In today's rapidly evolving retail landscape, store owners are facing a significant challenge: traditional ATM revenue streams are dwindling. As customers increasingly seek fee-free ATM access to avoid "paying for their money," c-store, grocery, and other retailers are experiencing a noticeable decline in revenue from surcharged transactions.
On average, these transactions are dropping by 3% or more year-over-year. So, how can retailers make up for the lost income from their ATMs? Expanded consumer self-service might hold the answer.
Easy access to fee-free is killing ATM revenue...but not the ATM
Surcharge-free ATM networks have been a growing trend for the past two decades. And who wants to pay for something when they know they can get it for free…probably just down the street?
Despite dipping surcharged transaction volumes, it is crucial to recognize that customers still value self-service finance. In fact, 67% of customers prefer self-service to in-person interactions, and a staggering 87% of U.S. customers enjoy using self-service kiosks. This preference presents an opportunity for retail stores to reimagine their self-service spaces and introduce new, revenue-generating services that cater to customer needs.
So, how can retail stores leverage their self-service space to recoup lost ATM surcharge revenue and meet customer demands? Let's explore some innovative solutions that are gaining traction in the industry.
Bill payment services are a win-win for customers and retailers
One of the most sought-after features in modern retail ATMs and kiosks is bill payment functionality. A striking 44.2% of consumers want the option to pay their utilities and other bills through self-service kiosks. This demand stems from several factors:
- Perceived speed: Customers feel that paying bills at a kiosk is faster when they don't have to interact with employees or cashiers.
- Privacy and convenience: Self-service options offer a level of discretion that many customers appreciate when handling financial transactions.
- Payment flexibility: Kiosks can accept various payment methods, including cash, credit, debit, or prepaid cards, catering to diverse customer preferences.
For retail stores, hosting kiosks with bill payment options can create a new revenue stream. Retailers can earn a commission for each bill payment transaction processed through their machines, turning a previously underutilized space into a profit center.
Customers want to convert their physical money into digital currency
In our increasingly digital world, many customers are looking for convenient ways to convert their physical cash into digital forms of currency. Retail ATMs and kiosks can meet this need by offering services such as:
- Prepaid card loading
- Digital gift card purchases
- Gift card reloads
- Amazon account funding
- …and other digital payment formats (P2P reloads, etc.)
Over 35% of customers express interest in seeing these options available in self-service kiosks. This service is particularly valuable for specific customer segments such as unbanked, underbanked, contract workers, tip earners, and those who prefer or need to deal primarily in cash.
By offering these conversion services, retail stores can cater to a broader customer base while earning a commission on each transaction. This not only helps offset the decline in traditional ATM revenue but also positions the store as a modern, customer-centric establishment.
Provide privacy and convenience for money transfers and money orders
Another area where retail ATMs and kiosks can shine is in providing money transfer and money order services. Traditionally, these transactions have been conducted at service counters, which can lack privacy and may be subject to limited operating hours. By integrating these services into self-service kiosks, retail stores can address several customer pain points:
- Enhanced privacy: Customers can conduct sensitive financial transactions without the need for face-to-face interactions.
- Extended availability: Kiosks can operate beyond regular store hours, offering customers greater flexibility.
- Improved security: Modern kiosks come equipped with advanced security features, providing peace of mind for both customers and retailers.
As with other services, retail stores can earn a commission on each money transfer or money order transaction, creating yet another revenue stream to replace declining ATM surcharges.
Maximize space and services with an all-in-one solution
To truly optimize their self-service offerings, forward-thinking retail stores are exploring all-in-one solutions like BANK IN A BOX - that combine deposit-taking and money-dispensing capabilities with the additional services mentioned above. This approach offers several advantages:
- Space efficiency: By consolidating multiple services into a single device, retailers can maximize the use of their valuable floor space.
- Increased customer satisfaction: Offering a wide range of services in one location enhances the overall customer experience and can drive repeat visits.
- Simplified management: An integrated system can be easier to maintain and update than multiple standalone machines.
- Potential for higher revenue: With more services available, there's a greater opportunity for retailers to earn commissions on various types of transactions.
By embracing this comprehensive approach, c-stores, grocery stores, and other retail establishments can transform their ATMs and kiosks from simple cash dispensers into multi-functional financial hubs that meet diverse customer needs.
Make more money by adapting to changing customer expectations
As the retail landscape continues to evolve, it's clear that customers' expectations for self-service options are changing. While traditional ATM usage may be declining, the demand for convenient, private, and versatile financial services is on the rise. By adapting their ATMs and kiosks to offer a broader range of services – from bill payments and currency conversion to money transfers and beyond – retail stores can recoup lost revenue and position themselves as innovative, customer-focused establishments.
The key to success lies in understanding and responding to what customers truly want from self-service options in retail environments. By offering the right mix of services, retailers can create new revenue streams, enhance customer loyalty, and stay competitive in an increasingly digital world. As technology advances, those retail stores that embrace these changes and adapt their self-service strategies accordingly will be best positioned to thrive in the years to come.
Learn more about transforming your stores with BANK IN A BOX!
TLDR: Adapting ATMs to offer a broader range of services can recoup lost revenue and position retailers as innovative, customer-focused establishments.
