Recent years have seen a rise in the popularity of cashless transactions via digital wallet apps and tap-to-pay card technology. While nobody can deny the ease of making swift digital payments, cash is still an integral part of our economy, and good old paper money still permeates several aspects of our everyday lives.
From tipping service workers and gifting cash on special occasions, to transacting with cash-only businesses or giving young ones a safe way to make minor purchases – we require paper money for a variety of reasons.
Yet branch closures of traditional banks are everywhere, making it increasingly hard to find a bank for in-person withdrawals. That’s why more and more people are turning to ATMs in unusual places – from the grocery store to the doctor’s office.
If you’ve been looking to increase your income, there can be several benefits to setting up your own ATM. But it does no good to drop an ATM where nobody will use it. To generate a profit, you’ll need to make a few calculated decisions about ATM placement to get started. Read on to understand how you can make an income from renting or setting up your own ATM.
The Benefits of Setting Up an ATM
Many of us would like to increase our income but have our hands too full to take on multiple vocations or work long hours. Some of us simply want to spend more time with our loved ones instead of taking up extra shifts and missing key milestones. Others may be looking for a way to expand their brand or get their small business into bigger leagues.
Setting up your own ATM could offer the solution to your worries. Not only is this a great way to increase your passive income and make a profit, but it is all possible with very little daily work. If you’re considering becoming an owner or renter of an ATM, then here are a few key advantages you’ll get to enjoy:
Improved Customer Experience
If you are the owner of a brick-and-mortar establishment, such as a restaurant or a convenience store, setting up an ATM on the premises can vastly improve your customers’ experience. So even if they did not mean to make a purchase or enlist your services initially, chances are high that you will have a happier customer who is more likely to return to your store to access the machine and offer their patronage.
Owning or renting an ATM is especially lucrative if you run a cash-only business, as it allows your customers to access paper money and spend it in the store. In most cases, the money withdrawn ends up being used within the establishment and goes back into your pocket. This, coupled with the fact that you earn a commission every time someone makes a transaction, can lead to increased revenue for you with almost zero daily effort.
Due to the vast scale of foot traffic ATMs receive, they are lucrative sights to place advertisements to market your brand or small business. Putting up branding at your ATM is a wonderful opportunity to gain viewership and introduce your business to new clientele. Even if you don’t wish to market your own business, other brands and companies would pay well to feature their advertisements on your machine.
Lower Credit Card Processing Fees
Having an ATM machine at your establishment makes it likelier that customers will pay in cash instead of by card. This reduces your overall credit card processing fees, allowing you to make a better profit over time.
7 Tips to Ace ATM Placement
All profits gained through an ATM business are usually contingent on two primary factors:
- high frequency of transactions
- relatively higher surcharge fees
So, by strategically placing your machine at locations that are well-frequented and that require higher surcharge fees, you’ll be able to turn a profit through your machine. This means that the key to establishing a flourishing ATM business lies in where you place or install your machine(s).
But this doesn’t have to be as daunting as it sounds. After you complete the initial licensing and set-up process, choosing the proper placement for your ATM is fairly simple if you follow the following key tips about proper placement:
- High Foot Traffic
To ensure a high volume of transactions, ATMs are best placed in locations that receive high foot traffic or masses of pedestrians. So areas such as crowded malls, busy thoroughfares, or crossroads are all great points to place your machine. Make sure your machine is clearly visible for the maximum convenience of users. Choosing a high-traffic venue also helps to make your customers feel safe while making withdrawals.
- Avoid Proximity to Other ATMs
While choosing a placement for your ATM, ensure that the location does not already have other machines in close proximity. This rule can be bent if the other ATMs in your location are mostly old or out of order – because most customers usually prefer to use a newer machine if given the choice. So before opting for a placement, do some scouting to make sure that your machine will be favored in your chosen location.
- Look for Cash-Only Establishments
Setting up your ATM on the premises of a cash-only establishment is a simple way to drive up the number of transactions on your machine. This works because customers frequenting the establishment are likely to use your ATM to withdraw cash for their purchase.
- Liquor Stores Have Higher Surcharges
It’s a good idea to set up an ATM inside a liquor store since they typically levy a higher surcharge on transactions. This means that you’ll make more per withdrawal which drives up your profit.
- Quick Access for Regular Maintenance
One of the responsibilities of owning an ATM is the maintenance and upkeep of the machine. After all, customers will not be inclined to conduct transactions if your ATM is dirty, broken, or out of service. That is why it helps to have easy access to your machine by placing it within your radius of daily visits so that you can easily spot any failings in the machine’s functioning or condition.
For example, setting up an ATM near your place of residence or close to your workplace is a good way to keep tabs on the condition of the machine without having to go out of your way. It is also helpful to keep the contact details of a repair and maintenance team on hand that is professionally trained to load cash or take care of any mechanical issues with your machine.
- Network With Business Owners
One of the most crucial tips for increasing profits from your ATM business is to build relationships with business owners or people working in the hospitality industry. Venues such as casinos and gentleman’s clubs are prime candidates for turning over a profit since ATMs placed within such establishments usually require a higher surcharge per transaction. Not to mention that the transactions taking place at ATMs in these venues are usually of a higher number.
However, setting up an ATM inside such places is not easy without preexisting relationships or prior contact with the owners of these establishments. That is why a key aspect of proper ATM placement is networking and building the right contacts so that you can gain access to such high-demand locations and set up your machine for maximum profits.
- Safety in Surveillance
Last but not least, remember to choose a location that feels safe for potential customers to make withdrawals from. This would involve a location that is well-surveilled, sees plenty of foot traffic, and has clean surroundings.
The Value of Good Placement
Choosing the right location is crucial for running a successful ATM business. Remember that the key to ATM placement is finding a place where the transactions are frequent and the surcharge is high. When in doubt, just place yourself in the shoes of your customer and recall what appeals to you when you’re using an ATM. After all, we’ve all been there at some point.
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