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Who's Who: Bob Cannon

Bob Cannon's a man who's not afraid to try new things. That philosophy helped his Momentum Cash Systems join the ATM gold rush in the 1990s, and helps keep the ISO running strong today.

February 24, 2002

Bob Cannon can't say that's he's a jack of all trades, but the 48-year-old president and CEO of Momentum Cash Systems Inc. has mastered a few in his business career. He's built Momentum into one of the country's largest ISOs, with more than 3,000 ATMs and $20 million in annual revenue.

Bob Cannon

Cannon began his professional life as an accountant, working in the tax department of a CPA firm for two years while studying for a masters degree in accounting at the University of Houston.

By the late 1980s, Cannon got wind of the coming revolution in ATMs, and put himself in a position to prosper from it by starting Momentum Cash Systems in 1994. That was the same year Tidel Technologies released its first off-premise machine, the Anycard ATM. Momentum became one of its first distributors.

"Bob has been labeled the grandfather of the ATM industry, not because he is one of the oldest or one of the pioneers, but in my opinion because of the wisdom he brings to each and every situation," said Jim Stein, Momentum's chief operating officer. "Bob has the personal traits and attributes which would make him successful in any industry. I have only known Bob for five years, but everyone he grew up with has always said Bob has been successful at everything he has done."

Chief Financial Officer Ann Lyle agrees: "Bob could make a success out of any type of business due to his in-depth insight of business -- what it takes to build a company, keep a company stable and keep a company growing. He could apply these skills to any product."

All accounted for

It didn't take long for Cannon's innate entrepreneurial zeal to find an outlet. After finishing work on a business administration degree from Texas Tech in 1976, he explored several business opportunities, including speculation in the oil industry. The native Texan bought and sold three oil-related businesses.

"The oil business and the economy in general in Texas in the mid-'80s was lousy," Cannon said. "Being a CPA isn't my aspiration for a lifelong career, but it's something good to fall back on. There's always accounting to do; that never goes away. And I had to do something."

That something seemed to be accounting. He started his own firm, R.B. Cannon and Associates, and seemed settled. However, when a close friend told him about Texas-based ATM manufacturer Tidel, he wanted to know more. 

"When Tidel came out with the off-premise ATM in 1994, we decided to open Momentum Cash Systems," Cannon said. "We knew nothing about the business except that it sounded interesting. After a couple of years, I sold my CPA practice and came over to run the company full-time."

Right place, right time, right business

Cannon's timing was right. Like a lot of folks who got into the ATM business in the mid-'90s, he found a surging demand for ATMs in convenience stores, gas stations and hundreds of other retail outlets. And when surcharging took off in 1996, it created a business case for even more retail locations.

"We were lucky to get in on the ground floor level," Cannon said. "It allowed us to get out into the marketplace and get a good foothold before the competition became too stiff. It's been prosperous."

Another venture, nothing gained

Running a successful ISO, of course, wasn't enough for the ambitious Cannon. In 1999, Momentum Cash applied for a bank charter to launch an Internet bank. It was an endeavor that seemed promising, and Cannon devised a plan to set it in motion. However, as the stock market began to sink, so did the momentum for Cannon's new venture.

Much like the oil business in the '80s, the economic climate was the Internet bank plan's ultimate undoing. But, just as he had done before, the ever-savvy Cannon took it all in stride.

"Considering 90 percent-plus of the Internet banks have been closed or merged, I think withdrawing our charter was a very good thing," he said with an almost audible wink. "But we always keep eyes and ears open for opportunities. I always felt the ATM network has higher values than merely what you collect fees for."

Momentum has expanded recently to new markets, including Phoenix, Denver and Tampa. It has also gradually expanded its services to include processing, implementation and full program and manufacturer support.

The road ahead

Cannon believes a return to ISO-owned machines is on the horizon in the ATM world. He said merchants with high-volume locations are learning how difficult it is to finance ATMs, and ISOs like Momentum provide an alternative that doesn't tie up their cash. Momentum, which provides the ATM and services the machine, owns nearly a third of the 3,000 or so ATMs it manages.

"I think placement of machines is coming back into fashion," Cannon said. "I've been seeing the signs. I've believed in that concept for many years. For the merchant it's a very good situation, and it's been a good thing for us."