News

UK's Cardpoint gets another service station contract

March 10, 2004

LONDON - ATM provider Cardpoint plc is extending its motorway service presence through an exclusive contract with RoadChef.

According to a news release, the contract will add 50 more ATMs to Cardpoint's estate of 2,070 machines.

Cardpoint already operates 21 machines for RoadChef on a non-exclusive basis, some of which were inherited through the acquisition of Securicor's cash machine business in June 2003.

Under the new contract, existing ATMs will be upgraded to more robust terminals supplied by Wincor Nixdorf, and Cardpoint will install internal through-the-wall machines replacing existing bank-operated ATMs.

All ATMs in service stations will be upgraded to ISDN to provide a higher availability and reduce the transaction time, according to the release. The new ATMs will be branded with Cardpoint's distinctive orange color and provided with full signage and marketing support.

RoadChef is one of the three leading Motorway Service Area operators in the UK and commands 24 percent of the UK motorway service area market, according to the release.

Tom Flanagan, RoadChef's company secretary, said, "Cash machine services have become an integral part of our service offering to customers, and they expect to have access to their cash in a well-lit and secure environment. For this reason, where possible, all our external ATMs will be moved in-doors and Cardpoint will provide external signage and marketing materials."

Nigel Mills, Cardpoint's sales director, said, "Cash machines located at Motorway service areas are among the most profitable in the ATM industry because there is a higher demand for cash when customers are traveling. Cardpoint is now the dominant player in the supply of ATMs to motorway service areas, having also recently been awarded the exclusive Welcome Break contract."

(See related story UK's Cardpoint renews ATM contract with service station chain)

According to the release, Cardpoint expects the contract to contribute a minimum estimated turnover of £10 million (U.S. $18 million) over five years.