Can you remember the last time someone came into your store and paid for their morning coffee with plastic? Recent consumer research shows that people would rather pay for small purchases with cash. Studies also show that people expect access to their money in convenience stores, so a new ATM in your shop will satisfy your customers.

A 2015 study by Cardtronics researched how consumers spend their money on different kinds of purchases. This survey discovered that 63% use cash when they visit their local convenience store. It also found that 77% of consumers prefer to use their dollar bills for purchases of less than $5. A similar study by CreditCards.com came to the same conclusion in 2014, with 65% of shoppers preferring paper over plastic for small purchases.

It is likely that many potential customers expect to be able to withdraw their money from a machine in your store. In 2012, Nielsen completed a study for Cardtronics that researched money machine use by consumers. They found that people use ATMs in convenience stores more often than they use machines found in other types of retail outlets. The same survey shows that 75% of shoppers plan on withdrawing their money from a machine when they visit a convenience store.

An automatic teller machine will give your regular customers a convenient source of cash that they can spend inside your store. In order to connect your customers to their money, you will need to find someone to install and service an ATM. Merchant365 is a company that specializes in placing reliable machines in businesses across Western Canada. Our customer service lines are open 24 hours a day. Contact us today to find out how we can set your business up with an ATM.

Photo Credit: Pixabay.com

There are approximately 6,300 banks today in Canada compared to approximately 19,000 ATMs. The way that people obtain cash has changed with financial institutions hustling to keep up with the demands of its consumers for more convenience.

Financial Institutions Closing Branches

Experts with Forbes suggest that the number of banks will shrink to less than 3,200 within the next decade. Even more banks are expected to close their smaller branches. Therefore, consumers are turning to ATMs to get cash. Globally, according to MasterCard, cash remains the most common method of payment.

Consumers Still Using Cash

In a 2016 survey, Mercator Advisory Group asked consumers to self-report rather they used cash more, less or about the same as they did one year ago. Over 64 percent of respondents said they had used cash about the same while 21 percent said their use of cash had increased. Only 15 percent reported that they used less cash in 2016 than in 2015.

Consumers Demand Convenient ATMs

According to Visa, the number one reason that consumers give in choosing their financial institution is convenient locations of ATMs where the customer already shops and lives. One of the challenges being faced by financial institutions is giving consumers the cash they demand. More institutions are joining large ATM networks like Allpoint allowing their consumers surcharge-free access to their money when using an ATM within the network.

Cash Use Highest Among Millennials

While many older people may still like the thought of going into a financial institution, according to a survey by Chase Bank, that is not the case with younger consumers. The survey found that over 80 percent of millennials preferred to use the ATM with most young adults use an ATM at least weekly to obtain the cash that they need.

Financial institutions will need to keep up with demand by consumers who love the self-sufficiency of running to the nearest ATM when they want money.

If you would like more information about renting an ATM machine in Edmonton or want to contact us to discuss ATM placement and merchant payment options, please contact us.

The ATM, acronym for automated teller machine, was sought out in the 1950’s. There was a strong desire for the simplification of banking. As a result, Japan, UK, Sweden and U.S. made collective efforts to pursue the developments of self-service banking. One of the first machines patented and approved for use was the Bankograph invented by George Simijian in 1963. It was released on a experimental basis in New York City for less than a year due to consumer rejection. Like most innovations, there would be more versions and replications to follow. Shortly thereafter, the United Kingdom launched a cash machine in North London. An event was organized where the local celebrity comedian, Reg Varney, utilized the machine to give it more exposure and encourage use.
The early ATMs used tokens or vouchers to grant access to machines as plastic cards were not yet being used. In 1969, the Speytec cash machine changed the game. Their machines used plastic cards with a single magnetic strip. British engineer, James Goodfellow later introduced the idea of the PIN for added security to be stored on the cards.
The first official network ATM was attributed to Donald Wentzel through the Chemical Bank and was known as the Docuteller.

Soon enough, not only was the ATM accessible at or near banks, they began to appear at shopping locations, gas stations, airports or just about anywhere a large amount of people populated. Most of these ATMs are either established by banks or independent sales organizations. ATMs not established by a bank is considered a ‘White Label ATM.”

The innovation of the ATM has come a long way since the 1950’s. We can expect more advancements in the near future. Some projected advancements include cardless ATM access and live teller conferencing.

If you would like more information about renting an ATM machine in Edmonton or want to contact us to discuss ATM placement and merchant payment options, please contact us. Get the conversation started! #yeg #supportlocal #edmonton #Alberta

photo credit: salesteamdevelopment.com