ATMs have been a source of income for convenience stores for a long time. But surcharged transactions are steadily dropping (around 3% year-over-year). Crypto ATMs are still trying to spring back from the Bitcoin crash. It has some retailers wondering if self-service consumer finance is worth the space.
The answer is a resounding “Yes!” Self-service financial kiosks present a lucrative opportunity for C-stores to boost revenue, attract more foot traffic, and better meet the changing economic needs of modern consumers. Here are several reasons why installing a self-service kiosk like BANK IN A BOX can be a game-changer for your C-store business.
Offering Diverse Cash Denominations Drives ATM Usage
Consumers are increasingly drawn to the convenience of withdrawing smaller cash denominations from ATMs. The demand is so prevalent that large banks like Chase and PNC are upgrading their ATMs to offer $1 and $5 bills in addition to the standard $20s. But you don’t have to be a bank or partner with one to give more variety to your customers. Advanced financial self-service kiosks like BANK IN A BOX also provide users a full selection from $100 bills down to $1 bills. Well, except for the $2 note. Yes, we know it’s real. There’s a reason your grandma buys them with Santa stickers over the portrait of Thomas Jefferson for the holidays.
Offering this wider range of denominations has almost immediate benefits. Even with a surcharge fee in place, ATMs offering multiple bill options typically see an increase in transactions by around 2-3%. Why are consumers attracted to smaller bills? With prices soaring on everyday goods and services, many customers have trouble keeping larger sums of money in their accounts or are being more careful about expenses. The last thing they want is to pull out more cash than needed from an ATM and risk an overdraft fee.
Catering to the Unbanked & Underbanked
According to the FDIC, there are still an estimated 5.9 million unbanked U.S. households. Individuals in these homes don’t use banks at all – relying heavily on non-bank financial options usually offered at the customer service counters of retail stores. In addition, approximately 18.6 million households are underbanked, over 71% of which use only non-bank financial services.
These unbanked and underbanked individuals are paying bills; loading prepaid cards; loading cash into digital accounts; converting cash into digital currency and vice versa; and performing many other financial transactions without ever stepping foot in a traditional bank branch.
Why shouldn't they use the convenience of your in-store self-service kiosks to manage these financial needs? Offering cash-to-digital and digital-to-cash conversion services is an excellent way to attract this market segment.
Freeing Up Staff for Better Customer Service
Many C-store operators and other retailers have their front-line staff assisting customers with small-dollar financial transactions such as loading prepaid cards, processing money transfers, loading Amazon accounts, or paying bills. While important services, this cash handling keeps staff from providing better face-to-face customer service, keeping shelves stocked, and focusing on up-selling your store's product offerings.
Fortunately, you can pull those routine cash transactions away from your counter by installing an all-in-one self-service kiosk like BANK IN A BOX. These financial kiosks can provide customers with a range of financial options in a single machine – and away from the register. Customers can walk in, meet their banking needs, and shop the store all in a single trip. Your staff can dedicate their time to customer experience and revenue-generating activities, rather than processing low-profit financial transactions.
The Future is Self-Service Finance
The appetite for convenient self-service financial solutions shows no signs of slowing. With an all-in-one kiosk offering ATM access, bill payment, cryptocurrency, money transfer, mobile reloads, and more, your C-store can position itself as a financial services hub for modern consumers.
Particularly for those unbanked and underbanked customers, having a self-service finance kiosk lets you be the one-stop shop to convert their cash seamlessly into digital funds for paying rent, utilities, loans, and other bills. You're giving an underserved market easy access to essential cashless financial services they might not otherwise have without a relationship with a traditional bank.
For banked customers, the self-service kiosk provides a single convenient destination to withdraw custom cash amounts, transfer money, reload prepaid cards, and handle other routine transactions without the hassle of visiting their bank branch.
By adding self-service finance capabilities, you diversify your store's revenue streams and attract more foot traffic from consumers seeking these modern financial solutions. It's a win-win for boosting sales and loyalty. So, don't wonder any longer if making room for self-service finance is worth it - the benefits make it a no-brainer for future-proofing your C-store's success.
Learn more about transforming your stores with BANK IN A BOX!
TLDR: Retailers worried about steadily dropping ATM revenues should consider switching to a system that offers more than $20 cash withdrawals to improve transaction volumes and earn more recurring revenue.
