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ATMIA, Tremont publish new overview of US ATM industry

June 23, 2014

The ATM Industry Association and Tremont Capital Group have jointly released the "U.S. ATM Industry Overview," an updated version of the ATM deployer white paper first published in 2010.

The comprehensive report begins with a historical review of the ATM industry over nearly five decades. From there the report goes on to examine the revenue and expense aspects of various ATM business models.

The report reveals that ATM deployers have invested an estimated $5.5 billion in their fleets over the past decade and operational costs require several billion dollars more in expenditures every year. None of this includes costs for Windows 7 and EMV migrations.

The report also highlights some notable changes of the last four years:

• turnkey placements by independent ATM deployers have grown by 10 percent;
• aggregate net interchange income for domestic IADs has declined more than 25 percent;
• total expense as a percentage of transaction revenue has increased for all business models; and
• regional density of ATMs has shifted slightly, with movement from the Northeast and West to the Midwest and South.

"Tremont's new research confirms that ATM deployment business models are under pressure from increased costs," said ATMIA U.S. executive director, David Tente. Still, he said, the industry is doing "a great job" providing consumers with ever more convenient access to cash.

Sam Ditzion, Tremont CEO and author of the report, said the industry has proven its durability in the years since the last report.

"While the U.S. ATM industry has faced many headwinds in recent years, it remains resilient and continues to serve an absolutely essential role in the U.S. economy in regards to cash accessibility," he said.

The "U.S. ATM Industry Overview" is available for free download by ATMIA members, and is available for purchase by non-members.

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ATM Industry Association (ATMIA)

The ATM Industry Association, founded in 1997, is a global non-profit trade association with over 10,500 members in 65 countries. The membership base covers the full range of this worldwide industry comprising over 2.2 million installed ATMs.

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