visiting any kind of entertainment venue. Note that aside from all the foot traffic, prices at an arena are often way higher than outside, forcing people to visit the ATM to get more cash. Putting an ATM in an arena also gives you a little more flexibility when it comes to raising the surcharge to use it, which can help you make a little more money.
Hotel guests almost always need cash for various reasons. Placing an on-site ATM is a wonderful way for hotel business owners to generate extra income from transaction fees and encourage guests to spend more money in the hotel itself.
Few businesses get more foot traffic than hotels, and this fact alone makes it the perfect spot for an ATM. Note that individuals who are far from home won’t be able to visit their bank to pick up extra cash, so they’ll visit the nearest ATM, which is likely in the hotel lobby. In fact, larger hotels may even have an ATM on every floor, so there’s definitely a high need for ATMs inside hotels.
Many customers prefer paying cash for groceries rather than using a credit card or debit card. Others like the convenience of grocery stores being a “one-stop-shop” for their needs. Providing an on-site ATM at a grocery store satisfies both needs and improves most store owners’ profit margins.
Gas Station/Convenience Store
Gas stations and convenience stores are among the most common places where people look for ATMs. These two businesses are cut from the same cloth and are filled with people paying with cash, making it ideal for an ATM, if not two. Have it in mind that some gas stations are starting to offer cheaper prices for those paying in cash, which makes an ATM necessary.
Festivals and Events Centers
Also note that in very large events and festivals, attendees are always in need of extra cash. By providing ATM access, you will encourage them to spend more money on vendors while keeping them on the premises longer.
Reports have it that the longer you keep customers in the casino, the more money they spend. Therefore, giving them quick access to more cash is one of the best ways to do this.
The burgeoning legal cannabis industry tends to depend heavily on cash transactions due to banking regulations. Providing an ATM on-site almost ensures increased sales and profits.
ATM machines are known to be quite profitable at bingo halls for the same reasons they work at casinos — they keep customers playing for longer.
Operating an ATM fleet costs time and resources, so it is important to be strategic when selecting where to place your terminal(s). It is imperative to understand the geography of the potential ATM site prior to committing a terminal to a location. Research the market and strategically determine the most lucrative option(s). And, as always, be on the lookout for competition. When a location sees one successful ATM, competitors will follow.