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.
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.
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:
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.
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:
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.
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:
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.
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:
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.
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.
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TLDR: Adapting ATMs to offer a broader range of services can recoup lost revenue and position retailers as innovative, customer-focused establishments.