Article
$5,000, $4,000, $3,000... and falling
The latest cash dispensers offer little in the way of extra features. But boy, are they affordable! by Ann All, editor
February 21, 2002
Triton and Tidel emerged as the giant slayers of the ATM market several years ago, stunning NCR, Diebold and other big manufacturers by introducing lower-priced machines. They became favorites of off-site deployers, and Triton and Tidel are now giants themselves.
A new group of Davids is taking on Triton and Tidel, hoping to grab a share of the still-thriving off-site market by cutting prices. Some machines cost as little as $3,000.
Manufacturers like Lipman USA, Rhino Systems, Cross International Technologies, TBS First, Universal ATM and Greenlink Technologies see themselves as champions of the little guy. Their cash dispensers may not offer as many bells and whistles as the competition, but it's tough to beat their price point.
Cash for the common man
Brett Mansdorf, national sales director of Lipman USA, said his Port Washington, N.Y.-based company created its line of Nurit ATMs for merchants who couldn't afford a Triton or a Tidel. "We wanted to go to the small guy on the street and empower him by giving him something better and a little different than the competition."
The Nurit ATMs, which are based around Lipman's own 2085 POS terminal, sell for $3,500 to $4,200. Four models in the Nurit 5000 series offer similar features but with different cash dispensers -- a Uninote, Magner, De La Rue or NCR.
Exclusive U.S. distributor TASQ Technologies, of Rocklin, Calif., began shipping the Nurit this month. Pleased with the initial response, TASQ President Ron Chaisson expects to move large numbers of the machines in May.
Ron E. Scaglione, president and CEO of TBS First, said his company has catered to the low-end market for years, noting that "when the Tritons and Tidels were selling at the $10,000 price point, we were the first to introduce a $7,000 to $8,000 retail product."
TBS has partnered with NCR on the 8000 ATM. Tampa, Fla.-based TBS produces the software and provides support and service for the NCR manufactured machine. Based around a Verifone 490 terminal, it's available for approximately $5,300 wholesale.
"We may not be the least expensive, but we'll be the least costly to maintain and the highest quality for the low entry-level market," Scaglione stressed.
"Retail locations are never going to do the numbers that a bank location does," said Steve Kirk, general manager of Rhino Systems. "We want to give everybody out there a chance to provide this service in their store at a minimal cost."
Rhino's Mini Rhino 1000, a floor-mount model, wholesales for about $4,000. Kirk plans to launch five more models by the end of the third quarter, including countertop and wall-mounts. Rhino's countertop version will go for below $3,000, which is seen as a benchmark for the "how low can they go?" crowd.
The Salt Lake City-based company's first machine dates back to 1991, when it was part of Automated Transaction Systems. "That's before the Triton 9500 was released," Kirk said. "That's why we're not a Triton clone -- never have been and never will be."
Hansup Kwon, president of Cross International Technologies, said his Sunnyvale, Calif. company is carving out a new niche at the bottom of the existing low-end market. "We're not taking market share from someone else, rather we are creating a new market."
Modeled after the more robust Mini Bank 2000 series but with fewer features, the new Mini Bank 1000 will be priced at about $5,000. With machines like his own Mini Bank 2000 or Triton's 9600, Kwon estimates merchants need 300 to 400 transactions a month to break even. "That is a bit too much for the very small, mom-and-pop store," he said.
Retailers can lease the Mini Bank 1000 from Cross distributors for about $119 a month, which includes maintenance and service. Factoring in fixed fees like a phone line and assuming a surcharge of $1.50, it's possible to break even with as few as 130 transactions a month, Kwon estimated.
Because all of the machine's modules are produced by Hyosung Computer, Cross' parent company, components typically cost 5 percent to 10 percent less than those found on similar machines.
While the Mini Bank 1000 has not been officially released, Cross has already shipped 200 units. Kwon has high hopes for the product. "It's like a bomb. You don't know how it's going to explode," he said. "It could be a huge success in terms of volume. I think we're creating a very exciting market by making it more affordable for the small stores."
The Sacramento, Calif.-based Universal ATM Network's Moneytel DV ranges from $3,000 for a countertop model to about $6,000 for a machine equipped with a phone card dispenser and audiovisual advertising module.
Because Universal deploys its own machines and works mostly with small to mid-size ISOs, President Joseph Vu said his company designs machines with the needs of that audience in mind. It's difficult for a small manufacturer like Universal to market to large ISOs, who often sign long term contracts with larger companies.
Greenlink Technologies offers several ATMs, priced from $3,000 to $5,000. The top-of-the-line T1000 features a front-loading De La Rue dispenser that holds up to 2000 notes. The U1000 and C1000 models have smaller, rear-loading Uninote dispensers.
Hurst, Texas-based Greenlink plans to introduce a PC-based machine this year at a slightly higher price point, between $4,500 to $5,500. Lyle Elias, president of Greenlink, said high-tech machines are moving lower in price as the cost of technology continues to drop.
"We're starting to see the high end of the market coming down," he said. "I don't think we'll see $10,000 PC-based systems much longer. After all, you can buy a PC now for $500."
Hand me that wrench
Manufacturers of ultra low-cost machines want to eliminate expensive service contracts. They're aiming to make their products so simple that owners will be able to tackle some of the service and maintenance themselves. The buzz words are "modular," "plug and play" and "serviceability."
"Our modular design is easily supported by the merchant. It's a plug and play solution, if you will," said Lipman USA's Mansdorf. "The merchant can do almost everything himself."
Greenlink produces components that are interchangeable on different models of their machine. "In our world, we have essentially one system. We're interchangeable right down to the cabinets," Elias said.
Noting that software is TBS First's core business, Scaglione said support for the 8000 is less complicated because of his company's non- proprietary hardware.
"I like to compare an ATM to a computer. I don't want to build an Intel chip. I want to go buy an Intel chip to run my computer faster," he said. "I don't want to develop a proprietary platform to run the hardware. I want to run the hardware to its optimum with the best components available."
Scaglione said TBS is the only small manufacturer with an in-house service organization. He likened TBS' service philosophy to that of NCR. "We think we're the only low-cost company that provides that same credibility and level of service. In that way, we aspire to be like our partner."
The Cross Mini Bank 1000 has just five main modules, any of which can be replaced in minutes. Cross eliminated some parts and automated others to make tasks like replenishing cash and loading paper into the printer easier on an owner.
"You don't need special tools or sophisticated education. The average Joe Smith can service this one," said Kwon. "It's about time the ATM is seen as a simple machine."
Noting that "service can be the difference between somebody breaking even or not even coming close to it," Kirk, of Rhino Systems, said his technicians can help diagnose a problem, but usually don't have to. "Anybody that can turn a screwdriver can fix our machine."
A second look
Some of the least expensive machines don't look like a traditional ATM. That's because they're based around a POS terminal, typically a Verifone 490, rather than a PC. The key difference: POS-based dispensers can't be upgraded with features like a touch screen, color screen or faster processor.
"The line between POS and ATM is getting really fuzzy," said Greenlink's Elias. "Some manufacturers are buying off-the-shelf products and developing applications for them. They're marketing them as ATMs, but they're really POS cash dispensers."
Some manufacturers, like Rhino, consider aesthetics when designing their POS-based products. "Everything looks very clean and integrated on our machine. There's nothing stuck on the outside of them," Kirk said. "Besides the price, I think that's why we're selling so many."
Size matters
Ultra low-end machines are tiny by ATM standards. Floor models are less than five feet tall and weigh well under 300 pounds. They're rarely more than 15 inches wide and 20 inches deep.
Vu, of Universal ATM, said size matters at locations like kiosk gas stations. Many of those retailers opt for counter models like his Moneytel CD, released earlier this month. "They don't have a lot of room. They might have one rack of chips and one rack of sodas, and that's it."
Rhino's machine is just 51 1/2 inches tall without a topper and has a 14 by-14 footprint. "Retailers count their merchandising space by the square inch these days, not the square foot," Kirk said.
Standard issue
Thermal printers, monochrome LCD screens, swipe card readers, single cassettes and pin pads are standard features on most sub-$5,000 machines. Kwon, of Cross, said his Mini Bank 1000 offers fuller-function features, including remote monitoring capability and a touch screen.
Many manufacturers equip their machines to distribute phone cards or coupons, two products of interest to the small retailer.
"Phone cards have become a huge business," said Lipman's Mansdorf. "Is that our business? No it's not. Does it help close the deal? Yes."
A few companies, such as Cross and TBS First, offer business hours UL 291 ratings. Greenlink's Elias, for one, doesn't see those security ratings as an important feature.
"Business hours UL ratings do not afford any real protection against theft. Industry insiders know that all the non-Level 1 vaults can be broken into in less than five minutes with the right tools," he explained.
Rhino's Kirk insists most small retailers -- and their customers -- just want the basics. "The customer's there to use the machine to get money, and the owner hopes some of it is spent in his store. That's what we're trying to allow and accomplish at a minimal cost."
Kirk compared owning an ATM to owning a car. "How many of those options am I really going to use, and how much is it going to cost me to maintain them?"
Screen test
One thing most ultra low-end machine can't do is on-screen advertising. Outfitting machines with larger color screens and the memory and processing power necessary to download graphics would drive up the price. Small manufacturers believe their clients like coupons but have little use for other forms of advertising.
"On-screen advertising is great for a Walgreen's or a Wal-Mart, but not for the doughnut shop on the corner," said Lipman's Mansdorf.
Universal ATM addresses the advertising question with an audiovisual module. The module utilizes a relatively low-tech TV/VCR that is triggered by a proximity sensor. Retailers can adjust the module so a sales pitch begins when a customer passes anywhere from five to 150 feet of the machine.
If enabled, Kwon said the Cross Mini Bank 1000 can display up to four on-screen advertising messages while it is in service mode. Like the Mini Bank 1000, Greenlink machines are not based around a POS terminal and so can be equipped to display on-screen messages.
Scaglione, of TBS First, believes on-screen advertising is nothing more than a distraction for most ATM users, who just want to get their cash quickly and efficiently. "What we've found is, it annoys them," he said.
He added, "We'll continue to plod ahead on our software and service, and let everyone else plod through the functionality and features. And we'll see who gets the mass distribution at the end of the day."
For more information:
Cross International Technologies
888-340-2484
Greenlink Technologies
800-920-8502
Lipman USA
800-454-7626
TBS First
813-884-3327
Rhino Systems: 801-265-9394
TASQ Technology: 800-827-8297
Universal ATM Network
916-487-9800
Included In This Story
Triton Systems
Triton FI based products • NO Windows 10™ Upgrade • Secured locked down system that is virus/malware resistant • Flexible configurations - Drive-up and Walk-up • Triton's high security standards • NFC, anti-skim card reader, IP camera and level 1 vaults are all options • Triton Connect monitoring • Lower cost
Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
