Wincor Nixdorf introduces a cash-recycling teller to the U.S. market

Wincor Nixdorf Inc. Thursday announced that it is rolling out a teller cash recycling machine in the United States as the first step toward introducing cash recycling ATMs here, a market where they are nonexistent.

The C6030 automates cash management and shortens the cash logistics chain. The device employs cash-holding cassettes. Wincor Nixdorf planted memory chips inside the cassettes, which provide data on the amount of the cash, where and when the cassettes were last opened.

"This means that banknotes that are deposited at the counter in a bank branch and stored in intelligent cassettes in an automated safe can be made available again for dispensing on automated teller machines," company officials said in a statement. The CINEO C6030 holds up to three cash recycling cassettes, which can either deposit or withdraw up to 200 banknotes per bundle.

In addition to reducing cash-handling costs, teller cash recycling machines enhance banks' physical safety by housing funds in a centrally located automated safe, eliminating cash's exposure, says Bob Meara, senior analyst for Celent LLC, a Boston-based research firm. The tellers also replace manual cash counting, automating the process.

The cash-recycling market, however, is a crowded field with eight major competitors, including ArcaTech Systems, Burroughs Payment Systems, Diebold Inc., NCR Corp., Glory Ltd. and Hitachi Data Systems Cash Management Solutions. Talaris Ltd., which is based in the United Kingdom, is the best known company in this field, Meara says.

A Bank of America executive who attended Wincor Nixdorf's conference said he liked what he saw. "The cash-recycling teller eliminates a lot of waste," said the executive who spoke on condition his name was not used. Bank of America, owner of the nation's largest bank-owned ATM network, also is testing Wincor Nixdorf ATMs in its laboratory, the executive said.

The CINEO C6030 will open the door to the CINEO line of ATM cash-recycling machines in the U.S., said David Hadesty, vice president of strategic alliances and product management.

"The market for recycling ATMs, except for maybe a few laboratory tests, does not exist in the U.S., but with the CINEO C6030, the Wincor Nixdorf is kicking the tires," Meara said. Wincor Nixdorf tested recycling ATMs either in 2007 or 2008 with an Atlanta-based bank, Walsh said. He declined to name the financial institution. He did not discuss test results.

Cash recycling ATMs accept cash in, count it and discard damaged banknotes. The banknotes that are kept are distributed to cardholders. Cash recycling ATMs, popular in Asia and parts of Europe, reduce, but do not totally eliminate armored-car costs, which can be expensive. Cash recycling ATMs work best when the amount of funds deposited and withdrawn are equal, said Ramesh Arunashalam, Wincor Nixdorf's senior product manager for deposit automation.

The CINEO C6030 and CINEO cash-recycling ATM are designed to work in tandem. A CINEO cassette, holding an overflow amount of banknotes can be inserted into the CINEO cash-recycling ATM, Arunashalam added.

Wincor Nixdorf executives believe this is a good time to introduce cash recycling ATMs because the cost of cash-in-transit is expected to increase from its current low price.

"When cash-in-transit is not expensive, banks fill their ATMs with cash. When cash-in-transit is expensive, banks reduce the amount of cash they deposit in ATMs," Walsh said. "Cash-in-transit is at a low price now, but it has to go up."

Next year, Wincor Nixdorf AG will expand CINEO's product line.