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.
“Tremont’s new research confirms that ATM deployment business models are under pressure from increased costs,” states ATMIA U.S. Executive Director, David Tente. “But despite those pressures, the industry is doing a great job of providing consumers with even greater convenience in accessing their cash.”
“While the U.S. ATM industry has faced many headwinds in recent years, it remains resilient and continues to serve an absolutely essential role in the U.S. economy in regards to cash accessibility,” says Sam Ditzion, CEO of Tremont Capital Group and author of the report.
