In an ATM version of "The Dating Game," deployers who want to offer advanced functionality find themselves talking to a diverse and unfamiliar group of potential partners – such as check-cashing companies, online merchants and telecommunications providers.

In an effort to jumpstart the matchmaking process, ATM manufacturer NCR has cast itself as an intermediary with a group of eligible, attractive contacts.

Through its Convenience Connexions program, launched about 6 months ago, NCR intends to introduce deployers to companies like money transfer giant Western Union and check risk management specialist Certegy Check Services. Both Western Union and Certegy are also partners in 7-11's Vcom project, a deployment of NCR-manufactured, advanced-function kiosks that is reportedly about to advance from a pilot phase – with 94 machines in Florida and Texas -- to rollout.

Strength in numbers

Phil Kasper, NCR's assistant vice president of marketing for the Americas, said his company hopes to leverage its business relationships, as well as technology know-how. To do so, NCR has aligned itself with what Kasper calls "best-of-breed transaction providers" like Certegy, Western Union, Metavante and Transaction Network Services.

Tom Cwik, Certegy's senior director of business development, said that Certegy expects to identify deployers interested in automated check cashing through its partnership with NCR more quickly than it could on its own.

"We think there's definite potential for expansion outside of 7-11," Cwik said. "One of the biggest challenges is finding out who wants to deploy these kinds of terminals. We're not in the business of deploying ATMs; we're in the business of providing check risk management services."

With well-known brands such as NCR and Western Union lending clout to the program, Cwik said "it's just a matter of time" before more deployers ante up for advanced functionality.

According to Kasper, NCR believes the program may have the most appeal, at least initially, for chain retailers.

Advanced functionality on aisle 6

The best candidates, Kasper said, are grocery stores. They typically offer the types of services that can be offered via an ATM – such as check cashing and money orders – at a customer service counter. "For them, it becomes an automation play," he said. "They already have a clientele doing these transactions, so they don't have to build that base from scratch."

That market is broadening, Kasper said, as more discount general merchandisers like Wal-Mart and Target add groceries to their shelves. "What we've found is that the minute they start selling groceries, they also start selling money orders and money transfers and cashing checks," he said.

Kasper also sees synergies between advanced-function ATMs and the increasingly popular self-checkouts, which NCR manufactures and sells through its Store Automation division. While most grocers have taken a hands-off approach to ATMs, contracting with outside parties to manage their machines, Kasper predicts that may change as they realize that the two terminals require much of the same upkeep – such as cash replenishment and daily settlement.

Financial institutions with significant off-site networks are also good candidates for advanced functionality, Kasper said. Unlike retailers, many have a network of existing ATMs – often in high-volume sites. Another advantage is their familiarity with ATM operations, he said.

Device driven

The types of transactions offered will depend on a deployer's existing hardware and/or willingness to upgrade, Kasper said. The Vcom, based on the Personas 78 platform, is equipped with a money order printer, check reader and cash acceptor.

However, a deployer who only wants to offer money orders and money transfers would have no need for a check reader. Similarly, the primary reason for a cash acceptor is to make transactions available to the unbanked.

All of these options are currently available on the Personas 78. Some options are available on other NCR models, including the Personas 86, which can be configured with a check reader and cash acceptor.

Kasper claims that NCR's APTRA Edge software, which is based on XFS and designed to be vendor neutral, can deliver the same functionality on full-function ATMs manufactured by other companies.

NCR plans to add more transaction providers to its mix soon, both in new categories like e-commerce and in existing categories like money transfer. Offering multiple options in some categories is key to attracting retail deployers, many of whom want to maintain existing contracts with providers, Kasper said.

 "This is one of the more exciting times in the EFT industry right now, with a whole new set of competition. 7-11 is a great example of that," said Russ Green, senior vice president of sales for Mosaic Software, another participant in both the Vcom project and the Convenience Connexions program. Mosaic's middleware is used to route transactions from the ATM to various transaction providers.

"7-11 has evolved a market for itself that the banks haven't," Green added. "The technology and the acceptance of the products have already proven themselves (in the Vcom pilot). Now it's about putting the right relationships together."