- January 2020
- September 2019
Success of an ATM Business Draws Heavily On Location
By MOBILEMONEY Inc | September 03, 2019
Location, Location, Location
One of the Most Important Factors to the Success of an ATM Business
According to the recent survey, the US has nearly 425,000 ATMs, and not all are bank-owned. Majority of the ATM business owners are not associated with the banks. That means ATMs are a crucial addition for profitable businesses with negligible overhead expenses. Companies don’t need staff, rental space, or storefront to get into the market. One of the best aspects of owning an ATM business is its low startup cost and hassle-free business management.
Among all these positive aspects of owning a Portable Cash Machine business, the one that is often overlooked is a location. Although ATM Machines have some prime spots that help companies drive customers, a lot of Automated Teller Machine owners do not consider it as an essential component that can bring high traffic. ATMs are set up to provide accessible transaction services to the customers.
When customers attend concerts, festivals, etc. they usually like to rely on cash. If they run out of credit or forget to bring their credit card with them, the next thing they look for is their ATM card.
The location of the ATM Machine is one of the critical factors businesses have to consider when setting up an Automated Teller Machine business. MOBILEMONEY, in this regard, not only helps people setting up ATMs in targeted venues but also guides them about the important location for running ATMs business.
For a business planning to get into ATM business, here are certain things pertaining to the location that needs consideration. But before plunging into that discussion, let’s understand the importance of location for the success of your ATM business.
Why Is Location Important to Consider?
ATMs are typically set-up in the areas with high-footfall such as residential complexes, commercial areas, important junctions, bus stands, and shopping malls. The banks and financial institutions choose strategic locations predominantly to not only make their brands visible but also increase revenues. ATMs that are located next to any liquor shop, eatery, or meat market usually have high footfall to help customers take benefit from instant availability of cash.
Location is also essential when it is about attracting competition. Setting up an ATM in a place that already has many ATMs in the same vicinity is called clustering. It will likely improve the number of transactions as customers prefer to shop in the area where they can find multiple ATMs in one place. If one ATM doesn’t work, the customer has an option to go in another one.
How to Choose Location to Start An ATM Business
As mentioned earlier, banks often consider prime locations to place ATMs. However, it is always better to think different when it is about choosing the right site for ATM set-up.
- Business can target places like shopping areas, sports venues, parks, or fairgrounds. Not only do these places often have high traffic, but they do not accept debit or credit cards usually.
- Research on location before placing an ATM is crucial. The most important considerations should the number of ATMs and foot traffic before choosing that location.
- If a business is planning to place an ATM near a store, or specific venue, the owner should be convinced beforehand.
- A business plan is important, and it must include the aspect of ATM’s location. It is essential to plan how much the business will invest in an ATM machine. MOBILEMONEY can be a massive help in ATM placement regardless of the location.
- Considering the safety of the customer is also vital when choosing a location. Depending on the location of the ATM, the business should select an ATM company that helps guard cash services.
All in all, the location of an ATM device is a crucial component in ATM businesses and can turn them into successful ventures if chosen carefully.