News
U.S. ATM shipments increase -- a little -- in 2002
While ATM manufacturers apparently can forget the days of double-digit sales growth in the U.S., there is still room for optimism. The annual survey of U.S. ATM shipments conducted by ATM&Debit News showed a slight increase in sales for 2002, driven at least somewhat by deployers' demands for new functionality.
March 24, 2003
Reprinted with permission from ATM&Debit News, a weekly electronic newsletter based in Chicago. To subscribe, call 212-631-9780 or go to thisWeb site.
Dayton, Ohio-based ATM manufacturer NCR Corp. recently lauded the shipment of its 500,000th ATM worldwide. But it may be tougher for NCR to reach the million mark, as the years of double-digit sales growth in the U.S., the world's largest ATM market, are all but gone.
But emerging functions and services, new regulations and technological advances appear to have helped to slightly increase sales in 2002. Manufacturers last year shipped 50,954 ATMs in the U.S., up 3.5 percent from 49,241 in 2001, when shipments declined by 17 percent from the previous year's total, the results of ATM&Debit News' annual U.S. ATM shipment survey show.
Shipments for North Canton, Ohio-based Diebold Inc., the leading U.S. ATM maker, declined 5.8 percent, based on company financial reports and analyst interviews. While Diebold would not provide U.S. shipment data, ATM&Debit News estimates that Diebold shipped 13,560 ATMs in 2002, down from 14,400 in 2001.
2002 U.S. ATM shipments Diebold:13,560 ATMs (estimated) Down 5.8 percent from 14,400 (also estimated) in 2001 Triton: 9,867 Up 2.6 percent from 9,621 in 2001 NCR: 8,900 (estimated) Up 1.1 percent from 8,800 (also estimated) in 2001Tranax: 7,600 Up 0.4 pecent from 7,572 in 2001 Tidel: 3,117 Up 13.9 percent from 3,621 in 2001 NexTran: 2,947 Up 489.4 percent from 500 in 2001 Wincor Nixdorf: 2,200 Up 9.6 percent from 2,007 in 2001 Fujitsu: 1,007 Down 1.3 percent from 1,020 Lipman: 1,000 (estimated) 0 percent change from 1,000 (also estimated) in 2001 GTI (Greenlink): 756 Up 8 percent from 700 in 2001 Total: 50,954 Up 3.5 percent from 49,241 in 2001Source: ATM&Debit News |
Also based on financial reports and analyst interviews, NCR experienced a 1 percent gain in shipments. It experienced a 13.4 percent decline in shipments in 2001, according to ATM&Debit News numbers from last year's survey.
Slow U.S. ATM sales have affected both bank ATM manufacturers, such as Diebold and NCR, and such producers of off-premise cash dispensers as Long Beach, Miss.-based Triton Systems and Fremont, Calif.-based Tranax Inc.
Triton last year shipped 9,867 ATMs, up 2.6 percent from 9,621 in 2001. Tranax shipped 7,600 ATMs in 2002, virtually the same number it shipped in 2001.
New services ahead
Most ATM buyers or resellers, which primarily are banks and independent sales organizations, say the industry is demanding more service-oriented products that can be mixed and matched on existing and new machines, regardless of make or model.
"The total sales may be down from what they once were," says Leon Majors, president of Salisbury, Md.-based ESP Consulting Inc., which conducts marketing surveys for ATM ISOs and financial institutions. "But I am seeing more optimism on 2002 and 2003 than in 2001."
Majors believes a major ATM turnover will occur in a year or two, as off-premise deployers increasingly offer such value-added services as dispensing cellular telephone time, check cashing and bill payment to capture unbanked customers.
At the other end of the spectrum, banks are expected to replace thousands of ATMs to offer their own customers such new conveniences as bill payment and check imaging through ATM deposits. And both groups are expected to replace ATMs to comply with new Triple Data Encryption Standard transaction protocols, Majors predicts.
Time to upgrade
NCR Vice President Bob Tramontano agrees. But he says it was too early last year to reap the benefits of such technological upgrades. Many banks held back on purchasing ATMs because they are unsure of ATM networks' technical requirements for Triple DES, Tramontano says, adding that deadlines to meet the new standards are closing in. "We see it ramping up this year," he says.
Mike Tharp, Diebold senior marketing manager, agrees that many financial institutions will be considering big replacement packages to comply with Triple DES and to enable customers to conduct more banking services. "We had a mix of people deciding to upgrade or going ahead with replacements because of Triple DES," he says.
However, there are increasing demands to offer with the machines low-cost software solutions so operators may set up new services in multivendor environments, Tharp notes. Diebold recently began promoting its Agilis multivendor software, while NCR offers its APTRA multivendor software.
As imaging hardware and software become more economical, Tharp and Tramontano believe there could be a big future in check imaging at ATMs. Chicago-based Bank One Corp., for example, earlier this year started a 10-ATM pilot using check imaging on NCR ATMs.
Getting ahead of the other guy
ATM makers once could count on off-premise ATMs to drive sales, as thousands of merchants bought machines for the first time. But those times are mostly gone. And, as with bank ATMs, makers of off-premise machines are seeking to market to ISOs that already have ATM clients.
"Whatever you gain is at the expense of someone else," says Paul Kim, a vice president of Tranax, which distributes cash dispensers made by Hyosung Computer, a South Korean manufacturer.
Indeed, New York-based NexTran Inc., a subsidiary of Chungho ComNet Co. Ltd., also based in South Korea, is targeting existing users of Tranax ATMs. Many NexTran sales last year went through distributor ATM America, which used to be a top Tranax distributor, says Eric Park, Nextran president.
Hundreds of NexTran ATMs are in mom-and-pop convenience stores owned by Korean Americans in New York City. The Money Marketing Inc. ISO, a NexTran sister company, deployed the ATMs.
Another example of brand replacement involves Germany-based Wincor Nixdorf Inc. Wincor supplied a major contract with Menlo Park, Calif.-based E*Trade Group Inc. for 1,000 ATMs deployed in Target stores.
E*Trade several years ago bought the Card Capture Services ISO, at the time the nation's largest ATM ISO. Card Capture used Triton ATMs almost exclusively. Triton machines, however, are in new locations, such as Chevron Oil Co. gas stations and AMF bowling alleys, that once had deployed other vendors' brands, says Triton President Brian Kett.
As ATMs become dated, even in the relatively new off-premise market, old partnerships often die, notes Saul Caprio, Wincor's U.S. marketing chief. "Nobody wants the old stuff," he says.
Included In This Story
Hyosung Americas
Hyosung Americas is a global human experience maker that bridges the physical and virtual worlds. We do this by harnessing our unique combination of a manufacturer’s soul with an innovator’s mindset to build a platform of integrated products, services, and ideas that improve life’s day-to-day interactions for everyone.
Triton Systems
Triton FI based products • NO Windows 10™ Upgrade • Secured locked down system that is virus/malware resistant • Flexible configurations - Drive-up and Walk-up • Triton's high security standards • NFC, anti-skim card reader, IP camera and level 1 vaults are all options • Triton Connect monitoring • Lower cost
Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
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