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Seven Bank blames underperforming 7-Eleven ATM network for lost revenue

September 11, 2018

Japan-based Seven Bank will record 14.6 billion yen ($131 million) in write-downs related to its ATM network at 7-Eleven convenience stores in the United States.

Lower-than-expected traffic at the U.S. ATMs forced the bank to cut its full-year earnings forecast by more than half, from 26.8 billion yen to 12.8 billion yen, according to a report by Nikkei Asian Review.

Seven Bank installed ATMs at approximately 8,000 7-Eleven locations after ending a long-term relationship with Cardtronics in mid-2017. The ATM business was transferred to FCTI, a Los Angeles-based IAD purchased by Seven Bank in Q4 of 2012.

According to the Nikkei report, the machines have failed to draw the expected traffic, reaching approximately 70 percent of what the bank had forecast. The bank blames lack of consumer awareness for the underperformance of the network.

The bank also operates a network of 24,000 machines in 7-Eleven stores and other locations across Japan, where cash remains the most popular form of payment, the report said.