Convenience has become a unique selling point for many businesses, prompted by the COVID-19 pandemic slowdown and ever-changing customer preferences. Fortunately, because of digital technology, even small- to medium-sized companies today can make amazing investments to simplify customer journeys.
An ATM is a wonderful store addition that can improve customer experience and take your business to the next level. In this blog, learn how True POS can help your business unlock the power of ATMs.
What is an ATM?
An automated teller machine (ATM) allows a person to check balances, pay bills, withdraw money, transfer funds, and do other financial transactions without going to the bank branch and seeking the assistance of a teller. Instead, they just need to insert a debit card and enter a PIN into a specialized computer.
Doing transactions in an ATM owned by another bank may incur fees but can be avoided by using a machine operated by your bank. With the help of ATMs, you can access your checking and savings accounts anywhere in the world. However, international ATM and foreign transaction fees may apply when you use your debit card in a store or withdraw in an ATM overseas.
ATMs trace their roots back to the 1960s when they were first used to provide access to financial services even outside work hours. Machines became very popular, eventually becoming a vital part of the banking system and consumers’ daily lives.
As the years progressed, improvements were applied to modern ATMs to boost design, functionality, and security. There are more than two million ATMs worldwide, located in strategic areas like convenience stores, airports, restaurants, shopping centers, and casinos.
5 Benefits of Having an ATM at Your Business
So, why does your small business need an ATM machine? Here are just a few benefits.
1. Increase Foot Traffic
In today's highly competitive business landscape, increasing foot traffic involves valuable investments that can potentially contribute to daily progress. Keep customers coming back by offering them ease and convenience, in addition to your quality products and services.
By setting up an ATM, you give them another reason to visit your store and encourage them to return. When people step inside to withdraw money, they may see something interesting on your shelves or menu and make an unexpected purchase.
Put up signage saying that you're offering ATM services. If you are using social media to promote your business, mention that your store can also cater to their banking needs. The sooner you get the word out, the more potential customers you can attract at the earliest possible time.
2. Encourage Customer Spending
By placing an ATM in a strategic location (inside or near your physical store), consumers who need cash can quickly access their money. This increases the likelihood that they will spend in the same business establishment where they withdraw cash. This can benefit your business in two ways.
First, you can gain more customers even if your business only accepts cash payments. When consumers enter a store hoping to make a cash withdrawal and realize that there’s no ATM on-site, they might leave immediately. Chances are, they’ll head to a competitor and shop after making a financial transaction at their ATM.
Second, cash machines may encourage impulse purchases simply because they allow people to access the money they can spend at any minute. Business owners can further boost spending by placing product advertisements near their ATMs.
3. Reduced Credit Card Transaction Fees
Credit card companies and financial providers charge processing fees to authorize each credit or debit card transaction. The amount varies, but many charge merchants 1.5% to 3.5% for every transaction. These include interchange, assessment, and payment processor fees.
Card processing fees fall under operating costs. They may seem small but add up quickly, especially if most customers swipe their cards with every purchase. Because of high swipe fees, businesses have no choice but to increase the prices of their goods and services.
Merchants who cannot afford tech upgrades and processing fees just yet can offer ATM services to encourage cash spending. This may reduce the costs and stress, as they can avoid all the disputes, returned checks, and chargebacks associated with credit cards.
4. More Earnings
An ATM inside a business establishment helps attract more customers, thereby increasing earnings from sales. Furthermore, businesses can earn a commission for every transaction. Having an ATM on site is a business within a business!
However, profitability depends on your arrangement with the ATM company. Some merchants rent the machine and rely on their provider for maintenance work, from repairs to filling it with money when it runs out. In exchange, they get a portion of the charges.
Several merchants further increase revenue by placing screens on top of the cash machines and selling ad space.
5. Increase Customer Loyalty and Retention
Convenience is just one of the many factors that nurture retention and loyalty. Provide customers with the tools they need to shop faster and easier. An ATM in a safe area, alongside good product offerings, store ambiance, and marketing strategy, can regularly bring in happier, satisfied consumers.
The type of ATM you choose to buy or lease may affect your business’s progress. Basic machines only serve one purpose: to dispense cash. Other units, meanwhile, are more complex and can help with bill payments, balance transfers, and check deposits.
The latter is the better option to drive more people. They already know that you have an ATM onsite. Thus, they are most likely to return each time they need to buy something, knowing they can access their funds or conduct any financial transaction when needed.
A Reliable ATM Will Benefit Your Business
True POS offers reliable ATM services with flexible payment options, 24-hour support, and maintenance. We offer retail, wall-mounted, and mobile ATMs, depending on the needs of your business. Let us assess what’s best for you, so you can make more money and have a smooth monitoring process. Our skilled experts will assist you, whether you’re migrating from another system or starting from scratch!
