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Access to Money steps up growth plans

The retail ATM industry's emphasis on growth at any expense has created new opportunities for stable companies with a long-term outlook, and Access to Money wants to capitalize on them.

January 25, 2004

Much of the retail ATM business' growth over the past few years has been about price and portfolios -- selling machines at the lowest cost and acquiring other companies.

However, at least one industry veteran believes that service has suffered in the intensely competitive environment.

"Customers have gotten burned by the guys selling ATMs out of the trunks of their cars," said Doug Falcone, the chief executive of Access to Money, an ISO headquartered in Whippany, N.J.

This emphasis on growth at any expense has created new opportunities for stable companies with more of a long-term outlook, Falcone said. But the survivors will need to get more creative to stay alive.

"In this market, you have to be in every aspect of the business -- wholesale, retail, Internet, acquisitions, you name it," said Falcone, whose company manages some 3,600 machines.

Falcone founded Access to Money in 1995 after a decade in the restaurant and catering businesses. He charted a slow expansion for several years, opening sales offices in Omaha, Neb., and Gulfport, Miss., but adopted a more aggressive approach in 2003.

Last August he acquired a portfolio of 750 ATMs in the Carolinas and Virginia from Automatic Bankcard Services. (See related story Access to Money purchases ATM portfolio) He also retooled his staff, adding new national sales manager Ralph Depp in New Jersey and enlisting Noah Wieder and Wayne Gray, two veterans of the now defunct XtraCash ATM, to lead Access to Money's expansion efforts in the West.

Falcone said the three men had formed a sort of mutual admiration society through their connections as longtime Triton resellers. Relationship building has been important to Falcone, who has worked exclusively with Triton for five years, and with the same leasing company, Lease Consultants, for six years.

"I like to form true partnerships," he said. "This industry is too small. If you treat somebody the wrong way, chances are it's going to come full circle and you'll find yourself back at their door some time."

More marketing

"At this stage of the game, the leaders are starting to emerge from the pack," said Wieder, who is heading up marketing efforts for Access to Money. "This company is truly a sleeping giant. Merchants love 'em. Distributors love 'em. My job is to help them grow nationally and get to where they need to be."

Already, Wieder has redesigned Access to Money's Web site, making it more user friendly for both potential ATM buyers and for the company's distributors.

"We want to make it easier for our dealers to get all of the information they need," Falcone said. "They can download paperwork before they visit a potential customer, and we don't have to Fed Ex the stuff out to them. Everybody's happier that way."

Wieder believes Access to Money's ability to fund ATM deals through Lease Consultants will be a key to the company's future success. Many ISOs have struggled to maintain long-term relationships with leasing companies, he said.

A number of companies, including prominent players like Advanta Corporation and Newcourt Financial, stopped writing leases for ATMs in the wake of the Credit Card Center scandal. Others exited the ATM arena as costs of hardware fell.

"For dealers, it's hard to make a business if you send in four deals and only one gets approved," Wieder said, adding that many ISOs have scaled back recruitment of new distributors because of a relative lack of reliable leasing sources.

Wieder said Access to Money's emphasis on service is another strength. "Doug's got well-trained people; they carry parts, and they get it right the first time."

The company, which is a member of the TASC (Triton Authorized Service Contractor) program, services a large number of its own machines. His participation in Triton's service advisory board also has helped him recruit qualified third-party service companies, Falcone said. "I've kept score on who does a good job and who doesn't."

Shopping around

In addition to stepping up efforts to attract new distributors, an area headed by Gray, Falcone said Access to Money hopes to acquire three more mid-sized ATM portfolios (500 to 750 machines) this year.

"The funding is in place, so I'll be out there banging on doors," said Falcone, who is more comfortable making acquisitions following the successful integration of the Automatic Bankcard portfolio.

"As much as you think you know the ATM business, there's a learning curve," he said, noting that nonetheless Access to Money converted the 750 Automatic Bankcard machines, 250 of them cash managed, in just 45 days.

Like some other ISOs, Access to Money intends to target the financial institution market. The company is one of two dozen VARs selected by Triton to sell its new FT5000 and RL5000 models, Falcone said.

"I think now that Triton has been around and proved itself in the marketplace, there's a real opportunity for them with financial institutions," he said.

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