News

Ad-driven, surcharge-free ATMs take a bow in NYC

FreeATM, the company behind the concept, went live with 25 machines today and expects to expand to 55 sites in the city by year-end.

November 4, 2014

FreeATM, an advertising-driven, surcharge-free ATM network, launched its first wave of installations across New York City. The company's phase one footprint will include 25 locations across the boroughs of Manhattan, Brooklyn and Queens, according to a news release.

FreeATM Co-founder and CEO Clinton Townsend commented on the launch:

New York thrives on two things: coffee and cash. Both are the lifeblood of this city. However in communities where consumers don't have access to their bank, consumers are left with only one option — paying a fee at independently owned and operated ATMs. ... Any customer from any bank can use our free ATMs and save $1 to $3 by simply watching an advertisement from a targeted brand. We hope that our customers, in turn, spend locally within their communities, strengthening our great city.

The FreeATM software platform facilitates seamless media planning, content management and distribution to ATM digital screens and toppers, the company said. The program allows brands and their agencies to target and engage specific consumer audiences based on geographic location, venue type, day part, demographic, and socioeconomic status. Toppers also will display national and local news through a partnership with news outlet Metro.us, which will deliver content daily.

For the initial launch, FreeATM has secured partnerships with three of the tri-state area's largest ATM operators, each with an installed base of 1,000 to 3,500 machines. The IADs have integrated the FreeATM software platform in order to participate in a beta test of the software. The pilot will run on an eventual count of 250 ATMs in New York before expanding regionally to Boston, Philadelphia and Washington, D.C.

FreeATM said in the release that demand for its service is strong; the company has enrolled a total of 55 locations in New York City to date, and will have its next 30 locations up and running in December.

Funding for FreeATM was provided by a group of investors led by Ithaca, New York-based Cayuga Venture Fund. Investors include Mogility Capital, Kima Ventures, the Cornell University BR Venture Fund, TJNS Capital, and additional angel investors in private equity, asset management, and consulting.

"Cayuga Venture Fund is thrilled to back an offering that provides such unique value by disrupting the status quo," said Ken Rother, a venture partner with the fund. "FreeATM's vision provides consumers with savings and digital advertisers with a new out-home screen, all while providing ATM operators and location owners with a revenue stream backed by a service that consumers will embrace [as opposed to] current negative feelings toward high-fee ATMs."