At the moment, the ATM industry is looking into several sources of incremental income that look like they could add up to real money. The two incremental income sources currently garnering the most attention are direct currency conversion and lottery ticket sales.
Introduced several years ago at an ATMIA conference, the lottery ticket sales idea is finally gaining market traction and acceptance by state gaming authorities. It’s ideal for ATMs in locations that don't currently sell lottery tickets, but have ample foot traffic to justify an ATM that offers this service.
Dynamic currency conversion is a good option for regions frequented by international travelers. It allows the ATM user to select the currency exchange rate applied when they withdraw cash.
If they have a choice, consumers will seek out these terminals, which minimize their cost for funds. DCC has proven successful in several countries and it will drive business to ATM terminals supporting this application. Conference attendees also discussed cross-channel opportunities between ATMs and other channels, particularly in regard to mobile banking and mobility in general.
This comes at an important time for FIs in particular, as reductions in revenues and profitability have strained resources for FIs of all sizes. Consequently, many FIs are in the process of reducing the number of branches in their networks.
Of course, EMV was discussed at length during the conference, in terms of timeframes for liability shifts by MasterCard and Visa, and also in regard to expectations as the U.S. moves toward EMV at ATMs and POS devices. There is still much to be discussed, planned, and implemented over the next few months and years.
Also discussed was the possibility of expansion and extension of ATMs into such areas as targeted advertising, one-on-one marketing, prepaid cards, and integration with other channels and devices. It’s an exciting time in the industry, and to be among those looking for new innovations to add consumer value to the ATM.
