August 2014


Hot Topics by ATMIA

Did you miss the latest news from ATMIA? Check out the following to stay informed, and become involved.

Are Cardless Transactions the Future of the ATM Industry?

ATMIA & Kahuna Release In-Depth White Paper on Future of U.S. Cardless Transactions

According to the 2014 U.S. Independent ATM Deployer Survey, 34.7 percent of ATM deployers agree and are developing a strategy for implementing contactless ATM transactions. Another 15.2 percent of those surveyed indicated they were unsure or needed more information to decide if they would offer contactless or cardless transactions.

To educate ATM deployers on the future of mobile ATM technology, ATMIA and Kahuna ATM Solutions have released a comprehensive white paper entitled: Cardless ATMs: Are Mobile Transactions the Future of the ATM Industry?With MasterCard's liability shift to EMV quickly approaching, U.S. independent ATM deployers (IADs) are focused on putting their EMV migration plans in place. However, EMV-based technology also brings opportunities for new technology such as cardless transactions, says David Tente, executive director of the U.S. ATMIA chapter.

The free white paper, available for download from the ATMIA and Kahuna websites, explores future technology considerations IADs should be thinking about offering in the new EMV-based payments society including a review of how cardless technology works, the difference between EMV-based cardless transactions and contactless transactions which use near field communication, the mobile ATM solutions on the market today, and how leading financial instructions and IADs are approaching cardless-accepting ATMs in other parts of the world.

ATMIA and Tremont Capital Group Release Updated U.S. ATM Industry Overview

The ATM Industry Association (ATMIA) and Tremont Capital Group have released the "U.S. ATM Industry Overview", an updated version of the ATM Deployer white paper first published in 2010. This comprehensive report begins with a review of the ATM industry's history over nearly five decades. And with the exception of 2006 – 2007, it's remarkably steady growth.

The report also examines both the revenue and expense aspects of various ATM business models. Even though ATM deployers have invested an estimated $5.5 billion in their fleets over the past decade, operational costs require several billion dollars more in expenditures every year. And neither of those tallies yet includes the bills for the Windows® 7 and EMV migrations, which are just ramping up this year.

Key changes since the first report include:

  • The percentage of turnkey "placements" by the independent ATM deployer (IAD) has grown by 10% in the past four years.
  • Aggregate net interchange income to the domestic IAD industry has declined more than 25%.
  • Total expense as a percentage of transaction revenue has increased for all business models.
  • Regional density of ATMs has shifted slightly over the past few years, showing movement from Northeastern and Western states to Midwestern and Southern.

The "U.S. ATM Industry Overview" is available free to all ATMIA members and can be downloaded from the ATMIA website. It is also available for purchase by non-members. For more information about ATMIA membership, contact David Tente.

ATMIA Publishes Discussion Paper for Implementing Dynamic Currency Conversion (DCC) and Foreign Exchange (FX) Dispensing at ATMs.

ATMIA published a new Discussion Paper for Implementing Dynamic Currency Conversion (DCC) and Foreign Exchange (FX) dispensing at ATMs.

ATMIA's new discussion paper explains DCC as it is experienced by the cardholder at the ATM, vital aspects for acquirers, the financial benefits of this value-added ATM service, the process of implementation, card brand costs as well as a section on foreign cash withdrawals at ATMs. It highlights the benefits of DCC and FX dispensing, enabling ATM network owners to extend services and functionality while providing, at the same time, a new income stream.

The paper can be downloaded on the ATMIA website.

ATM Industry Association Adds New Legislative Monitoring Service

The ATM Industry Association has expanded its already robust regulatory and compliance monitoring service that includes Regulation Alerts and Compliance Profiles, to encompass new legislative monitoring for 11 states. The new service, called iStateLink, reports on a broad array of relevant topics including; ADA, surcharges, signage, licensing, taxes on fees, government assistance, availability of funds, overdrafts and interchanges.

The new service, which updates the status of each monitored bill daily, is also available free to all ATMIA members and is provided in addition to the ongoing work of the group's Government Relations Committees. Non-members can go to the ATMIA website for more information about the benefits of membership.

"It's as close to real-time as possible. A service like this would cost an individual member thousands of dollars," ATMIA U.S. Executive Director David Tente said. "Our ability to deliver this critical information with economies of scale for all our members demonstrates the huge value members receive from ATMIA."

ATMIA and EFTA Release Second Research Paper on BitCoin and BitCoin ATMs

The ATM Industry Association, in association with the Electronic Funds Transfer Association, has released its second commissioned research report into the digital currency BitCoin. The intensive report, written by Value Partners Management Consulting, authors of the industry's bi-annual Global ATM Benchmarking studies, is called "BitCoin: Virtual Currency with Real Opportunities".

BitCoin, which allows people to send and receive payments within an entirely decentralized peer-to-peer network, has quickly become the most prominent form of "digital currency" in the world.

The report is free to all ATMIA and EFTA members and can be found on their respective web sites. Non-members may purchase the report. Click here to purchase the report.



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