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PC-based ATMs enter the retail race

September 2, 2004

Because of their higher price, PC-based ATMs have not been broadly adopted by retailers. But as components and features become less expensive, more owners are willing to consider them, and as a result, more machines are hitting the market.

ATM owners who are moving toward PC-based machines do so largely from a desire to add more functionality to if and when new applications - such as money ordering, check cashing and money transfers - catch on with users.

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The Bailey Group began deploying Wincor Nixdorf's ProCash Compact ATMs because of an interest in advanced functionality. "We wanted to put ourselves in a position to bring in something new without incurring huge costs when we were ready to do so," said president Beth Bailey Alexander.

Living in the present

While prices for these models drop and advanced functions are still in the future, PC ATMs can offer retailers special features right now.

The PC-based machine can be an important component of a C-store's loyalty program by becoming its promotion center. Since PC ATMs are usually equipped with larger, more color- and graphics-capable displays, they can attract customer attention through animated ads as well as sheer size.

Derek Minor, a C-store ATM user, says the PC machines are more visually appealing. He says their touchscreen functionality is a draw too.

"Using PC-based ATMs is similar to any other self-service application. I suppose I'm comfortable with (grocery) check-out and airline check-in, and have come to expect ATMs to look and work the same way now," Minor said.

PC-based machines are also easily programmable, enabling retailers to load ads that display at different times of day.

"The merchant could schedule his own ad campaign right in the store. In the morning the merchant could promote a breakfast special and, through a few simple set up steps, automatically switch to an ad mid-morning that promotes hot dog and drink specials for lunch, and in the afternoon switches to a snack special," said Anita Arguelles, marketing director for Triton, a manufacturer of PC-based ATMs.

More for the money

Industry sources predict that PC-based machines will become the norm at retailer-owned sites that generate 500 or more transactions a month because retailers can get attractive features like a larger screen for a price not much more than a higher-end "dumb" ATM.

Alexander said service calls have decreased and uptime has increased at the Bailey Group since the company began deploying PC-based products.

"The ATMs are out of service for minutes instead of hours. That translates into fewer lost transactions and more revenue," he said.

Ultimately, said Triton president Brian Kett, PC-based ATMs aren't for every retailer. If a retailer just wants to dispense cash, a PC-based ATM is a wasted investment. But if a retailer wants to use customized programs for their retail location or take advantage of larger screens and more capabilities, then the PC-based ATM is worth the higher cost.

"It's like an automobile. You can get everything you need in an Echo (Toyota's entry-level car). But not everyone is going to buy an Echo," Kett said.

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