Citizens Financial Group Inc. has partnered with EDC, a Walnut Creek, Calif.-based ATM ISO, to deploy nearly 600 ATMs in Cumberland Farms stores from Maine to Florida in a deal that provides more evidence the industry is undergoing significant changes.
The agreement for EDC and Citizens Financial Group, which is based in Providence, R.I., is the second major ATM deployment contract the companies have announced in six months. In March, they agreed to deploy nearly 500 ATMs in Sunoco APlus Convenience Stores in 12 east coast states and the District of Columbia.
The deals also have opened the door wider for ATM manufacturer Nautilus Hyosung America Corp. to move deeper into the ATM market serving financial institutions. EDC is placing Nautilus Hyosung’s Monimax 5300 in Cumberland Farms and Sunoco stores, said Ann Torres, EDC assistant controller.
Nautilus Hyosung America, which is based in Coppell, Texas, is primarily known as an ATM manufacturer for the retail, off-premise market. Although that remains the company’s role, the firm’s strategy changed in 2008 when Citibank, one of the nation’s 10 largest bank owners of ATMs, began deploying Nautilus Hyosung machines in Citibank branches. Prior to the agreement with New York-based Citibank, NCR Corp., Diebold Inc. and Wincor Nixdorf AG controlled the deployment of ATMs for the financial-services market. Nautilus Hyosung's ATMs deployed in Citibank are deposit-taking and cash-dispensing machines. The manufacturer's machines placed in Cumberland Farms and Sunoco APlus stores are cash dispensers.
Citizens Financial Group, which is owned by the Royal Bank of Scotland Group in Edinburgh, is branding the Monimax ATMs. This will make cash withdrawals surcharge-free for Citizens Financial and Charter One bank customers, Torres said. Royal Bank of Scotland also owns Charter One Financial, which is based in Cleveland. Monimax stores 6,000 banknotes and it is compliant with American with Disabilities Act standards.
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Gil B. Luria, an analyst with Wedbush Securities in Los Angeles, said the Citizens Bank agreement is significant for Nautilus Hyosung because the company now can go to other financial institutions and explain to them this is inexpensive way of increasing their surcharge-free ATM footprint.
"Citizens Bank is a good reference for them [Nautilus Hyosung]," Luria said.
The deals raise EDC’s profile in the ATM ISO market. “With the Sunoco and Cumberland Farms placements, we already have added nearly 1,100 ATMs to our portfolio in several months,” Torres said.
The agreements also have made EDC’s senior management happy.
“We are excited to be a part of Cumberland Farms retail store experience in conjunction with our longstanding partner Citizens Bank,” said Mark Strauch, president and CEO of EDC. “We look forward to providing an innovative, high quality experience for all visitors at the Cumberland Farms stores, and we’re proud to have been selected by such a high profile and prestigious brand name in the convenience-store market.”
The ATM cash dispensers deployed in Cumberland Farms and Sunoco APlus stores provide a needed convenience for Citizens’ customers, said Martin Bischoff, vice chairman who heads consumer banking. “At Citizens, we are committed to convenience and to helping customers bank when, where and how they want,” Bischoff said.
Cumberland Farms, which is based in Framingham, Mass., selected EDC and Citizens Financial Group rather than renew its contract with Access To Money, a Cherry Hill, N.J., ATM ISO. Citizens and EDC announced the contract Aug. 4.
Access To Money disclosed in a United States Securities and Exchange Commission filing that it had lost the Cumberland Farms’ contract. EDC and Citizens Financial Group will deploy 583 ATMs in Connecticut, Delaware, Florida, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. EDC began deploying the ATMs in May, and the company will complete placement in September, Torres said.
Sunoco APlus is owned by Sunoco Inc., the Philadelphia-based petroleum and petrochemical company. Cardtronics Inc., the Houston-based ATM ISO, previously deployed ATMs in APlus stores before selecting EDC and Citizens Bank.
EDC deployed 487 ATMs in Delaware, Florida, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina and Washington, D.C. Citizens and EDC announced the agreement March 8.
With the two deals, EDC has nearly 4,000 turnkey ATMs under management, Torres said.