Millions of Australian consumers were expected to withdraw from ATMs yesterday as part of Cash Out Day, an event designed to keep cash relevant in an increasingly digital world.

The movement has gained significant support across Australia and has even been credited with spur the passage of the nation’s recent cash mandate. As of the start of the year, major retailers and convenience stores are required to accept cash for most purchases under $500.

However, the Cash Out Day campaign is not resting on its laurels. Organizers hope to double the average daily volume of ATM withdrawals in a single day, sending a clear message to financial institutions that cash is still critical for many segments of the population.

For example, data from the Reserve Bank of Australia (RBA) found that about half of Australians use cash at least once per week, with older and lower-income consumers among the most frequent users. The RBA also warned that reduced access to cash could have negative consequences for roughly a third of the nation’s population.

The Cash Uptick

While the efficiency of digital payments and the widespread adoption of smartphones have led many experts to predict the decline of cash, the RBA found that around 15% of last year’s transactions were conducted using cash—a 2% increase from two years earlier.

Australia is not alone in maintaining a strong preference for cash. Countries such as Switzerland have long been cash strongholds. According to the Swiss National Bank, that trend remains intact: mobile payments declined by approximately 1% last year, while cash and debit card usage held steady.

Both Sides of the Debate

There has, however, been pushback against cash mandates in other regions. For instance, an alliance of merchants and wholesalers in the European Union has opposed a proposed law requiring businesses to accept cash. The crux of their argument is that handling cash securely imposes significant time and cost burdens on retailers.

It is worth noting that these merchants oppose a mandate—not consumers’ continued access to cash. Meanwhile, Cash Out Day organizers emphasize that they support digital payments, provided cash remains a viable alternative.

The post Australia’s Grassroots Movement Fights to Preserve Cash Access appeared first on PaymentsJournal.

As many banks have scaled back branch networks, automated teller machines have become essential pillars of the financial services infrastructure. But that autonomy has also made ATMs attractive targets for hacking, exploitation, and physical breach.

ATM “jackpotting” combines these tactics. Criminals gain access to a machine’s cabinet—often using widely available generic keys—then either inject malware into the existing system or swap the hard drive for an infected one. Once installed, the malware enables bad actors to force the machine to dispensing cash on command.

While the technique itself isn’t new, the Federal Bureau of Investigation recently warned that incidents are rising, citing more than 700 reported cases last year resulting in roughly $12 million in losses.

“The resurgence in ATM jackpotting in the U.S. just reiterates the adage: ‘Everything old is new again,’” said Tracy Goldberg, Director of Cybersecurity at Javelin Strategy & Research. “ATM jackpotting became popular back in the early 2000s when IBM retired OS/2, the operating system used by ATMs worldwide.”

“With that operating system retirement, ATMs migrated to Windows,” she said. “That opened the floodgates for attackers, as vulnerabilities in Windows OS were easily exploited, either through an attack against the network or via a physical attack that involved locally installing malware via a thumb drive. Like any connected device running common software, ATMs must be regularly scanned and software-updated.”

On All Fronts

This fraud trend adds another layer of complexity for financial institutions already contending with relentless attacks. Many schemes focus on account takeover or social engineering, pressuring customers to sending payments or act as money mules.

Jackpotting highlights a parallel and troubling shift: criminals are using advanced technology to attack banks’ systems directly. Sophisticated malware, similar in capability to tools deployed in ransomware attacks, can disrupt operations at scale.

Recent incidents illustrate the stakes. An attack on payments provider BridgePay knocked systems offline and left customers without service for weeks.

Pervasive Threats

All these technology threats are supercharging the capabilities of already-impactful fraud groups.

“This latest report does not highlight what new techniques or tactics attackers are using in their latest ATM-jackpotting sprees, but I suspect the same techniques that proved fruitful more than 20 years ago are proving fruitful today—a socially engineered attack waged against an admin with rights and privileges allows access to the ATM or the physical ATM is compromised by criminals feigning to be employees or maintenance,” Goldberg said.

“Vigilance, as always, that is based on a model of zero-trust is the best way organizations can secure their networks and all of the devices—including ATMs—connected to them,” she said.

The post FBI Warns ATM Jackpotting Fraud Attempts Are Back on the Rise appeared first on PaymentsJournal.

The ATM industry has undergone a dynamic shift that has taken automated teller machines far beyond cash dispensation. As the number of bank branches has declined, both banks and consumers expect ATMs to provide a wide array of services that were once only offered at a teller’s counter.

In response to the increased demand for ATM services, financial services company NCR recently split into two separate entities—NCR Atleos and NCR Voyix—with NCR Atleos overseeing the company’s substantial ATM ecosystem. Shortly thereafter, NCR Atleos reached an agreement with BHMI to resell the Concourse Financial Software Suite® as part of its software portfolio.

In a recent PaymentsJournal podcast, Robert Johnston, Product Marketing Director at NCR Atleos, Casey Scheer, Director of Marketing at BHMI, and Elisa Tavilla, Director of Debit at Javelin Strategy & Research, discussed the NCR Atleos/BHMI partnership and its impact on a shifting ATM landscape.

Mirroring Functionality

In addition to the services of a brick-and-mortar bank, consumers increasingly expect ATMs to mirror the functionality of the digital banking environment. Some banks have reached the point where they can replicate their entire mobile banking experience on their ATMs.

“Even as payment and banking behaviors have shifted, ATMs have stayed relevant,” Tavilla said. “About three-quarters of respondents in Javelin’s annual North American Payments Insights Survey said that ease of finding and accessing an ATM significantly affects their satisfaction with their bank.”

Meeting these rising expectations is easier said than done—it requires creating connectivity to systems beyond conventional ATM rails. For example, to give consumers access to all their accounts, the ATM must connect to a bank’s core banking system.

Platforms like Authentic from NCR Atleos can serve as the hub that connects core banking systems, other services within the bank, and even third-party services provided by companies like fintechs.

The Front-End

Authentic is part of NCR Atleos’ ATM Management Platform (AMP) which offers a cloud-based suite of ATM management modules that includes the entire software stack required to operate an ATM. This includes the customer-facing application within the ATM, as well as cash management, device management, and security management software.

A cloud-based solution, Authentic gives banks a high-performance transaction processing and payment settlement solution that’s scalable. It’s also agile, with productivity tools which allow for rapid adoption of new services and products.

“Many of the traditional companies used to embed an ATM terminal handler within their product and now they’re stepping back from that,” Johnston said. “The Authentic platform provides one that’s not just a replacement; it’s a completely new level of technology for that function. We’ve also launched a new card management system based on Authentic that gets us closer to an end-to-end processing environment.”

The Back Office

The functionality of a platform like Authentic is substantially enhanced when paired with a back office processing software solution like BHMI’s Concourse Financial Software Suite. In this model, once a transaction is authorized by a consumer, it flows into Authentic for authorization.

Once authorized, the transaction is immediately loaded into the Concourse transaction repository, along with any corresponding data from card networks like Visa and Mastercard. Concourse operates on a continuous-processing architecture, so it begins processing as soon as this data arrives in the system.

This includes automatic reconciliation of transactions from disparate data sources, the assessment of fees and commissions based on transaction data, and the creation of settlement distributions and funds movement instructions. Additionally, it manages the entire workflow for chargebacks and disputes. 

To give an example, when a customer makes a withdrawal from an ATM, the transaction is authorized by Authentic within seconds. By the time the customer walks away from the ATM, Concourse has already loaded the data from Authentic and determined the settlement impact of the transaction.

Concourse identifies which businesses are to be debited and credited, along with the amounts to be settled for each. It then determines which settlement account and distribution should be used and it creates the funds movement instructions.

“The continuous processing in Concourse is a huge advantage for financial services companies because it ensures they meet the strict service-level agreements and reporting requirements they have with their clients,” Scheer said. “It also gives companies a much-needed real-time view of their transaction data, so they can see the effects on their financial position within seconds of a transaction being authorized.”

In addition, the platform has a configurable rules engine, which gives organizations the ability to make alterations within the system without ever modifying code. That could include altering equivalency checks for reconciliation, changing a settlement distribution, adding a new fee, or modifying the workflow for managing disputes.

Three Segments

Increasingly sophisticated technology solutions in the field have had a dramatic impact on the ATM industry. NCR Atleos has evolved to address three main segments: self-service ATMs, ATM-as-a-service, and retail ATM networks.

The self-service segment includes the  ATM hardware and the range of software services that support it. While ATM hardware might mostly look the same, it is changing, with an increasing uptake of cash recycling technology. Meanwhile, the  software side has not only become more sophisticated, but it has also shifted to a subscription and SaaS (Software as a Service) model.

ATM-as-a-service is a relatively new concept, but as the demands on financial institutions have increased, more banks are adopting it. It allows them to focus on their core activities while leaving their ATM estate to be run by a trusted partner.

“Many banks have partners that run their entire ATM fleet for them, and the stability and predictability of the reoccurring revenue model suits them,” Johnston said. “They like the pace at which new updates and products can be deployed, which wasn’t possible under the traditional capital purchase and perpetual license models.”

The NCR Atleos retail ATM networks are a powerful differentiator, especially for smaller banks and credit unions. After signing up with a network, a bank that previously had a regional chain of ATMs can now have national reach.

Overcoming Processing Bottlenecks

As the ATM industry moves forward, there will be an increasing need for solutions that can deliver the experience that financial institutions and customers demand. One of the biggest issues with current technology is that many front-end authorization systems hit a processing bottleneck in the back office, because most back office systems are batch-oriented and require code revisions when changes are needed.

“That’s not the case with Authentic and Concourse. Concourse’s continuous-processing and rules-based architecture can even keep up with a high-throughput platform like Authentic,” Scheer said. “In a nutshell, combining Concourse with Authentic means that financial institutions can get an integrated, end-to-end payment processing solution.”  

The post As ATMs Do More, Financial Institutions Require Sophisticated Solutions appeared first on PaymentsJournal.

As stores move towards a more cash-free existence, some states are still requiring the acceptance of cash. According to Axios, one solution to keeping both merchants and consumers satisfied is introducing a “reverse ATM,” where consumers feed cash into a machine and get a prepaid card back for use in-store.

Reverse ATMs have already been installed in many venues, such as amusement parks, sports stadiums, and casinos. The machines need to be fast and easy to use—particularly at venues where people have a defined period of time, including movie theaters or ballgames.

While physical cards are currently being used, reverse ATMs could evolve to load a digital wallet.

Typically, reverse ATM machines don’t charge fees for converting the cash. However, some cards carry dormancy fees of around 4% if the card isn’t used for three months, and the merchant pays an interchange fee charged by Visa and Mastercard, just like other cards.

We’ve seen more businesses move away from accepting cash over the past few years, and that can be attributed to a few factors. Firstly, handling cash can be a hassle for retailers, with problems including theft and frequent trips to the bank. Secondly, the pandemic accelerated the shift towards electronic payments, as consumers became more hesitant to handle physical money due to the potential transmission of the virus. Finally, some companies are opting for cashless transactions to streamline their operations and reduce costs associated with handling cash.

But, going purely cashless won’t be the endgame for these businesses. Many consumers are considered unbanked, meaning they don’t have access to credit cards or have a bank account. And major cities, including New York, Washington D.C., San Francisco, and Philadelphia, have enforced a mandatory acceptance of cash by merchants. This policy is mainly implemented to protect consumers who don’t have access to credit or debit cards from possible negative consequences.

Because many of the most vulnerable consumers are unbanked, but have a mobile device, there is a growing movement towards digital payments that don’t require a traditional bank account or credit card. Mobile payment apps are becoming increasingly popular, allowing consumers to transfer money and make payments using their smartphones.

The post Reverse ATMs Bridge the Gap in Cashless Stores appeared first on PaymentsJournal.

As payments quickly evolve in this environment, so must ATMs. How people use cash is shifting away from transactions toward holding cash as an asset. Banks are closing branches, and streamlining staff, shifting customer service to an ATM when possible. They can be designed to deliver only cash, or only cryptocurrency, with a rich range of added functionality in between. ATMs have become a surprisingly dynamic marketplace in the COVID-19 era.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Javelin Strategy & Research’s Report:2022 ATM Market Summary: Coping in a New Cash and Digital Era

5 Top Services Used at ATMs

• 86% to get cash
• 73% to deposit cash
• 72% to deposit checks
• 67% for any other activity
• 45% to check account balances

About Report

As the COVID-19 pandemic ripples across consumer payments, the heavily cash-centric ATM is in a challenging position. Consumers’ use of cash for daily transactional purposes (purchases, person-to-person payments) is on the decline, although larger amounts are being held at home. At the same time, FIs are rationalizing and reducing their branch networks and revising branch configurations and staffing, putting ATMs in the role of supplementing cash handling in the branch. Enhanced cash-recycling ATMs are being deployed to improve the efficiency of cash management.

Simultaneously, the move to smartphone-based digital interfaces—and now the delivery of digital goods, namely cryptocurrencies—provides new opportunities for existing and new terminals. A new research report from Mercator Advisory Group titled 2022 ATM Market Summary: Coping in a New Cash and Digital Era looks at the usage related to the pandemic environment, cash usage that influence how consumers use ATMs, and trends in  the design, deployment and new capabilities.

The post 5 Top Services Used at ATMs appeared first on PaymentsJournal.

There is a common misconception that today’s bank and credit union customers want to do everything in a digital channel. The fact is that when it comes to financial services, consumers often have high expectations: in-person assistance when help is needed, plus the convenience of on-demand, self-service digital and mobile channels. How can retail banks and ATMs help meet these expectations?

ATMs play a key role in delivering this experience. Specifically, interactive ATMs that can handle most of the basic transactional work typically done in branches by tellers, such as check cashing, withdrawals with multiple denominations, account transfers, loan payments, and more.

To find out more about how ATMs play a role in a financial institution’s overall channel strategy, PaymentsJournal sat with Brendan Watkins, VP of Product Management at Fiserv, and Sarah Grotta, Director of Mercator Advisory Group’s Debit and Alternative Products Advisory Service.

Faciliating Consumer Choice

ATMs can play a key role in facilitating and offering choice to consumers, especially Millennials. Watkins noted that ATMs are a key touchpoint for Millennial consumers, and that, contrary to the popular belief that this cohort does everything digitally, physical cash still plays an important role in their lives.

“More than anything, Millennials really want choice,” he said.

Grotta agreed, noting that Mercator research shows that Millennials do use cash and go to the ATM frequently. Research also shows that they are less concerned with paying surcharges, and more interested in choice. For example, Mercator research found that 72% of Millennials say that receiving cash from an ATM in their preferred denomination is important.

“Offering that choice is a big winner,” said Watkins. “Letting them get fives instead of tens or twenties is a great pleaser and incentivizes them to go back to that ATM.

Other ATM features Millennials deem important include the ability to receive an emailed e-receipt and accessing ATMs via a smartphone, according to Mercator research.

Specifically, consumers are drawn to cash for low-value transactions. Mercator research reveals that cash is used 49% of the time for payments valued at less than $10, and for 35% of transactions of any value conducted in person.

Creating More-Efficient Branches

Interactive or “smart” ATMs also enable branches to operate more efficiently. Watkins observed that some banks and credit unions are using interactive ATMs and other advanced technology to create a sort of hub-and-spoke model of branch distribution. In this mode, there is a “hub” full-service location providing the single best opportunity to display your brand and deliver a premium consumer experience. Here, all your technology and servicing should be on full display, addressing the needs of consumers who want and need the human touch, as well as those who want significant self-serving options. Supporting the hub are the spoke locations, acting more like a café in a given area, where customers can come in and have a cup of coffee and talk about financial planning with a representative. In these smaller locations, consumers can conduct basic tasks, almost entirely manned by video ATMs and other smart technology. They don’t even require employees to handle cash; that can be done by vendors coming in to service the ATM.

Grotta added that this model can help banks and credit unions fill gaps in staffing; with interactive teller machines replacing much of the function of human tellers, financial institutions can then redeploy budget to hire in other areas.

“This is especially important because staffing and hiring is so competitive these days,” she said.

This also enables banks and credit unions to free up their staff to do more exciting and valuable work than just processing transactions, Watkins said.

“It offers a different type of employment opportunity for associates because they are less transaction-focused and more focused on building relationships with customers,” he added. “You also are able to attract a higher-quality associate. Associates are excited to do less rudimentary tasks.”

This ultimately allows banks and credit unions to operate more efficiently and effectively without drastically increasing budget. Where ATMs are connected to core account processing systems, Watkins noted some institutions are seeing a reduction in branch wait times Another example Watkins cited is creating longer hours for some branch locations. For locations that are transaction-based and mostly staffed by video tellers, banks and credit unions can deploy workers from different time zones or locations to work at different times to ensure the location is open longer than the typical nine-to-five hours.

“It gives you flexibility and the ability to create a remote workforce,” said Watkins.

Deepening Customer Relationships

Modern, interactive ATMs can also be connected with a financial institution’s core systems in order to deepen customer relationships. Watkins noted that Fiserv is uniquely positioned to do this, as it is also a core provider and has a robust card services program as well. He said interactive ATMs can be connected to core systems via APIs, which “lays the groundwork for future possibilities as well.”

This turns ATMs into more than just mere cash dispensers, but full-fledged customer touchpoints no different than the mobile or online channels.

For example, the ATM can be connected with CRM systems so that consumers’ full financial picture with the institution is known at the time when they interact with the ATM.

“So, you can deliver a targeted offer right there, similar to what we might do in online banking,” Watkins said.

Grotta compared this ability akin to what is happening in the realm of super apps, where a multitude of features are offered through a single app.

“You pool together more functionality and more of a consumer’s financial history and background into one single place,” Grotta said.

Another key advantage of modern, smart ATMs is that they can be serviced remotely, Watkins said, which means they can be repaired quicker as opposed to having to wait for someone to come in and physically fix the machine.

“It really helps with your ATM fleet uptime,” he added. “It greatly increases ATM availability.”

The post Next-Gen ATMs Are a Key Part of Banks’ Digital Strategy appeared first on PaymentsJournal.

Crypto ATMs are a type of payments kiosk that allows users to buy and sell cryptocurrency. These machines are similar to traditional ATM machines, but they use cryptocurrency instead of fiat currency. Crypto ATMs typically allow users to buy Bitcoin, Ethereum, Litecoin, and other digital assets. In some cases, they may also allow users to exchange one cryptocurrency for another. Crypto ATMs are becoming increasingly popular as more people become interested in investing in cryptocurrency. They offer a convenient way to buy and sell digital assets, and they can be found in many retail locations around the world.

Politico posted an in-depth article regarding the proliferation of ATMs that can facilitate crypto transactions. The article reports that there about 34,000 of these kiosks (or “BTMs” as they are called) in existence with the vast majority of them in the U.S. This little corner of the payments industry has received a relatively light regulatory touch to date, but regulators are circling and trying to figure out how to balance the objectives of allowing cryptocurrencies to evolve and maybe flourish  particularly when they serve the needs of the un-banked, but also clamp down on their use in illegal activities. I would hazard a guess that it will take some time before any specific regulation is handed down given the complexity of the issues and the lack of clarity around which agencies really regulate cryptocurrency. Here are some excerpts from the article:

Welcome to the world of cryptocurrency ATMs, also known as “BTMs” (the B is for Bitcoin), which have mushroomed in the past several years, even if most people don’t understand exactly what they’re for. The precise number of these machines in the United States seems to depend on who’s counting, but most analyses put it at about 34,000. That’s nearly 90 percent of the world’s total tally. Canada ranks a distant second with an estimated 2,500.

Crypto fans and crypto companies see the machines as an extension of the promise embodied by Bitcoin, the largest cryptocurrency: another step in the democratization of finance.

But as they’ve proliferated, state regulators across the country, and even some federal officials, have started to raise concerns. Legitimate companies may run most of these machines, but some are set up by unlicensed operators. The regulators worry that crypto ATMs can too neatly serve the interests of money launderers and fraudsters, or could hide payments to sex and drug traffickers; even for honest brokers, their fees are considerably higher than normal bank transactions. They also market themselves, sometimes aggressively, to low-income people who may not understand the risks of moving their money into cryptocurrency, which is currently in the midst of one of its intermittent crashes.

States are trying to figure out how to handle these machines at a time when they’re still grappling with what to do about crypto itself. In most states, banking officials head up the task of sorting through policy. And in most states, they haven’t yet explicitly decided that digital money trades need the same kind of money transmitting licenses that govern traditional finance.

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

The post Crypto ATMs Have Regulators Stymied appeared first on PaymentsJournal.

There is no denying the world has changed significantly over the past couple of years. Even now there are still travel restrictions, fluctuating health requirements, and other ongoing disruptions to our everyday lives. But the changes don’t only affect people as individuals, they have also had a heavy effect on financial institutions and the relationship they have with both consumers and their employees.

Fortunately for banks and credit unions, ATM outsourcing is a go-to solution for many of the issues these changes have brought to the financial institution arena. Here are three ways ATM outsourcing can help your institution overcome the challenges you are facing today.

The Staffing Problem

Over three-quarters (80%) of community banks and credit unions have openly stated their biggest concern right now is staffing. The problem is not a big surprise. In June 2021 nearly four million people quit their jobs. There are plenty of reasons for the mass exodus, including health concerns, a lack of childcare and higher expectations from a modern world job.

A lack of staff directly affects branch operations, call center functionality, and general customer and member service. Longer lines and extended wait times, whether in-person, online chat, or over the phone, is simply bad for business.

But studies have shown that consumers have come to rely heavily on the ATM. Over half of consumers used an ATM or drive-thru to get cash in 2020. And Millennials and Gen Z adults not only trust ATMs to make deposits, but they also visit these convenient machines often more than seven times per month.

So how does this help resolve staffing dilemmas? By combining higher-function self-service technologies such as Interactive Teller Machines (ITM), Video Teller Machines (VTM), deposit automation and off-premise ATMs, institutions can reduce pressure on tellers. Instead, banks and credit unions can host a smaller in-branch staff to answer bigger questions and provide larger-dollar services. By offering as much as 90% of services through an ITM or VTM, institutions can then focus staffing efforts on building support for online chat and phone conversations.

A reliable ATM outsourcing partner can help a financial institution determine their ITM, VTM and ATM needs ─ right now and in the future and generate a comprehensive plan that makes transitioning to a more self-service format easy.

Too Much Capital

The cost of keeping good staff is not the only thing that has gone up. The price of goods and services has been steadily on the rise. Everything from standard office supplies to big ticket equipment, like computers, printers, and ATMs, have seen a steady rise in cost. And, with a growing reliance on self-service, how can financial institutions avoid taking on additional capital expenses?

ATM outsourcing can not only provide a wide range of new self-service equipment with more functionality, but it can also take current machines off the books. Some outsourcing opportunities will include purchasing existing machines outright. Instead of keeping those large dollar values wrapped up on accounting worksheets, financial institutions can lower their costs by wrapping all their operations costs into a monthly payment for a complete service package that includes dependable daily operations, robust machinery, software upgrades and security patches, and any hardware compliance mandates.

Self-Service Where It’s Needed

Consumers report visiting ATMs around three times per month to deposit cash. The average consumer visits an ATM a minimum of four times per month to make a withdrawal. And now with more people working from home and statistics showing that up to 77% of employers will use a hybrid work model going forward, ATM outsourcing can help improve and expand ATM access for bank and credit union account holders in a way that is both practical and economical.

Whether it is full-function machines, off-premise locations, or branch transformation, ATM outsourcing helps provide the options consumers are looking for when it comes to banking. And it offers the solution to growing convenience banks and credit unions need in this changing financial environment.

The post 3 Ways ATM Outsourcing Solves Post-Pandemic Problems for Banks and Credit Unions appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: Buyer PaymentsInsights: Payment Methods-Consistency and Flexibility

Most Important Features in Deciding to Use an ATM: 

• 28% of consumers say that a convenient location is the most important feature when deciding to use an ATM.
• 24% of consumers say that low/no fees are the most important feature when deciding to use an ATM.
• 17% of consumers say that a safe and secure location is the most important feature when deciding to use an ATM.
• 9% of consumers say that reliability of the ATM is the most important feature when deciding to use an ATM.
• 9% of consumers say that a trusted brand on the ATM is the most important feature when deciding to use an ATM.
• 8% of consumers say that prior use – using the ATM routinely – is the most important feature when deciding to use an ATM.

About Report

Mercator Advisory Group’s most recent consumer survey report, Buyer PaymentsInsights: Payment Methods-Consistency and Flexibility, from its annual Buyer PaymentsInsights series, examines U.S. consumers’ payment habits while shopping for goods and services in-store and online.

The report, which is based on an online consumer survey administered to 3,003 U.S adults between May 21 and June 22, 2021, covers the buyer experience and includes questions that explore consumers’ preferred payment methods, most trusted payment type for information security, knowledge of cryptocurrency, and many more payment-related subjects.

Various aspects of how American consumers interact with the payments’ ecosystem are brought together to highlight key trends in consumer behavior, preferences, and motivations, influenced by consumer perceptions and experiences with payment-related issues associated with payment options in a rapidly changing payment environment.

Readers will be presented with a detailed analysis of the impact of demographic characteristics on consumer behaviors and inclinations, general consumer trends, as well as actionable insights for industry players to consider.

“With so many fraud events associated with payment transactions, information security is at the forefront of many consumers’ minds when shopping in stores or online. As the data shows, consumers prefer a consistent payment method that they trust to ensure information security. Yet at the same time, it’s important to them that retailers provide flexible payment options to address the need for shopping convenience,” said Amy Dunckelmann, Vice President of Research Operations at Mercator Advisory Group.

The post Most Important Features in Deciding to Use an ATM:  appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences

Consumers are Interested in These ATM Characteristics When Choosing a New Bank: 

• 65% of consumers are interested or very interested in the convenience of an ATM location near their home. 
• 60% of consumers are interested or very interested in their bank rebating any surcharges they pay for ATM fees. 
• 60% of consumers are interested or very interested in the number of ATMs the bank has in their local area. 
• 59% of consumers are interested or very interested in ATMs without long wait times to use them.
• 58% of consumers are interested or very interested in the number of branch-based ATMs the bank has in their local area. 
• 54% of consumers are interested and very interested in their bank participating in a surcharge-free ATM network. 

About Report

Mercator Advisory Group’s most recent report, North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences documents consumers’ current usage metrics of ATMs in the U.S. national market. The survey of 3,000 U.S. adults (December 2020) represents a continuation of a series of consumer and business surveys conducted annually by Mercator Advisory Group since 2009.

This Data Summary Report presents the survey results for U.S. consumers’ use of ATMs, through commonly-used graphs with core demographic breakdowns, for easy incorporation in planning/analysis documents. This is just one of multiple Data Summary and Analysis Reports on the United States for program subscribers from this survey, on topics including Buy Now, Pay Later lending, bill payment, subscription buying, fraud experiences, and effects of the COVID-19 pandemic.“These survey results provide up-to-date baseline data for financial institutions and other stakeholders serving the U.S. market,” stated Amy Dunckelmann, Vice President, Research Operations at Mercator Advisory Group. “The U.S. continues as a dynamic market for the ATM industry.”

The post Consumers are Interested in These ATM Characteristics When Choosing a New Bank: appeared first on PaymentsJournal.

This article claims mainframes have problems adhering to PCI and shouldn’t be used to drive ATMs, but this is a huge oversimplification. The IBM Z systems are explicitly called out but the IBM Z will run a range of operating systems including Linux, z/OS, z/VSE, z/TPF, and z/VM. So who is responsible for PCI compliance when the application is in Linux?

The article suggests that the senior management might fail to audit the mainframe, which is then entirely on that company, not the mainframe hardware. PCI compliance is not technology-specific it requires system architects and programmers to consider how PCI compliance will be implemented as the system is developed, regardless of hardware or operating system:

“Late last year, the PCI Security Standards Council and ATM Industry Association jointly issued a bulletin warning about cash-out attacks on ATMs in which fraudsters manipulated fraud detection mechanisms and stole money from ATMs. In a blog, the organizations recommended that banks operating ATMs through a mainframe use software designed to monitor any unusual changes in files that could indicate unauthorized access or malicious behavior. Such software is referred to as file integrity monitoring. File integrity monitoring became part of PCI regulation updates two years ago to address new needs as technology advances.

But though banks continue to lean on mainframes to process most transactions, including payments, experts wonder whether they are paying enough attention to this PCI recommendation. According to IBM, 44 of the top 50 banks use the IBM Z mainframe and 86% of all credit card transactions run through the Z mainframe.

PCI compliance efforts can slip past a bank security team for any number of reasons, one being the belief that the mainframe has been within PCI scope all along, another that upcoming changes will make mainframe compliance a moot point.”

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

The post PCI Isn’t an IBM Mainframe Issue; It’s in the Application and the Applications Environment appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences

The Data Around Consumer Interest in New ATM Transaction Types: 

• 58% of U.S. consumers are interested or very interested in using an ATM to withdraw cash in more specific denominations. 
• 41% of consumers are interested or very interested in using an ATM to receive special retail offers, like coupons and ticket discounts. 
• 41% of consumers are interested or very interested in using an ATM to increase their daily limit for cash withdrawal. 
• 36% of consumers are interested or very interested in using an ATM to transfer money to another person’s account at the same bank.
• 36% of consumers are interested or very interested in using an ATM to pay household bills for accounts registered with the bank.
• 35% of consumers are interested or very interested in using an ATM to cash a payroll check by inserting it into the ATM.

About Report

Mercator Advisory Group’s most recent report, North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences documents consumers’ current usage metrics of ATMs in the U.S. national market. The survey of 3,000 U.S. adults (December 2020) represents a continuation of a series of consumer and business surveys conducted annually by Mercator Advisory Group since 2009.

This Data Summary Report presents the survey results for U.S. consumers’ use of ATMs, through commonly-used graphs with core demographic breakdowns, for easy incorporation in planning/analysis documents. This is just one of multiple Data Summary and Analysis Reports on the United States for program subscribers from this survey, on topics including Buy Now, Pay Later lending, bill payment, subscription buying, fraud experiences, and effects of the COVID-19 pandemic.

“These survey results provide up-to-date baseline data for financial institutions and other stakeholders serving the U.S. market,” stated Amy Dunckelmann, Vice President, Research Operations at Mercator Advisory Group. “The U.S. continues as a dynamic market for the ATM industry.”

The post The Data Around Consumer Interest in New ATM Transaction Types:  appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences 

Consumers’ Openness to New Methods of ATM Authentication

• 20% of surveyed consumers are willing to try a QR code from a smartphone as a way of authenticating at the ATM, versus 28% of consumers who would not try it.
• 24% of consumers are willing to try biometric authentication via an ATM as a way of authenticating at the ATM, versus 25% of consumers who would not try it.
• 24% of consumers are willing to try biometric authentication via smartphone to authenticate at the ATM, versus 26% of consumers who would not try it.
• 24% of consumers are willing to try a one-time code at the ATM to authenticate at the ATM, versus 23% who would not try it. 
• 7% of consumers have already tried biometric authentication via smartphone and one-time code at the ATM to authenticate at the ATM.
• In comparison, just 5% of consumers have tried QR code from smartphone and biometric authentication via ATM to authenticate at the ATM.

About Report

Mercator Advisory Group’s most recent report, North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences documents consumers’ current usage metrics of ATMs in the U.S. national market. The survey of 3,000 U.S. adults (December 2020) represents a continuation of a series of consumer and business surveys conducted annually by Mercator Advisory Group since 2009.

This Data Summary Report presents the survey results for U.S. consumers’ use of ATMs, through commonly-used graphs with core demographic breakdowns, for easy incorporation in planning/analysis documents. This is just one of multiple Data Summary and Analysis Reports on the United States for program subscribers from this survey, on topics including Buy Now, Pay Later lending, bill payment, subscription buying, fraud experiences, and effects of the COVID-19 pandemic.

“These survey results provide up-to-date baseline data for financial institutions and other stakeholders serving the U.S. market,” stated Amy Dunckelmann, Vice President, Research Operations at Mercator Advisory Group. “The U.S. continues as a dynamic market for the ATM industry.”

The post Consumers’ Openness to New Methods of ATM Authentication: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences

U.S. Consumers’ Attitudes Toward ATM Surcharges by Household Income Level:

• Consumers from high income households ($100K+) are the most likely of any income group to actively seek out ATMs that are in surcharge-free networks.
• 64% of individuals from households earning $100K+ actively seek out ATMs in surcharge-free networks, versus 56% of individuals from households earning under $100K. 
• Individuals from households earning $100K+ are about equally as likely (74%) to do anything they can to avoid paying surcharges as those from households earning under $100k (75%).  
• Consumers from high income households are more likely to not pay ATM surcharges because their bank reimburses them ATM fees. 
• 41% of individuals from households earning $100K+ get their ATM fees reimbursed by their bank.
• In comparison, just 26% of individuals from households earning less than $100K get their ATM fees reimbursed by their bank.

About Report

Mercator Advisory Group’s most recent report, North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences documents consumers’ current usage metrics of ATMs in the U.S. national market. The survey of 3,000 U.S. adults (December 2020) represents a continuation of a series of consumer and business surveys conducted annually by Mercator Advisory Group since 2009.

This Data Summary Report presents the survey results for U.S. consumers’ use of ATMs, through commonly-used graphs with core demographic breakdowns, for easy incorporation in planning/analysis documents. This is just one of multiple Data Summary and Analysis Reports on the United States for program subscribers from this survey, on topics including Buy Now, Pay Later lending, bill payment, subscription buying, fraud experiences, and effects of the COVID-19 pandemic.

“These survey results provide up-to-date baseline data for financial institutions and other stakeholders serving the U.S. market,” stated Amy Dunckelmann, Vice President, Research Operations at Mercator Advisory Group. “The U.S. continues as a dynamic market for the ATM industry.”

The post U.S. Consumers’ Attitudes Toward ATM Surcharges by Household Income Level: appeared first on PaymentsJournal.

Miami is known for a lot of things: roads lined with palm trees, perfect weather, beaches that rival Monet’s Beaches at Pourville, and glamorous nightlife. But the Magic City is adding another act to its bag of tricks.

The city has gone crypto.

Miami’s mayor, Francis Suarez, recently announced that Miami would allow employees to collect salaries and accept tax payments with cryptocurrency. The Miami Heat’s arena is being renamed for a cryptocurrency called FTX, and some neighborhoods even have Bitcoin ATMs. But perhaps the largest statement of crypto’s arrival to the Floridian hot spot was the Bitcoin 2021 Miami conference.

From June 4-5, Bitcoin enthusiasts from around the globe flew south to listen to a series of speakers discuss the nuances of crypto. One of those enthusiasts included PaymentsJournal’s very own Director of Content Strategy, Ryan Cole.

Cole attended the exhibition with a goal to better map the ecosystem. “Who is in this space?” he asked. “What are these companies connected to? Who is their target audience? And how far along is this space developed?”

One company that really stood out was a fintech called Verady. CEO Kell Canty described Verady as the last mile between Bitcoin and QuickBooks, and it seems to be helping CFOs book and recognize Bitcoin as a treasury asset. Bitcoin faces a number of challenges from CFOs because it’s taxed as property, it’s not considered a payment, which is completely different from how dollars are accounted. Verady serves to help these CFOs who are hesitant or having trouble integrating into the crypto space.

Prime Trust also had a stellar performance at the conference. The technology company was abuzz in seemingly every conversation being had among attending Bitcoiners. Cole describes it as “crypto in a box.” Prime Trust serves to enable all relationships necessary behind a crypto startup: banking, licensing, KYC & AML. Here, these companies can connect fiat to crypto rails. Prime Trust chief value proposition seems to be time-to-market for emerging crypto service providers.

Another player seemingly connected everywhere is Anchorage Digital:  the first federally chartered digital bank, who cut their teeth in the market handling crypto’s custody challenge. An issue that Bitcoin companie soften run into is where to store their currency. Some will use ‘cold storage’ and keep it on a flashdrive, or ‘hot storage,’ where the currency is kept on an exchange. Anchorage Digital offers a secure place to keep Bitcoin and other cryptocurrency, as well as lending, trading, and financing.

There were plenty of payment-adjacent companies in attendance, as well. BitPay is more merchant-focused and specializes in facilitating transactions, essentially enabling merchant acceptance. They do everything from payment to invoicing, and clients never have to touch any of the crypto. Other payment-adjacent companies included Moon Technologies, MoonPay, and Embedly.

Two payroll companies, BitWage and Hedge, caught the attention of Cole. They both seemed to be fulfilling the same mission of helping companies get an HR advantage over their competitors by paying employees in Bitcoin or other forms of crypto. The idea is to take away the hassle of conversion for the employees and pay directly in digital currency.

Most intriguing perhaps were the Bitcoin A.T.M.s. Coin Source and Bitcoin Depot were two stand out representatives in this arena, explaining the allure of a technology whose traditional form seems to be losing popularity. The expectation for Bitcoin A.T.M.s is that they will appeal to older, more traditional bankers who prefer a more familiar way of interacting with currency. They may also pique the interest of the underbanked or those looking to make smaller transactions.

Rounding out the vendor highlights are the exchange players. While some are working more on the B2B side and others focused more on invoices, their overall services are quite similar. Trustlink, Celsius, TradeStation, Edge, and BitStamp are all offering similar Bitcoin as a store value. They’re less interested in how to transact Bitcoin and more concentrated on how to get and trade it.

All-in-all, the Bitcoin 2021 Conference’s first Miami-based event was a huge success. At least 12,000 people were in attendance, enthusiastically participating in lectures and donning swag from an array of vendors. While there was much to learn from crypto experts, there was one major takeaway from the action-packed weekend: we must stop underestimating Bitcoin.

The post Miami’s Bitcoin 2021 Conference Brings the Digital Heat appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences

ATM Visits for Cash Vary by Age and Gender in the U.S.: 

• A Mercator Advisory Group survey of 3,000 U.S. consumers found that respondents’ top reason for visiting an ATM is to get cash.
• Overall, consumers reported an average of 4.4 ATM visits per month to get cash.
• Men visited ATMs to get cash an average of 5.7 times per month, versus an average of 3.3 visits for women.
• Young adults (18-34) visited ATMs to get cash an average of 7.1 times per month, versus an average of 1.5 visits for adults 55+.
• Overall, consumers reported an average of 2.8 ATM visits per month to deposit cash. 
• Overall, consumers visited ATMs to deposit cash an average of 2.8 times per month.
• Young adults (18-24) deposited cash at an ATM an average of 4.7 times per month, compared to 0.5 times per month for consumers 55+.

About Report

Mercator Advisory Group’s most recent report, North American PaymentsInsights, U.S.: Data Summary Report; ATM Usage and Preferences documents consumers’ current usage metrics of ATMs in the U.S. national market. The survey of 3,000 U.S. adults (December 2020) represents a continuation of a series of consumer and business surveys conducted annually by Mercator Advisory Group since 2009.

This Data Summary Report presents the survey results for U.S. consumers’ use of ATMs, through commonly-used graphs with core demographic breakdowns, for easy incorporation in planning/analysis documents. This is just one of multiple Data Summary and Analysis Reports on the United States for program subscribers from this survey, on topics including Buy Now, Pay Later lending, bill payment, subscription buying, fraud experiences, and effects of the COVID-19 pandemic.

“These survey results provide up-to-date baseline data for financial institutions and other stakeholders serving the U.S. market,” stated Amy Dunckelmann, Vice President, Research Operations at Mercator Advisory Group. “The U.S. continues as a dynamic market for the ATM industry.”

The post ATM Visits for Cash Vary by Age and Gender in the U.S.: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: North American PaymentsInsights, Canada: Data Summary Report; ATM Usage and Preferences

Canadian Attitudes Toward ATM Surcharges Vary By Age: 

• 85% of adults 55+ will do anything they can to avoid paying ATM surcharges–the highest of any age group.
• In comparison, 75% of consumers ages 35-54 and 63% of consumers ages 18-34 will do anything to avoid paying surcharges.
• At 44%, young adults (18-34) are the most willing to pay ATM surcharges to use a convenient machine.
• In comparison, just 15% of adults 55+ and 22% of adults ages 35-54 are willing to pay surcharges to use a convenient ATM machine.
• 32% of adults ages 18-34 don’t pay ATM surcharges because their bank or credit union reimburses their ATM fees.
• In comparison, 21% of adults ages 35-54 and 18% of adults ages 55+ have their ATM fees reimbursed by their bank or credit union. 

About Report

Mercator Advisory Group’s most recent report, North American PaymentsInsights, Canada: Data Summary Report; ATM Usage and Preferences documents consumers’ current usage metrics of ATMs in the Canadian national market. The survey of 1,000 Canadian adults (December 2020) represents a continuation of a series of consumer and business surveys conducted annually by Mercator Advisory Group since 2009.

This Data Summary Report presents the survey results for Canadian consumers’ use of ATMs, through commonly-used graphs with core demographic breakdowns, for easy incorporation in planning/analysis documents. This is just one of multiple Data Summary and Analysis Reports on Canada which will be made available to program subscribers from this survey, on topics including “Buy Now, Pay Later” lending, bill payment, subscription buying, fraud experiences, and effects of the COVID-19 pandemic.

“These survey results provide up-to-date baseline data for financial institutions and other stakeholders serving the Canadian market,” stated Amy Dunckelmann, Vice President, Research Operations at Mercator Advisory Group. “Documenting Canada’s unique consumer profile is key for providers serving or entering this diverse market.”

The post Canadian Attitudes Toward ATM Surcharges Vary By Age: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Report: North American PaymentsInsights, Canada: Data Summary Report; ATM Usage and Preferences

 Canadian Attitudes Toward ATM Surcharges by Household Income:

• 76% of Canadians earning $100K+ do anything they can to avoid paying ATM surcharges, compared to 75% of those earning under $100K.
• 64% of Canadians earning $100K+ actively seek out ATMs that are in surcharge-free networks, compared to 60% of those earning under $100K.
• 54% of $100K+ earners occassionally pay ATM surchases, but try to use their bank’s machines, compared to 48% of those earning under $100K.
• High income earners are more likely to never have paid an ATM surcharge.
• 45% of $100K+ earners have never paid an ATM surcharge, versus 36% of those earning under $100K.
• 29% of $100K+ earners do not pay ATM surcharges because their bank reimbuses their ATM fees, versus 20% of those earning under $100K.

About Report

Mercator Advisory Group’s most recent report, North American PaymentsInsights, Canada: Data Summary Report; ATM Usage and Preferences documents consumers’ current usage metrics of ATMs in the Canadian national market. The survey of 1,000 Canadian adults (December 2020) represents a continuation of a series of consumer and business surveys conducted annually by Mercator Advisory Group since 2009.

This Data Summary Report presents the survey results for Canadian consumers’ use of ATMs, through commonly-used graphs with core demographic breakdowns, for easy incorporation in planning/analysis documents. This is just one of multiple Data Summary and Analysis Reports on Canada which will be made available to program subscribers from this survey, on topics including “Buy Now, Pay Later” lending, bill payment, subscription buying, fraud experiences, and effects of the COVID-19 pandemic.

“These survey results provide up-to-date baseline data for financial institutions and other stakeholders serving the Canadian market,” stated Amy Dunckelmann, Vice President, Research Operations at Mercator Advisory Group. “Documenting Canada’s unique consumer profile is key for providers serving or entering this diverse market.”

The post Canadian Attitudes Toward ATM Surcharges by Household Income: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint:  Government Issued Prepaid Cards: Efficient Cash Access and Distribution. 

ATM Fees and Management Costs Drive Government Prepaid Card Costs:

• In 2019, ATM Fees accounted for $97.37 million of an overall $152.69 million in program costs.
• The second largest government issued prepaid cost was ‘account servicing,’ totaling $33.3 million in costs.
• Customer service inquiries accounted for $12.36 million of a total $152.69 million in program costs. 
• The last substantial driver of costs for government issued prepaid cards (2019) was ‘purchase transactions’, which cost $5.9 million.
• Payment card costs are very low at 1.12% (2019), and few cost categories can benefit from further optimization. 
• ATM fees are kept to a minimum if the customer stays within a limit or network

About Report

Prepaid cards played a significant role in distributing CARES Act funds to 3.6 million Americans, but the payment form extends deep into many government benefit programs.

Ten benefit programs carried $136.2 billion in prepaid loads during 2019, but only incurred $152.7 million in costs among all government distribution channels. For those in need, prepaid cards provide quick access to funds and a reliable, safe way to receive cash value.

The post ATM Fees and Management Costs Drive Government Prepaid Card Costs: appeared first on PaymentsJournal.

Expanding partner network highlights distributor benefits of Bitcoin Depot 

ATLANTA – Bitcoin Depot, the largest and fastest growing Bitcoin ATM (BTM) operator, announced today that it has added 50 Independent Sales Organizations (ISOs) and independent ATM deployers (IADs) to its partner channel, further solidifying its dominance of the BTM market. The company now operates over 1,700 BTMs in the U.S. and Canada. 

By partnering with Bitcoin Depot, ATM companies can simplify deployment of BTMs at multiple locations, at no cost to them and at scale. While deployment of traditional ATMs continues to decline due to an over saturation of terminals, BTMs are filling the gap as a profitable alternative. As Bitcoin adoption surges, these trends will continue to grow. In 2020 alone, over 7,060 BTMs were deployed worldwide, compared to 2,263 in 2019. Bitcoin Depot estimates that in the next ten years there will be as many BTMs as there are traditional ATMs today.  

“For ATM companies, adding Bitcoin kiosks to their portfolio is a win-win. It allows them to supplement traditional ATM placements with BTMs, essentially adding a more viable revenue stream to the mix,” says Mark Smith, Business Development Manager for Bitcoin Depot. “Gas station and convenience store owners also have an opportunity to drive more of their customers into the store, as well as obtain greater wallet share.  For example, customers will stop in to get cash at the ATM, then deposit some of the money into the bitcoin kiosk and spend the rest in-store.  

Bitcoin Depot’s Partners benefit from:  

• Leading partner program in the industry with best-in-class BTM experience 
• Earnings up to $25,000 per BTM placement through its extensive global network 
• 100% turn-key experience, delivering end-to-end management of the BTM 
• Uncapped growth potential, no bitcoin-expertise and zero capital investment  
• Increased foot traffic and greater business exposure 

Become a Bitcoin Depot Partner today: https://bitcoindepot.com/host/ 

The post Bitcoin Depot® Signs On 50 ISOs and IADs appeared first on PaymentsJournal.

The global leader in real-time digital payment software and solutions, ACI Worldwide today announced a partnership with Auriga, a market leader in omni-channel banking and payment systems. A next-generation ATM and self-service banking network will be unveiled by companies to boost the omni-channel banking experience for customers worldwide.

Under this collaboration, ACI’s Enterprise Payments Platform will integrate with Auriga’s omni-channel banking solution, WinWebServer, an industry leading platform that helps banks handle new payment forms, standards and regulations to allow digital transformation (WWS). This will provide banks with next-generation self-service banking that, in a highly protected, modernized technology framework, merges physical and digital channels.

By combining ATM with smartphone and internet self-service banking capabilities, the joint solution, available alongside ACI’s continued support for conventional ATM technologies, would provide better customer service. It will enable banks to identify an integrated strategy for the channel, optimize and transform their branch and ATM assets.

“The pandemic has changed, among other things, the way consumers bank. It has also accelerated the digital transformation journey for banks—ensuring accessibility to banking services around the world,” said Jeremy Wilmot, chief product officer, ACI Worldwide. “ACI’s partnership with Auriga will deliver more self-service banking options for consumers that will drive the digital banking experience forward. A digital-first company with a strong reputation in omni-channel banking, Auriga’s partnership with ACI will help meet the growing global demand for next-generation ATM capabilities.”

“Today’s consumers use a wide range of channels to access banking services, switching from one device to another continuously. Increasingly, they demand cash and non-cash services at their convenience, 24 x 7. ATM technology has too often been an obstacle to meeting these changing demands. ATM owners must adapt to meet these needs through the advancement of the ATM infrastructure by converging physical and digital services for a consistent consumer experience. Our partnership with ACI will not only deliver optimal self-service banking offerings across channels, but will also expand our global footprint,” said Vincenzo Fiore, CEO, Auriga. “In addition, our solution offers centralized ATM security operations on a single platform, ensuring minimal impact on device performance.”

This partnership build on the omni-channel focus that ACI has had on the payments industry as pointed out by Benny Tadele from ACI and Raymond Pucci from Mercator Advisory Group on a recent PaymentsJournal podcast.  

The post ACI Builds on Omni-Channel Focus with Recent Auriga Partnership appeared first on PaymentsJournal.

Diebold announced that it has implemented its relatively new debit card processing solution with one of the largest global banks.  (Apparently the bank didn’t want to lend its brand to the announcement as the name of bank wasn’t included in the announcement). 

What is known is that the implementation of the debit solution, part of Diebold’s Vynamic Payments solution suite will coordinate debit activity on the bank’s millions of cards across thousands of branches and tens of thousands of ATMs. Here’s more from the announcement:

As consumer banking becomes increasingly digital, Diebold Nixdorf sought to re-envision payments processing as a key business enabler. Leveraging a cloud-native, microservice architecture and consolidating multiple channels to a single platform unlocks a range of benefits, including: continuous integration and deployment, rapid introduction of new features and payment types, and highly efficient processing at scale. These capabilities from Diebold Nixdorf underpin new consumer functions, including transaction automation and omnichannel connectivity, such as mobile-to-ATM and teller-to-ATM capability. This enables the financial institution to build seamless consumer journeys, regardless of the banking channel, while providing a consistent and personalized user experience for its global clients.

Gerrard Schmid, president and chief executive officer at Diebold Nixdorf, said: “It’s a pleasure to partner with such an innovative, global financial institution to define the future of payments software. Together, we are deploying a solution that provides massive gains in development time to market, processing speed and business agility, utilizing a robust, scalable and cloud-native architecture. This partnership and others, like our recent announcement with America First Credit Union, illustrate how Vynamic Payments delivers a next-generation solution that powers the ongoing digitization of consumer banking.”

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

The post Diebold Nixdorf Rolls Out Debit Processing appeared first on PaymentsJournal.

NCR continues to fill its shopping cart. Earlier this month, the company announced its acquisition of Freshop, a software developer for online order fulfillment in the grocery space, a vertical that NCR knows exceptionally well.

Now NCR looks to continue bulking up its payment chops by buying Cardtronics. In late 2018, NCR bought Jet Pay and its merchant payments platform. These moves accentuate NCR’s push into more added-value software and services for the retail, restaurant, and banking sectors.

The following excerpt from a ZDNet article reports more on the topic:

NCR said Monday that it’s buying Cardtronics in a deal valued at $2.5 billion. NCR, a predominate maker of ATMs and point-of-sale terminals, plans to use the deal to accelerate its as-a-service strategy and non-hardware revenue.

Cardtronics is a non-bank ATM operator and provider of managed services and payment processing for retailers and financial institutions. NCR said Cardtronic’s Allpoint retail-based, surcharge-free ATM network is highly complementary to NCR’s payments platform. The company also sees an opportunity to push further into the payments space via Cardtronics’ existing network and installed base. 

“This transaction accelerates the NCR-as-a-Service strategy we laid out at Investor Day in December, further shifts NCR’s revenue mix to software, services and recurring revenue, and adds value for our customers,” said NCR chief executive Michael Hayford. “We have had a long-standing relationship with Cardtronics and its outstanding team. Its Allpoint network is highly complementary to NCR’s payments platform, and the combined company will be able to seamlessly connect retail and banking customers. Simply put, we are better together.”

Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group

The post NCR Rings Up Deal to Buy Cardtronics appeared first on PaymentsJournal.

Nearly three-fourths (72%) of Americans plan to continue using cash in the COVID-19 era and beyond; two in five (43%) would prefer to perform banking activities at an ATM

For today’s consumer, ATM use largely focuses on accessing cash, and that access is still important in the COVID-19 era, according to new MetaBank^® research. There’s also an opportunity to reimagine a key industry mainstay — the ATM — as a technologically advanced, interactive teller machine focused on self-service.

These are among the key insights identified in MetaBank’s research on the ATM industry landscape, which was announced today. MetaBank, N.A. (“Meta”), is a national bank, a subsidiary of Meta Financial Group, Inc.^® (Nasdaq: CASH) and a leader in providing innovative financial solutions to consumers and businesses throughout the country.

“The ways consumers want and need to access cash and other banking services are evolving, in part due to the COVID-19 pandemic,” said Sheree Thornsberry, Meta EVP and Head of Payments. “This presents a tremendous opportunity for financial institutions and Independent ATM Deployers to reimagine the way they work together and the future of the industry itself, as our research showed consumers are increasingly interested in options that allow for self-service.”

In August 2020, Meta surveyed more than 1,200 U.S. adults to examine their post-pandemic sentiments about ATM and cash usage. Then, Meta paired that with a pre-pandemic analysis of the ATM industry aggregated by Mastercard from a number of expert sources, including Federal Reserve System, ATM Industry Association, Bankers Equipment Service, RBR Global, Star Financial Services, Transaction Network Services, Wall Street Journal and more. Key trends identified from this research include:

• Cash is still being used, even in a COVID-19 world. From March to June 2020, the peak of stay-at-home orders in many places nationwide, more than half of Americans (55%) withdrew cash from an ATM. In fact, Americans withdrew cash during this time a lot — 44% withdrew cash more than once, and 7% even did so more than ten times. Why? For everything from day-to-day purchases (11%) and small expenses (11%) to peer-to-peer transactions (8%). Further, nearly one in five (19%) value having cash more now than they did before the pandemic, and 59% say it has not changed their position on the use of cash.

• ATMs are primarily used to obtain cash — and there’s an opportunity to leverage this industry mainstay for more.  Despite advancements that have given ATMs more functionality than ever, 60% only use them for the purpose of cash withdrawals. But, because of high operational costs, banks are shuttering branches at a record rate. This will likely be accelerated by COVID-19, as 24% say they’re less likely to visit a bank branch due to the pandemic.¹ In a post-COVID world, self service will be key. ATMs can help to fill this need, and the Meta research showed consumers have an appetite for this shift — 43% of Americans are interested in completing banking activities like cashing checks, making deposits and withdrawals or video conferencing with a remote teller at an ATM instead of having to physically go into a bank branch.

• Rising costs will also trigger an increase in Independent ATM Deployer (“IAD”)-managed ATMs. Over half of all ATMs are currently deployed by Independent ATM Deployers (“IADs”). In the coming years, this percentage is expected to increase. The operational costs of managing a fleet of ATMs have been and continue to be very high, causing financial institutions to outsource a number of their ATM operations to IADs. Some financial institutions are selling, outsourcing ATM operations or creating branding agreements with IADs. Branding agreements allow banks to maintain their presence and customer loyalty without the costs associated with growing a fleet of ATMs.

Through its ATM sponsorship services, Meta supports hundreds of thousands of ATMs nationwide with access to national and regional debit networks. Meta balances innovation and oversight, fostering collaborative partnerships with industry leading IADs, processors and networks, and has the largest ATM footprint in the country.

The post MetaBank® Study Reveals Opportunity to Reimagine ATMs appeared first on PaymentsJournal.

Many financial institutions are pondering where their ATMs fit in their long term strategic plans. Do they upgrade software and hardware as a part of an overall digital transformation? Do ATMs need to handle more transactional activities as branches take on more consultative roles? Should surcharge free options be in the mix? What about co-branding strategies? Or should FIs hand over their ATMs to a third-party to focus more on their mobile and online banking activities? 

Last week Huntington Bancshares Incorporated announced that they made the decision to upgrade the software in their entire network of ATMs. Two things that they want to accomplish as reported in ATM Marketplace as a part of this upgrade:

• Introduce more cash denominations
• Have the ability to offer NFC authentication with a card or an app at the ATM

You may think of those two endeavors on completely different ends of the banking technology spectrum, but they are the enhancements that consumers tell us that they want from ATMs. Cash in more flexible denominations has been the most requested enhancement that Mercator Advisory Group has found consistently in its annual study regarding ATM use. The ability to “tap and go” at the ATM has become more popular since the pandemic.

Here’s more from the article about Huntington’s efforts:

Huntington has announced it’s upgrading the software of its entire ATM network and replacing 400 machines by year-end. The upgraded ATMs will run on state-of-the-art Hyosung MoniPlus2S software and will provide customers with greater security, speed and flexibility. It will also allow customers to choose bills in denominations of $1, $5, $20 or $50, according to a press release.

This ATM upgrade prepares the company for future enhancements that will include tap-and-go authentication through an ATM card or mobile app. And because the Hyosung software operates on ATMs from multiple manufacturers, Huntington customers will have a consistent experience regardless of location.

The Huntington upgrade will be Hyosung America’s largest U.S. installation of MoniPlus software across a multi-vendor suite of ATMs.

“Our customers continue to rely on the convenience of ATMs, and this comprehensive upgrade of our ATM fleet demonstrates our commitment to improving their experience,” Andy Harmening, Huntington’s director of consumer and business banking, said in the release. “Our customers have told us security, flexibility and ease of use are important to them and, true to our purpose of looking out for people, we have turned their feedback into action.”

Overview by Sarah Grotta, Director, Merchant Services at Mercator Advisory Group

The post Huntington Makes a Big Investment in Its ATM Fleet appeared first on PaymentsJournal.

Are Americans Luddites when it comes to payments? Are we falling behind the rest of the world when it comes to the use of mobile wallets?

In short, the answer is yes. Many parts of the world have embraced mobile payment options at a much higher rate than the U.S. This finding shouldn’t come as a surprise to anyone involved with payments.

Are recent article in the London Post, Will Digital Wallets Completely Dominate Payments? Discusses how mobile payments have taken hold in many countries around the world. The reasons he cites are the same we’ve heard since the mobile wallets were introduced years ago – increased security, convenience, transaction speed, shorter and faster checkout queues, etc.

The author points out there are several other reason for their popularity:

First and most important, digital wallets allow users to make quick and easy purchases in-store and online, withdraw cash from ATMs, and send money peer to peer. All of that is followed by great convenience and flexibility in payment choice.

Aside from that, e-wallets are very useful due to their same-day transactions (and top-notch security). Most people who shop online or play online games know all of the benefits of not waiting for traditional banking procedures that can sometimes last for days. On top of that, their data is well encrypted. The failing of traditional banking is especially seen in one industry – online casinos. Customers are turning away from the traditional bank (or “wire”) transfer in their droves and towards e-wallets like PayPal, Neteller, and Skrill – relative newcomers to the finance sector. And usual reasons behind it are faster withdrawal times, money being separate from the bank (unlike paying with credit and debit card), great security, and similar.

Maybe it’s me but I would have liked to see some hard numbers behind these usage proclamations. That is to say I’d like to know what percent of each population he mentions actually use these technologies to pay. I’m not trying to throw shade, just trying to get some empirical evidence for comparison purchases. Perhaps I’ve been jaded by the past 10 or so years where, every year, industry people have announced “This is going to be the year of the mobile wallet.”

All that said, I do think that the U.S. is a bit of a dinosaur when it comes to the use of the mobile wallets and I’ve written about it recently explaining why I think Americans are slow to adopt this technology. There is no one simple answer.

Personally, I think the slow adoption of mobile payment adoption has more to do with stakeholder confusion (not just consumer but merchant and FIs too) due to a lack of clarity and multiple players and platforms more so than Americans being Luddites.

Overview by Peter Reville, Director, Primary Research Services at Mercator Advisory Group

The post Mobile Payments in the U.S. – The Luddites or The Confused appeared first on PaymentsJournal.

ATMs provide a convenient way to access cash when needed, and cash is still the preferred payment method for many transactions. However, there are some disadvantages to ATMs and cash use. First, ATMs can be expensive to use, particularly if you withdraw a large amount of cash. Second, cash can be easily lost or stolen, and it can be difficult to replace. Finally, ATMs and cash are not always available when you need them.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – 2021 Outlook: U.S. Debit Cards and Alternative Products

ATMs and Cash Use Took Some Interesting Twists in 2020:

• Cash withdrawals had been trending down and continued to do so in 2020, but not as precipitously as some predicted. 
• Some consumers were concerned about cash & COVID-19 and avoided it. Others gravitated toward cash as a safe haven in a crisis. 
• The ATM came to the rescue as branches closed or operated by appointment only.
• Purely transactional activities moved to ATMs, giving FIs reason to expedite digital transformation plans for their ATM fleets.
• P2P app use skyrocketed as more consumers looked for cash-free and remote options.
• Existing users found new reasons to use P2P apps, including reimbursing others for shared shopping trips and sending funds to friends and family in need.

About Report

The events following the onset of the global pandemic helped to crystalize consumer attitudes regarding payment habits.

The progression of digital payments, contactless options and the momentum achieved by faster and real-time payments shone a light on the path these payment types would take as they leapfrogged in development and use by two to three years in the span of just a few months. The pandemic gave users a reason, beyond technology for the sake of technology, to adopt these payments. 

The post ATMs and Cash Use Took Some Interesting Twists in 2020: appeared first on PaymentsJournal.

During the early days of the COVID-19 outbreak, there was a significant amount of press given to the pending dissolution of the retail bank branch system with the pandemic forcing people to use ATMs and mobile banking. This author was a little skeptical about these gloom and doom proclamations but did realize that branch dynamics will likely change as customers get used to using non-branch banking services like mobile banking.  

A recent article in American Banker announced that U.S. Bank was closing 400 more branches in addition to the 300 that it had closed over the past year and one-half. Interestingly, the reasons given for the closures were driven, at least in part, by some of the customer behaviors that have been accelerated by COVID.

“A lot of the decisions with respect to branches are really tied to changing customer behaviors,” [Chief Financial Officer Terry] Dolan said, noting that three-quarters of service transactions and over half of loan applications are now processed digitally. “The role of the branch is changing, and as it becomes much more of an advice and problem-resolution center, the density and distribution you have to have changes over time.”

There is also the cost saving associated with closing all these branches that cannot be overlooked.  According to Dolan, the company will save around $150 million as a result of closing these branches. Much of these savings will be used to continue the company’s heavy technology spend.

All of this being said, while branches may be losing their popularity within the U.S. Bank executive suite, an article in The Financial Brand, Why that Spike in COVID-19 Bank Branch Closings Didn’t Happen (Yet), points to FDIC data that indicates that yes, the number of branches is declining, but it has been for years. Furthermore, they are not seeing a significant numbers in branch closures since the start of the pandemic some eight month ago.

Everyone I know in the industry expected big declines in branch counts, but that’s not what the FDIC data indicate.

They show a net decline of 1,463 branches. That figure is only slightly up from the last year’s change (+12%). And more surprisingly, the data shows nearly 1,200 new branches, about 20% higher than the average of the last ten years. Credit union branch counts declined by about 400 branches during the last 12-month period, a reversal of the last few years’ trend of slight increases in branch counts. [To read the chart below, branch counts (dotted lines) are read off the left-hand axis and firm counts of banks and credit unions (solid lines) are read off the right-hand axis.]

I’m not going to get on my soapbox to rail against the value of overly pessimistic predictions made by others. Rather, I want to talk about what these data mean.

Branch closures are going to continue, and probably at a faster rate than new branches will open. As the chart above illustrates, the net number of branches has been declining for years and there is nothing to tell us that this trend is going to change. Bank customers will continue migrate many of their routine banking activities on their computer or smartphone. However, it doesn’t look like COVID has brought on a huge increase in the number of closures.

Just like the rest of the retail world is transforming, retail banking is evolving as the way people interact with the physical manifestation of the bank changes in response to the new reality. 

Overview by Peter Reville, Director, Primary Research Services at Mercator Advisory Group

The post The Death of the Branch May Be Premature appeared first on PaymentsJournal.

As with most aspects of daily and commercial life, COVID-19 is changing the way people bank. Branch closures, limited hours, access by appointment only, and reduced staffing have disrupted traditional banking practices, forcing consumers to shift their financial activity to digital channels.

In some regards, COVID-19 has simply hastened existing trends in banking. New technology and shifting consumer expectations were already causing banks to focus more on their digital offerings in recent years. Still, the degree to which this digital transformation has accelerated is significant, especially as financial institutions try to plan for business after the pandemic ends.

To help banking professionals understand how COVID-19 is changing the industry and what this means for the future of consumer banking, PaymentsJournal and Cardtronics hosted a webinar titled “COVID-19 & The Rapidly Changing Face of the Distribution Channel.”

The webinar featured Justin Upton, General Manager of ATM Branding Solutions at Cardtronics, and Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group. During the event, Upton and Grotta discussed what branch transformation entails, trends in consumer banking prior to the outbreak of COVID-19, how the pandemic has influenced these trends, and what this all means for the future of banking.

“Branch transformation is not an event, it is something that is ongoing”

Unsurprisingly, branch transformation has become a hotter topic of discussion in recent months. The term means different things to different people, with some using it to describe the closure of physical branches to save money, while others use it to discuss changes in customer service practices.

Upton offered a more substantive definition: “To us, it’s really about looking at consumer behavior and how your cardholders choose to bank and then mirroring your service delivery after that.” He stressed that since different financial institutions serve client bases with unique needs, “there isn’t a one size fits all solution.”

Instead, each institution must determine how to improve its service delivery model without disenfranchising customers. The process should be gradual and spread out across different stages. Additionally, it should involve balancing the needs of customers, including those who prefer traditional banking in physical branches and those who are more comfortable with digital solutions. “Branch transformation is not an event, it is something that is ongoing,” Upton noted.

Pre-COVID changes to banking

To effectively right-size the branch network, financial institutions need to grasp trends in consumer habits and expectations. A good place to start is understanding what factors drive a consumer’s choice of their primary financial institution.

Upton explained that between 2015 and 2019, brand awareness and digital self-service became the primary drivers of customer acquisition for primary checking accounts, as the above graphic shows. In other words, people became less concerned with whether there was a physical branch they could go into and more interested in mobile capabilities.

Convenience goes digital

One of the most important considerations for consumers is convenience. People increasingly want quick, seamless experiences in all aspects of their financial lives. When it comes to today’s banking, convenience often relates to digital experiences rather than physical ones.

Upton also explained that when consumers were asked what a bank could do to become more convenient, they indicated that branch-centric factors (longer hours, number of locations, etc.) have become secondary in recent years. Instead, consumers are putting greater emphasis on self-service options that fit how they choose to live, showcased by the rising importance of mobile banking and the ability to use a variety of self-service ATMs fee-free.

Branch closures have been on the rise (but the branch is not dead)

The primacy of digital experiences contributed to many branch closures even prior to the pandemic. “You can see there have been a massive number of branch closures over the past 10-15 years,” said Upton. “We would expect this trend to continue even if the pandemic didn’t occur.”

That is not to say that physical branches became obsolete, as many customers still enjoy going into a bank and physically interacting with a teller. Customers still use branches for higher value interactions with branch staff—such as financial advice and welfare—although these tend to be by appointment only during this pandemic.

Moreover, people want to access to cash and therefore to ATMs, meaning that financial institutions need to maintain some form of a physical footprint for their customers. Grotta agreed with this assessment, pointing out that Mercator Advisory Group’s consumer surveys reflect similar trends. In one survey, 69% of consumers said that ATM locations near their home was an important consideration when selecting a financial institution.

Fees are also an important factor. Mercator found that 67% of consumers consider ATM fees when selecting a bank. Cardtronics’ data reinforces this finding; when consumers who recently switched financial institutions were asked the reason why, 28% reported it was due to fees.

COVID-19 has accelerated digital adoption

Since the pandemic forced physical stores of all sorts to close or drastically reduce hours, it comes as no surprise that it has reduced foot traffic in bank branches and accelerated branch closures.

Upton cited one survey which found that 65% of banks were considering branch consolidation in the near future. Even banks that aren’t closing have witnessed a steep reduction in people visiting physical branches. During April and May 2020, branch traffic fell more than 30% compared to the same time last year. The closure of branches and reduction in physical service means that consumers are forced to pursue digital alternatives. Mercator found that since COVID began, nearly a quarter of consumers reported using online banking more than they had before.

Further, a large portion of people (between 10-12%, depending on the technology) have reported using new payment technology for the first time, including mobile wallets and QR codes. While those percentages may seem low, Grotta pointed out that getting this many consumers to use a new product is exceedingly difficult: “Such a habit change would normally take years to achieve. Yet this year, due to the pandemic, it’s happened in a matter of a few weeks.”

Cash use is up too

Another trend caused by COVID-19 is the rise in cash use. Despite sensational news stories heralding the death of cash during the pandemic, paper money has actually become more popular. Mercator found that 19% of consumers reported withdrawing cash from an ATM more frequently during the pandemic than they had before, while 47% reported no change.

Data from the Federal Reserve reveals that the amount of cash in circulation shot up during the pandemic. Upton attributed the surge in cash use to a variety of factors, including consumers’ desire to better budget their funds in a time of crisis, a lack of access to credit, and a general desire to be prepared in case of a catastrophe.

What does this mean for the future?

After fleshing out how consumer banking was changing before the pandemic and the ways these changes were amplified by COVID-19, Upton and Grotta delved into what this all means for the future. Those interested in learning what the future has in store can listen to the webinar here.

The post COVID-19 & Consumer Banking: The Digital Transformation of the Branch appeared first on PaymentsJournal.

PSCU, the nation’s premier payments credit union service organization, has updated its weekly transaction analysis from its Owner credit union members on a same-store basis to identify the impact of COVID-19 on consumer spending and shopping trends. An infographic is also attached.

To provide relevant updates on market performance, experts from PSCU’s Advisors Plus and Data & Analytics teams today released year-over-year weekly performance data trends. In this week’s installment, PSCU compares the 39^th week of the year (the week ending September 27, 2020 compared to the week ending September 29, 2019).

• Overall card payment volume growth rates were steady in Week 39, with strength continuing in debit and credit remaining positive.
  • Debit card spend was up 17.3%, slightly lower than the four-week average of +18.5%. Transactions were up 3.7% and have been positive for 13 consecutive weeks.
  • Credit card spend achieved its fourth consecutive week of positive growth at +3.4%, which is lower than the four-week average of +4.3%. Transactions were down 2.6%, hovering close to the four-week average of -1.9%.
• Consumers continue strong usage of contactless, mobile wallets and card-not-present (CNP) alternatives, while using less cash.
  • Contactless “tap-and-go” transactions via dual interface cards continue to gain adoption. Debit contactless transactions as a percent of card-present activity on contactless debit cards have grown from around 8.4% in mid-January to 14.4% in Week 39, including a two-percentage-point increase in the past six weeks. Contactless credit transactions have also grown from 6.5% in mid-January to last week finishing at 10.2% of card-present activity on contactless credit cards.
  • Mobile wallet (i.e. “Pays”) transactions and purchases for both credit and debit cards had positive results. Debit mobile wallet purchases finished Week 39 up 70.2% year over year, slightly lower than the four-week average of +71.8%. Credit mobile wallet purchases were up 50.2% year over year, higher than the four-week average of +49.9%. These results represent six supported mobile wallets: Apple Pay, Fitbit Pay, Garmin Pay, Google Pay, LG Pay and Samsung Pay.
  • We continue to see more volume conducted via Card Not Present (CNP) transactions. For credit, 51.6% of purchase volume and 40.9% of transactions were CNP. For debit, 41.2% of purchase volume and 28% of transactions were CNP. Purchase mix has held steady and is up 6.1 percentage points year over year for credit and 6.4 for debit. Transaction mix is also steady and up 8.6 percentage points for credit and 6.9 for debit year over year.
  • Cash withdrawal transactions at the ATM remain down year over year. For the most recent week, the number of cash withdrawals was down 20.7%, just below the average for the past four weeks of -18.8%.
• From a merchant category perspective, purchase growth rates in Week 39 were steady and trends remain positive overall.
  • Grocery remained steady this week, with purchases up 9.7% for debit and up 17% for credit. 
  • Goods continued strong performance, with purchases up 36.6% for debit and up 23.4% for credit.
  • Drug Stores showed the largest credit category decrease, down 3.3 percentage points from last week, to +3.3%. Drug Stores remained steady on debit, finishing at +5.3%, down just 0.1 percentage points from last week.
• Our regional analysis of spend utilizes the segmentation used by the U.S. Bureau of Economic Analysis (BEA) for economic analysis. Please see the attached infographic for a map of changes to credit and debit purchases by region.
  • Overall U.S. spend was up 3.4% for credit purchases. The Plains (+6.0%) and the Southeast (+5.9%) finished as the strongest regions for Week 39. Hawaii (-4.9%) and the New England region (-1.8%) had the lowest credit purchase performance.
  • Overall U.S. spend was up 17.3% for debit purchases. The Great Lakes (+21.1%), the Mideast (+18.6%), the Plains (+17.8%) and the Southeast (+17.5%) finished above the U.S. average for Week 39. The Far West region (+10.4%) and Hawaii (+7.7%) showed the lowest debit purchase performance.
  • PSCU’s Weekly U.S. State/Territory Analysis is available at www.PSCU.com/COVID19, ranking U.S. states and territories by year-over-year performance for debit purchases, credit purchases and ATM transactions.
• This week’s deeper dive explores the Restaurant sector, which currently makes up 6.8% of overall credit purchases and 11.1% of all debit purchases. While four sub-categories comprise this sector, two Purchase Merchant Categories – Eating Places/Restaurants (“Eating Places”) and Fast Food Restaurants (“Fast Food”) – represent 95% of purchases. For Week 39, the percentage of spend within these sub-categories are 69% at Eating Places and 27% at Fast Food for credit and 57% at Eating Places and 40% at Fast Food for debit. The other two categories in this sector are Drinking Places and Caterers.
  • For debit, purchases in the four sub-categories have largely worked their way back to near or above 2019 levels. Drinking Places finished Week 39 up 11.6% year over year, up from the four-week average of +8.1%. Fast Food purchases were up 10.2% in Week 39, in line with the four-week average of +10.8%. Eating Places were up 5.3% in Week 39, up slightly from the four-week average of +4.2%. Caterers were down 3.1% in Week 39, noticeably down from the four-week average of +5.3%.
  • For credit, purchases in Fast Food have nearly returned to 2019 levels, finishing week 39 down 0.3%, down slightly from the four-week average of +1.4%. The remaining sub-categories are still well below 2019 levels. Caterers finished Week 39 at -32.0%, down from the four-week average of -25.3%. Drinking Places were down 19.6% in Week 39, up from the four-week average of -23.3%. Eating Places were down 16.7% in Week 39, in line with the four-week average of -16.9%.
  • In the two dominant sub-categories of the Restaurant sector, Eating Places and Fast Food, the average purchase amounts have been elevated since April for both credit and debit, indicating that purchase frequency has been slower to return. For Week 39, the credit average purchase amount for Eating Places is $38.16, up 5.5% year over year and for Fast Food is $12.65, up 14.1%. For debit, the average purchase amount for Eating Places is $30.86, up 12.7%, and for Fast Food is $11.29, up 15.5%.
  • Restaurant purchases are clearly one of the more impacted sectors in the shift to Card Not Present activity.
    • For debit purchases, the percentage change in Card Not Present purchases for Week 39 is up 110%, down from the four-week average of +112%, and has been over 100% for the past 26 weeks.
    • For credit purchases, the percentage change in Card Not Present purchases for Week 39 is up 89%, down slightly from the four-week average of +91.4% and has been above this level for the past 25 weeks.

“Week 39 saw another strong week of performance in both debit and credit purchase volume, fueled by strong growth in retail,” said Glynn Frechette, SVP, Advisors Plus at PSCU. “Contactless transactions continued to surge, up two percentage points over the past six weeks on debit, representing stronger week-to-week growth than we have historically seen. In this week’s deeper dive into the Restaurant sector, we saw that card-not-present activity continues to grow exponentially year over year. Both of these trends are good indicators of the continued behavioral changes and adaptation of both consumers and businesses in a post-pandemic environment.”

PSCU will continue to develop and share analysis of transaction trends on a regular basis.

The post PSCU Tracking Transaction Trends Amid COVID-19: Week Ending September 27, 2020 appeared first on PaymentsJournal.

Something interesting is afoot in the U.K. ATMs are becoming harder to find and as a result cash usage is down. This decline in ATMs has been accelerated by the COVID-19 pandemic as branches are closing and store-based ATMs are also becoming scarcer as establishments close or ATM are removed to promote social distancing.

A recent article in the U.K. version of Wired magazine, The pandemic has killed cash, cites some scary statistics for those who still use cash:

ATM withdrawals dropped 60 per cent when lockdown began in March, according to Link, the UK’s largest ATM provider. Constituency data obtained from the GMB trade union shows that cash machines are vanishing at a breakneck rate, with an 8.9 per cent drop across the country from April to June. Throughout lockdown 9,000 ATMs disconnected from Link’s network at some point – a result of public places closing during the peak of the first wave, or neighbouring machines being removed to promote social distancing. As of July, only 33 per cent of these had been reconnected. While withdrawal volumes picked up once restrictions eased, figures from as recently as September 20 show that usage is still 40 per cent lower than it was this time in 2019.

The pandemic has brought on a surge in the use of plastic for many consumers around the globe. As we all know, e-commerce and remote purchasing has skyrocketed while in-store visits have declined, largely by necessity driven by the pandemic. Many of the new ways to acquire products and services rely on some form of card payment rather than cash. All this accelerates the timeline for a “world without cash.”

As the article makes clear, the drive to a “world without cash” is not without casualties. There is still a portion of people who rely on cash. The reasons for their reliance on cash could be a lack of technological savviness, perhaps being unbanked or underbanked, distrust in the banking system, or a simple behavioral comfort with cash. Whatever the reason, the article provides examples of people who are having a difficult time finding places to get cash and the problems they face as a result.

Will there be a significant decrease in available ATMs in the U.S.? Probably not any time soon, but that doesn’t mean that it isn’t in the future. Data from Mercator Advisory Group show American reliance on cash declining and the bulk of cash transactions are going to small ticket purchases (think QSRs and convenience stores). To combat the potential of the exclusion of cash users, some municipalities in the U.S. are mandating merchants accept cash.

In summary, if you want to see how cash will fare in the future, keep an eye on the number of ATMs installed.

Overview by Peter Reville, Director, Primary Research Services at Mercator Advisory Group

The post Where’s the Nearest ATM? appeared first on PaymentsJournal.

The payments industry is constantly shifting due to technological innovation and changing consumer expectations. Driving many of these changes on the business side are fintechs, companies focused on applying technology that disrupts the financial services industry and empowers consumers in new ways.

Coming at financial services from a technology-led mindset, many fintechs rely on app-based digital platforms that allow people to conduct all sorts of financial activity with better rates and a finely crafted user experience. From loans to e-commerce and everything in between, app-based digital platforms have changed the way people shop, pay, and bank.

One major shortcoming of many fintech offerings, however, has been the physical interface, specifically, a way to work with cash. Even though consumers have more options to conduct financial transactions than ever before, app-based financial services, by their nature, do not provide a way to access or deposit physical currency. Given the continued strong consumer demand for cash, this shortcoming is not trivial.

To get a sense of how consumers’ cash needs interact with mobile banking features, Cardtronics commissioned a consumer survey with findings revealed in a recent white paper titled “Mobile Cash Access: Tomorrow’s Must Have Fintech Feature Explained.” The paper details how digital wallets offering cash access have a competitive advantage over those that do not.

Cash is critical

In an age where digital payment offerings abound, it is fair to ask what the role of cash looks like today and in the future. A plethora of digital payment platforms, from P2P wallets to tried and true debit and credit cards, continue to jockey for share of wallet and share of mind. However, despite the stiff competition, cash is still a critical part of payments.

“Consumers are not ready to give up cash,” noted Peter Reville, director of Primary Research Services at Mercator Advisory Group. “Despite a number of different payment solutions available to them, cash still plays a part in their payment repertoire,” he continued.

In fact, the Cardtronics paper, citing the Federal Reserve’s Diary of Consumer Payment Choice, points out that “cash payments account for 35 percent of in-person payments and nearly 50 percent of payments under $10.” Based on this fact, it’s no surprise that Cardtronics’ survey found that access to cash was important to consumers, even in the context of digital wallets and app-based financial services.

Cash access can help digital wallets become a consumer’s primary financial service provider

Between 50 to 60 million U.S. consumers use mobile banking applications of some variety. Many of these consumers use apps from traditional banks and credit unions, but up to 15 million consumers use a non-bank digital service as their primary financial services provider.

In either case, both traditional and non-traditional financial companies want to ultimately become consumers’ primary financial service provider. Cash access can help make this a reality.

When asked what features were important when choosing a primary bank or deposit account, 69.5% of consumers named “convenient, fee-free access to cash through an ATM.” The second most popular response, at 62%, was “convenient branch locations.” Right behind that response was “convenient locations to deposit cash,” at 59.2%. Consumers value physical access, an on-ramp to their digital finances firmly planted in the real world, and they want that access to be convenient and easy.

Companies in the digital wallet space should take note of these findings. In comparison to the nearly 70% of consumers who listed convenient access to cash as important, only 54.6% listed a “mobile banking application to manage my account” as an important consideration. While app-based or online banking has become table stakes, access to cash remains essential. As the authors of the Cardtronics report state: “The reality of today’s digital-first banking world is that consumers want both virtual and physical, and gaining a competitive advantage in the battle for consumer dollars requires integrating digital account services with physical ATM access.”

Mobile cash access at the ATM appeals to many consumers

Adding mobile cash access to a digital platform appeals to many consumers. For those already using digital platforms, including Venmo and Paypal, adding this functionally can result in increased use of that platform. Cardtronics’ survey found that 31% of consumers would “start using this service more often” if they had ATM access. A full break down of responses is presented below.

For those not using these non-traditional platforms—about 15% of consumers—adding mobile ATM access could encourage them to use such digital platforms for the first time. Cardtronics found that half of respondents reported a willingness to try an alternative financial platform, “with 31% saying they would ‘consider using’ such a service, 16% indicating they would start using such a service, and 4% saying they would begin using the service and start moving some of their traditional banking to the new service.” The findings are displayed in the graphic below.

Overall, 56% of all respondents “showed some level of interest in mobile access at the ATM.” Taken together, all these responses show how adding mobile ATM access to a digital wallet can drive usage and elevate the importance of that digital wallet in the consumer’s financial life.

How to offer mobile cash access

The Cardtronics report concludes by explaining how fintechs, and others, can offer mobile cash access. The functionality can be implemented using several different methods, including “using a one-time-use passcode delivered via the app, through tap-and-go using NFC (Near Field Communication), or by scanning a QR code.”

Another challenge is finding the right ATM network. For fintechs, creating an effective financial app that utilizes NFC or QR codes is the easy part. Finding ATM networks that support mobile cash access is more difficult. As the authors of the Cardtronics report noted, “connecting those digital bits and bytes to real-life dollars and cents has not been easy.” While there are many third-party ATM networks, fintechs should look for those that have best-in-breed solutions. These solutions must be flexible, have proven distribution channels, and entail “continuous technology investment in the ATM channel, including the ability to take in cash (not just dispense it) and provide a fully digital card-free interface via a mobile cash access strategy.”

Those interested in learning more can view Cardtronics’ white paper here.

The post The Importance of Cash… In Digital Wallets appeared first on PaymentsJournal.

In recent years, there has been an increase in the use of cardless ATM authentication, also known as remote cardless cash access (RCA). This technology allows users to withdraw cash from an ATM without using a physical debit or credit card. Instead, they simply enter their mobile phone number into the ATM and then receive a one-time code that can be used to access their account. Although RCA offers a number of advantages over traditional ATM cards, there are also some potential security risks to consider.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report –2020 Annual U.S. Debit Card Market Data Review

3 Types of Cardless ATM Authentication Might Emerge Given the Pandemic:

•  NFC ATMs: near field communication using a mobile phone plus ATM.
• One-Time Password: a cardholder opens their banking app and asks to receive a one-time password.
• One-Time Password: The user enters the one time password and ATM PIN and proceeds with a typical ATM transaction.
• QR Code: cardholder opens their banking app and asks for contactless; some systems allow for requests like $ amount.
• QR Code: an ATM will produce a QR code, which a consumer will snap with their phone to finalize the transaction. 
• According to Mercator, only 4% of consumers had tried a cardless form of ATM access in 2019. 

About Report

Debit card activity in the United States was very brisk in 2019, posting strong growth, but the future growth of debit cards and how they will be used will change materially as the economy is altered by the impacts of the global novel coronavirus pandemic. Mercator Advisory Group’s latest research report, 2020 Annual U.S. Debit Card Market Data Review, presents data on how the market was progressing and what the future may hold for debit card issuers and cardholders.

“Use of debit cards now and in the near term will be slowed the most by historically high unemployment, which affects typical debit card users, who make less than $75,000 annually on average, and by the closure of all but essential retailers. Offsetting this is the trend seen in the past of consumers favoring debit during recessionary periods,” commented Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group, author of the report.

The post 3 Types of Cardless ATM Authentication Might Emerge Given the Pandemic appeared first on PaymentsJournal.

The COVID-19 pandemic has had a major impact on the way we use ATMs. In the past, ATMs were primarily used for cash withdrawals and deposits. However, with the widespread use of contactless payments, many people are now using their ATMs for tasks such as checking their balance and transferring money between accounts. This shift in usage has been driven by a need for greater convenience and hygiene, as people look to avoid contact with high-touch surfaces.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report –2020 Annual U.S. Debit Card Market Data Review

ATM Usage Pre and Post-COVID

Pre-COVID: 

• On average, consumers were withdrawing from an ATM 4 times a month.
• On average, consumers were depositing cash in an ATM 2.5 times a month. 
• On average, consumers were depositing checks 2.2 times per month.

 Post-COVID: 

• COVID-19’s immediate impact was to create a rush to withdraw cash.
• Following cash hoarding, ATM usage declined rapidly as store closures and social distancing took effect.
• Rumors that ATMs were “as dirty as a NYC subway” did not help.
• Mercator postulates that cash will likely not return to pre-COVID levels as P2P digital alternatives gain lasting traction.

About Report

Debit card activity in the United States was very brisk in 2019, posting strong growth, but the future growth of debit cards and how they will be used will change materially as the economy is altered by the impacts of the global novel coronavirus pandemic. Mercator Advisory Group’s latest research report, 2020 Annual U.S. Debit Card Market Data Review, presents data on how the market was progressing and what the future may hold for debit card issuers and cardholders.

“Use of debit cards now and in the near term will be slowed the most by historically high unemployment, which affects typical debit card users, who make less than $75,000 annually on average, and by the closure of all but essential retailers. Offsetting this is the trend seen in the past of consumers favoring debit during recessionary periods,” commented Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group, author of the report.

The post ATM Usage Pre and Post-COVID: appeared first on PaymentsJournal.

The State of New York provides unemployment benefit recipients with a prepaid card so they can receive their funds automatically, on time through an electronic deposit and without the need to cash a check. While a fantastic solution, some recipients have a hard time using the balance unless they first get cash.  This is creating long lines at a particular ATM in Manhattan that allows for large withdrawals for free.  Consumers can go to other financial institutions to get a free withdrawal, but they often don’t allow a withdrawal that is large enough for a New York City sized rent payment.  With so many more individuals receiving unemployment benefits, this is creating a long line for one particular ATM.  Details were reported in the New York Times:

The line started small about two months ago with a handful of people who had recently been laid off. But now, nearly three months into the economic crisis, which has claimed more than 40 million jobs nationwide, it stretches 50 or 60 people long throughout the day and down almost an entire Manhattan block.

They are all waiting to access the same thing: the lone A.T.M. inside the only New York City branch for KeyBank, a regional Ohio bank in charge of distributing unemployment benefits to out-of-work New Yorkers.

The people in line at the bank are a cross-section of the city’s economy and represent its most vulnerable workers — janitors, bartenders, school bus drivers, deliverers — who struggled to survive even during normal times with low-paying jobs. Some brought their children, others used walkers to move around and most traveled there from outside Manhattan.

People getting unemployment benefits have another option to avoid fees, which can range from $1.50 to $3 per transaction, by using the card at other A.T.M.s in the Allpoint network, which has 1,000 locations in New York City, including a handful within walking distance of the KeyBank branch.

Those A.T.M.s have smaller withdrawal limits per transaction, usually around $200 to $400, though they can be used consecutively every day until $1,500 is taken out, a KeyBank spokeswoman, Kimberly Kowalski, said.

Overview provided by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group.

The post Automated Unemployment Deposits Still Have Individuals Looking for Cash appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentInsights, U.S. – ATMs: No Fee for Me.

Interest in New Types of ATM Transactions is Dictated by Income: 

• Households earning <$50K are most interested in bill pay functionality from ATMs.
• Households earning $50-100K are interested in adding money to prepaid card products from ATMs.
• Households earning $50-100K are interested in executing person to person transfers from the ATM.
• Households earning $50-100K would like to receive coupons, discounts, and rewards from the ATM.
• Households earning >$100K are interested in purchasing tickets and fare cards from ATMs.
• Households earning >$100K are interested in purchasing prepaid cards from the ATM.
• The most popular ATM functionality among all incomes is to withdraw in specific denominations.

About Report

Mercator Advisory Group’s most recent consumer survey report, ATMs: No Fee for Me, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of and perspective on ATMs.

The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use ATMs for cash withdrawals, deposits, and other transaction types. It also presents data on their opinions about paying ATM fees and methods of authenticating users at the ATM.

The post Interest in New Types of ATM Transactions is Dictated by Income: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentInsights, U.S. – ATMs: No Fee for Me.

Gender & Age Matter with ATM Usage:

• Over half of women in the US have not made an ATM deposit in the past 12 months.
• Of all US consumers not making ATM deposits, their primary reason is they prefer a teller.
• 10% of US consumers are “not sure how to make a deposit at an ATM.”
• Consumers would rather deposit a $1000 check with a teller than a $50 check.
• Age is a huge determinant for ATM use: 63% of adults 55+ years old prefer to use a bank teller.
• In contrast, 31% of adults 18-34 years old use a bank teller.
• Similarly, 16% of 55+ year olds use mobile deposit vs. 27% of adults 18-34 years old.

About Report

Mercator Advisory Group’s most recent consumer survey report, ATMs: No Fee for Me, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of and perspective on ATMs.

The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use ATMs for cash withdrawals, deposits, and other transaction types. It also presents data on their opinions about paying ATM fees and methods of authenticating users at the ATM.

The post Gender & Age Matter with ATM Usage: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentInsights, U.S. – ATMs: No Fee for Me.

Half of US Adults Won’t Deposit into an ATM If…

• 48% of US adults wont make a deposit at an in-store ATM, even if it’s surcharge-free.
• 22% of US adults would “maybe” make an in-store deposit at an ATM.
• 23% of adults “don’t feel comfortable” banking in a store location.
• 12% of US consumers claim, “the ATM is not a private location.”
• Half of consumers with household income over $100K only pay ATM surcharges when they travel.
• 31% of households with income >$100K have their ATM surcharges reimbursed.
• Higher income consumers are more apt to get reimbursed for ATM fees.

About Report

Mercator Advisory Group’s most recent consumer survey report, ATMs: No Fee for Me, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of and perspective on ATMs.

The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use ATMs for cash withdrawals, deposits, and other transaction types. It also presents data on their opinions about paying ATM fees and methods of authenticating users at the ATM.

The post Half of US Adults Won’t Deposit into an ATM If… appeared first on PaymentsJournal.

For many people, using an ATM is a simple and convenient way to access their money. However, some banks now charge a fee for using an ATM that is not affiliated with their institution. This fee, known as an ATM surcharge, can range from a few cents to several dollars. While the exact amount may vary depending on the bank, the surcharge is typically assessed per transaction.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentInsights, U.S. – ATMs: No Fee for Me.

3 out of 4 Americans Will Do Anything to Avoid an ATM Surcharge:

•  75% of respondents claim they would do “anything” to avoid an ATM surcharge.
• 61% of US consumers “actively seek out ATMs that are surcharge-free.
• 39% of US consumers claim they “have never paid an ATM surcharge”.
• 32% of US consumers are “willing to pay ATM surcharges in order to use a convenient machine.”
• 1 in 4 US consumers doesn’t pay ATM charges because their bank reimburses them.
• 19% of 18-34 year olds are willing to use a ‘not bank-branded’ ATM in-store.
• 55+ year old consumers are the least likely to use ATMs other than their own banks’. 

About Report

Mercator Advisory Group’s most recent consumer survey report, ATMs: No Fee for Me, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of and perspective on ATMs.

The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use ATMs for cash withdrawals, deposits, and other transaction types. It also presents data on their opinions about paying ATM fees and methods of authenticating users at the ATM.

The post 3 out of 4 Americans Will Do Anything to Avoid an ATM Surcharge appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentInsights, U.S. – ATMs: No Fee for Me.

What Percentage of US Consumers Don’t Use ATMs… at All?

• 14% of US consumers don’t use to get cash at all.
• In contrast, 4% of US consumers use to get cash daily.
• The largest portion (22%) of US consumers use to get cash a few times a month.
• 13% of US consumers use to get cash weekly. 
• 27% of US consumers never use to deposit cash.
• 30% of US consumers never use to deposit checks.
• About 13% of US consumers use a few times a year to get cash, deposit cash, and deposit checks.

About Report

Mercator Advisory Group’s most recent consumer survey report, ATMs: No Fee for Me, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of and perspective on ATMs.

The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use ATMs for cash withdrawals, deposits, and other transaction types. It also presents data on their opinions about paying ATM fees and methods of authenticating users at the ATM.

The post What Percentage of US Consumers Don’t Use ATMs… at All? appeared first on PaymentsJournal.

The Demographics of ATM Use:Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentInsights, U.S. – ATMs: No Fee for Me.

The Demographics of ATM Use:

• Average US consumers use ATMs 3.8 times per month to get cash, 2.5 times to deposit cash, and 2.2 times to deposit checks.
• Men use ATMs more frequently than women across all activities.
• The largest discrepancy between male and female ATM use is for getting cash: Male – 4.7 times per month, Female – 3.8 times per month.
• ATM use decreases dramatically with age.
• Young consumers ages 18-34 use ATMs to get cash the most (5.8 times per month) of any age bracket.
• In contrast, older consumers ages 55+ use ATMs to get cash 2.1 times per month.
• 28% of US consumers use ATMs to view statements and 27% use them to pay bills.

About Report

Mercator Advisory Group’s most recent consumer survey report, ATMs: No Fee for Me, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of and perspective on ATMs.

The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use ATMs for cash withdrawals, deposits, and other transaction types. It also presents data on their opinions about paying ATM fees and methods of authenticating users at the ATM.

The post The Demographics of ATM Use appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentInsights, U.S. – ATMs: No Fee for Me.

Women Use These Two Payment Methods More Than Men:

• Debit cards and store cards.
• 70% of women use debit cards compared to 65% of men; 34% of women use store cards compared to 26% of men. 
• Men (17%) tend to use ATM-only cards more than women (13%).
• Overall, Paypal (61%) is more popular among US households than credit cards (51%).
• However, PayPal has low frequency compared to credit and debit cards: it’s used less often.
• Store cards are the only payment method that are both low incidence and low frequency: they’re not very popular or frequently used.
• Charge cards, reloadable prepaid, and ATM-only cards are low incidence and high frequency, implying they have smaller but dedicated audiences. 

About Report

Mercator Advisory Group’s most recent consumer survey report, ATMs: No Fee for Me, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of and perspective on ATMs.

The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use ATMs for cash withdrawals, deposits, and other transaction types. It also presents data on their opinions about paying ATM fees and methods of authenticating users at the ATM.

The post Women Use These Two Payment Methods More Than Men: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentInsights, U.S. – ATMs: No Fee for Me.

Older Adults Are More Likely to Hold All Types of Accounts Except This One:

• Mortgages.37% of 34-54 year olds have a mortgage, the largest amount of any age group.
• Overall, 28% of US consumers pay a mortgage, including 26% of 55+ year olds and 21% of 18-34 year olds.
• Checking accounts are the most popular of accounts, with 89% of U.S. consumers overall.
• 96% of 55+ year olds have a checking account, compared to 89% of 34-54 year olds and 79% of 18-34 year olds.  
• Only 65% of 18-34 year olds have a credit card, compared to 78% of 55+ year olds.
• 20% of 55+ year olds have an online or full service brokerage; 14% of 18-34 year olds have one. 
• 10% of 55+ year olds have an “other” type of account, compared to 4% of 18-34 year olds. 

About Report

Mercator Advisory Group’s most recent consumer survey report, ATMs: No Fee for Me, from the 2019 Technology Survey of the bi-annual North American PaymentsInsights series, examines U.S. consumers’ current use of and perspective on ATMs.

The report, which is based on an online panel survey administered to 3,006 U.S. adults in November-December 2019, presents results from questions exploring how adults in the United States use ATMs for cash withdrawals, deposits, and other transaction types. It also presents data on their opinions about paying ATM fees and methods of authenticating users at the ATM.

The post Older Adults Are More Likely to Hold All Types of Accounts Except This One: appeared first on PaymentsJournal.

Paramount Management Group, one of the leading ATM operators in the United States and Puerto Rico, announced today it has begun applying the BIOPROTECTUs™ System to disinfect and protect its fleet of ATMs. Being used on its fleet of ATMs throughout the U.S. and Puerto Rico, Paramount is the first large scale ATM operator in the industry to utilize ViaClean Technologies’ BIOPROTECTUs products.

The BIOPROTECTUs System encompasses an array of EPA registered and FDA compliant technologies that disinfects and inhibits the growth and spread of problematic bacteria, fungi, algae, mold and viruses, as well as providing long-term antimicrobial protection for up to 90-days.

“The health, wellbeing and safety of our customers, clients and field technicians is our utmost priority,” said Paramount’s Chief Development and Marketing Officer Jorge Fernandez. “That’s why we made the decision to treat our ATM fleet with the BIOPROTECTUs System.”

Paramount expects to complete the initial application of the BIOPROTECTUs System by April 15 and reapply the product every 90 days, or sooner if warranted, in order to actively protect and inhibit the growth and spread of harmful germs.

“Right now, we are living through a period of uncertainty, with cardholders unsure of the safety of virtually any payment device because of the possibility of transmission of COVID-19. Through the application of this system, we aim to diminish some of those fears by providing access to ATMs that have been disinfected and protected,” continued Fernandez.

An integral component in the BIOPROTECTUs system is BIOPROTECT™, a groundbreaking, water-based antimicrobial product, that when applied to both porous and non-porous surfaces creates a highly durable protective shield that provides long-term antimicrobial protection that inhibits and prevents the growth and spread of problematic bacteria, fungi, algae, mold and viruses.

Extensive laboratory testing has established that the System quickly eliminates and provides long-term eradication and suppression of germs and microorganisms. Additional testing will soon begin, under the auspices of the world renowned Global Virus Network, at two of the organization’s Centers of Excellence to confirm the efficacy of the product on COVID-19.

“We are extremely pleased to have the opportunity to work with one of the leading ATM deployers in the United States, especially given their unwavering commitment to the health and wellbeing of their clients and team members and their industry leading safety standards,” said Jim Young, chairman and CEO of ViaClean Technologies. “Prevention is crucial at this time, and the BIOPROTECTUs™ System is the first system on the market that disinfects and protects against the spread of germs, bacteria and viruses.

Young continues, “we welcome Paramount as the newest member of our ViaClean Technologies family and will work together to create an even safer environment for ATM users and their staff.”

The post Paramount Partners with Leading Antibacterial Firm to Protect its ATM Fleet appeared first on PaymentsJournal.

Cardtronics, the world’s largest ATM operator, today announced that Amazon customers can now complete Amazon Cash transactions at more than 400 cash-accepting Cardtronics ATMs in the U.S. The ATMs, part of the Allpoint+ Network of surcharge-free deposit-taking ATMs for Allpoint members, operate card-free, allowing Amazon customers to add cash to their Amazon Balance to make future purchases on Amazon’s online store using only the phone number linked to their Amazon account with no added fees.

Customers start by verifying their mobile phone number and identifying a participating Allpoint+ ATM location at amazon.com/amazoncash. Once at a participating location, the customer can add cash in any amount between $5 and $500 to their Amazon Balance by simply entering their mobile phone number; no card required. After payment, an Amazon.com Gift Card is automatically applied to the customer’s Amazon Balance and available for use on Amazon.com. Visit amazon.com/amazoncash for more information.

The Allpoint+ Network is located in major retail establishments in over a dozen large metropolitan areas, including New York, Chicago, Dallas, Houston, and Miami. Additional ATM placements across major U.S. cities will continue to be added to this network.

“Cardtronics Allpoint+ with Amazon Cash is providing more access and more choice for millions of cash-centric consumers by leveraging the power of our extensive network of convenient ATM locations,” said Brad Nolan, EVP Allpoint Solutions at Cardtronics. “Freeing the ATM from the constraints of traditional debit cards allows us to offer secure and convenient services to a virtually unlimited variety of digital accounts, well outside traditional checking and savings programs.”

About Cardtronics (CATM)

Cardtronics is the trusted leader in financial self-service, enabling cash transactions at approximately 295,000 ATMs across 10 countries in North America, Europe, Asia-Pacific, and Africa. Leveraging our unmatched scale, expertise and innovation, top-tier merchants and businesses of all sizes use our ATM solutions to drive growth, in-store traffic, and retail transactions. Financial services providers rely on Cardtronics to deliver superior service at their own ATMs, on Cardtronics ATMs where they place their brand, and through Cardtronics’ Allpoint Network, the world’s largest surcharge-free ATM network, with over 55,000 locations. As champions of cash, Cardtronics converts digital currency into physical cash, driving payments choice for businesses and consumers alike.

A preferred partner of fintech firms expanding their online and mobile offerings, Cardtronics creates a seamless connection between physical cash and digital accounts. The ATM Mobile Cash API gives participating mobile app platforms the ability to interface with Cardtronics ATMs, enabling cash out and cash in transactions through a simple numeric code, eliminating the need for a costly card-based infrastructure.

The post Cardtronics Allpoint+ ATMs Now Enabling Customers to Add Cash to Their Amazon Balance with Amazon Cash appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – 2019 ATM Benchmark Market Report.

5 ATM trends that look set to continue:

• There are approxomately 470,000 ATMs in the U.S.
• The U.S. has approximately 144 ATMs per 100K people – compared to 42 per 100K people worldwide
• The cost of an ATM withdrawl averages $4.72 in the U.S., and will continue to rise
• 77% of consumers report that they will “do anything” to avoid paying an ATM surcharge fee
• 36% of consumers report they’ve never paid an ATM surcharge fee
• Cardless ATMs are on the rise using NFC, passcodes, and QR technologies
• ATM supplier NCR notes that 90% of ATM orders have been for replacement machines – not new locations

About this report

Despite continued pressure from digital payment products, particularly person-to-person (P2P) applications like Zelle and Venmo that are used to pay back other individuals or to send a gift electronically, ATMs remain a fixture in the banking market. On the horizon is the growing threat of contactless cards, predicted to grow rapidly in the next two years, replacing small dollar purchases at the point-of-sale. A new research report from Mercator Advisory Group titled 2019 ATM Benchmark Market Report explores consumers’ trends in ATM use and other market developments.

“It may surprise some readers how strong the use of ATMs for cash withdrawals and other transactions activities continues to be in the face of digital payments. Consumer data supports the finding that individuals who have adopted newer payment technologies still rely on cash and ATMs for their day-to-day transactions. Despite the importance of ATMs, many financial institutions are handing over the operation of their ATM fleets to third parties to achieve reduced and more predictable maintenance expenses. As management and sometimes ownership of ATMs changes hands, the independent operators will be setting the tone and industry direction for ATMs,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

This research report has 16 pages and 8 exhibits.

Companies mentioned in this report include: Avidia Bank, Bank of America, BMO Harris Bank, Cardtronics, Chase Bank, Fifth Third Bank, GasBuddy, McDonald’s, Payment Alliance International, PNC Bank, Salem Five Bank, and Wells Fargo Bank.

The post 5 ATM Trends That Look Set to Continue: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – 2019 ATM Benchmark Market Report.

Six demographics of a frequent ATM user:

• Young adults aged 18-34 rely more on ATMs than older people
• Heavy ATM users tend to be employed full time
• Heavy ATM users are more likely to use their bank’s ATMs regardless of location
• Frequent ATM users are more likely to be interested in advanced ATM features
• Heavy ATM users are more likely to be from the south (42%)
• Heavy ATM users are more likely to live in a city (44%)

About this report

Despite continued pressure from digital payment products, particularly person-to-person (P2P) applications like Zelle and Venmo that are used to pay back other individuals or to send a gift electronically, ATMs remain a fixture in the banking market. On the horizon is the growing threat of contactless cards, predicted to grow rapidly in the next two years, replacing small dollar purchases at the point-of-sale. A new research report from Mercator Advisory Group titled 2019 ATM Benchmark Market Report explores consumers’ trends in ATM use and other market developments.

“It may surprise some readers how strong the use of ATMs for cash withdrawals and other transactions activities continues to be in the face of digital payments. Consumer data supports the finding that individuals who have adopted newer payment technologies still rely on cash and ATMs for their day-to-day transactions. Despite the importance of ATMs, many financial institutions are handing over the operation of their ATM fleets to third parties to achieve reduced and more predictable maintenance expenses. As management and sometimes ownership of ATMs changes hands, the independent operators will be setting the tone and industry direction for ATMs,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.

This research report has 16 pages and 8 exhibits.

Companies mentioned in this report include: Avidia Bank, Bank of America, BMO Harris Bank, Cardtronics, Chase Bank, Fifth Third Bank, GasBuddy, McDonald’s, Payment Alliance International, PNC Bank, Salem Five Bank, and Wells Fargo Bank.

The post Six Demographics of a Frequent ATM User appeared first on PaymentsJournal.

ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time electronic payment and banking solutions, today announced an extension of its long-term relationship with Cardtronics, the world’s largest ATM operator. Cardtronics, a long-time ACI customer, is modernizing its offerings for merchants and financial service providers through ACI’s UP Retail Payments solution – an integrated platform for all payment channels.

Cardtronics has long relied upon ACI’s Postilion integrated payments engine. Today’s expanding payments ecosystem comprises more channels, devices and payment types, which requires seamless connectivity and faster time to market, as well as flexibility and scalability. The added flexibility of UP Retail Payments, which includes the Universal Payments Framework (UPF), delivers Cardtronics the ability to thrive in today’s environment and expand its global reach.

“As the global consumer financial services industry continues its evolution, we are poised for continued growth, as we not only help our merchant and financial services partners better serve their customers, but also drive more profitability for these partners. And this growth will be supported by ACI’s flexible and scalable UP Retail Payments solution,” said Stuart Mackinnon, CIO and executive vice president, Global Operations and Technology, Cardtronics. “We have a long-standing partnership with ACI, a company with a deep understanding of transaction volumes and an extensive track record of success in working with both merchants and financial services providers.”

“Cardtronics has long delivered industry-leading reliability and services to its many thousands of global customers, which are now challenged more than ever to drive innovation and growth,” said Ruth Fornell, executive vice president, ACI Worldwide. “Leading organizations like Cardtronics continue to broaden their relationship with ACI due to the unmatched solution capabilities within UP Retail Payments.”

ACI’s UP Retail Payments is based on the Universal Payments (UP) Framework and built on open service-oriented architecture for robust payments orchestration. The solution delivers 24×7 secure payment capabilities and is currently used by 8 of the world’s top 10 banks.

The post ACI Worldwide’s Retail Payments Solution Helps Cardtronics Drive More ATM Transactions appeared first on PaymentsJournal.

The financial industry has witnessed major changes in the way people connect with their financial lives. Four out of five interactions with your consumers are now digital, according to BCG[1]. And it’s clear in our conversations with our customers: digital enablement has certainly become table-stakes.

Yet on the flip side, nearly 70% of consumers still say that proximity to branches and ATMs is an important factor in choosing their primary bank[2]—and 82% of banks are confident the branch is paramount when it comes to strengthening relationships[3].

From a consumer perspective, it’s all about whatever is easiest and most convenient in the moment; they just want to conduct their business on their terms, in their time. Banks have got to set up their channels to deliver this on-demand experience wherever and however their customers show up—but they also have an opportunity to guide consumers to the appropriate channel, and in today’s modernized, digitized world, that can increasingly mean the self-service channel.

ATMs are the Powerhouse Player in a Modern Digital Strategy

ATMs have evolved to meet consumers at the intersection of digital and physical channels. What was once a simple cash-and-dash solution has become a critical connection point that can assist your consumers across their entire financial journey. They’re bank-owned, they reach on-us and off-us consumers, you can harness all the data and information flowing through the devices, and they can work both “in the branch” and “as the branch” to be an intermediary between digital and human touchpoints.

The ATM is a hybrid of digital and physical channels. It’s tracking consumer data, similar to your mobile channel and your online channel. And it’s conducting cash-based transactions, just like a teller (remember, globally, cash is still used in 77% of all transactions!). So it’s automating the branch, while still enabling—through tools like video teller and assisted service—that human touch, when consumers desire it. We’ve helped clients get to a place where 100% of their standard services are automated, and now they can truly act as advisors to every individual who walks through the door. And on the back end, they’re benefiting from tons of data on their consumers, which they can turn around and use to personalize experiences across every single channel. 

At a recent client event we polled the audience, and what I found fascinating was that the two things bankers considered top priorities were “journey thinking” and “leveraging big data.” So FIs understand that they need to support their consumers on these new journeys among all these new channels, and they understand that they can use big data to help them personalize those journeys.

Having said that, a big challenge for FIs is that there is so much more data than ever before. Machine learning, data analytics, artificial intelligence … these are not just buzzwords anymore. They’re really the only tools that are going to enable FIs to break down all that data into useful information that can drive more consumer-focused approaches. I believe it’s most relevant to break things down at the highest level into three key groups: consumers, small- and medium-business owners (SMBs) and staff. So any self-service strategy needs to take into account these three groups, and analyze the data based on how to deliver the best journeys for each segment:

Consumer Journeys

Consumers are used to controlling their own journeys in their digital world. Compiling their financial behavior in digital channels and through the ATM—and applying the right algorithm to the data—can help FIs better anticipate future needs and upcoming life moments, and therefore provide more relevant products and solutions at the appropriate time and place. 

Small- & Medium-Business Journeys

SMBs’ business tends to be cash heavy. They continue to have a strong desire for cash services. In fact, we’ve found that often, SMBs account for about 70% of all cash-in transactions within the branch. Frictionless, cash-based journeys for this segment are important—and when migrated fully to self-service, can help reduce cash-related costs and create a closed-loop recycling environment that moves cash-in money through the system more efficiently. When we polled SMBs about their banking challenges, more than half requested a dedicated teller line for business customers, and nearly half wanted longer branch hours. Both of these needs can be met through today’s connected ATMs. 

Staff Journeys

Today, we focus so much on the consumer, and on improving their experience through data.
Bank staff need the same context when engaging with consumers. So FIs today really must focus on empowering staff with the information and tools they need to support consumers more intelligently. And that comes through more connected channels, so that when a consumer enters the branch and initiates a session with your staff, they have access to real-time information that includes news and updates from digital channels.

I put these three groups all on a level playing field. Typically, I see FIs prioritizing one of these groups over the other two. But in the self-service realm, there are so many unique opportunities for growth among each of these segments, FIs really need to have a strategy in place for each area.

In the consumer segment, for example, banks benefit from deeper loyalty and more lucrative engagements when they’re able to personalize their relationship with consumers through self-service. When it comes to the SMB market, banks can actually get a boost in efficiency by shifting more of those transactions to self-service, where automated transactions cost less than teller transactions, and recycling technology can transform the cash cycle. And for branch staff, I think this one has been a long time coming. The industry knows that when staffers are armed with more data and more up-to-date tools, they can engage much more appropriately with consumers—and the self-service channel opens up new avenues for engagement through assisted self-service.

The bottom line is that the entire world is becoming more connected. Banks should use their incumbent status and vast network of touchpoints to their advantage to drive long-term success. And the right self-service solutions can really help, whether they’re located in the branch or functioning as the branch.

Learn more about Diebold Nixdorf’s new line of self-service solutions, DN Series™, at DieboldNixdorf.com/DNseries.

[1] Global Retail Banking 2018: The Power of Personalization, The Boston Consulting Group

[2] DN proprietary data

[3] The World Branch Report 2019, The Financial Brand

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There is no doubt that technological innovations have changed the payments landscape. Digital payment options have shifted how we pay for many day-to-day purchases, large and small, packing wallets with plastic and smartphones with apps that enable digital payments in person and online.

In such an environment, one might conclude that cash is losing its place in the payments mix. It’s not.

While the rise of digital payments has been steady, from early credit cards to debit cards to app-based mobile options, physical cash remains popular. In fact, a closer look at consumer trends reveals that the competition between physical and digital payment options is not zero-sum; cash and cards can and do coexist.

The state of cash

Over the past few years, the use of cash has not changed significantly in the U.S. In 2018, 81% of respondents reported using cash “as often, or more often, than in 2017,” according to the 2018 Health of Cash report by Cardtronics. The same report found that 28% of respondents listed cash as their preferred payment method, making it the second most popular method, behind debit cards at 37%.

Debit cards may be popular, but the use of cash remains more common. Data from the Federal Reserve’s Diary of Consumer Payment Choice reveals that cash was used in 30% of all transactions in 2017, making it “the most frequently used payment instrument.”

The continued use of cash is also reflected in data on ATM usage. In 2018, six in 10 people (59%) reported withdrawing money from an ATM monthly or more frequently, according to the Mercator Advisory Group’s report ATM Banking: It’s Not Just About Cash Withdrawal Anymore. This rate remains unchanged from a few years ago, as Mercator found that six in 10 people used an ATM at least monthly in 2016, showing that ATM usage remains stable.

Strikingly, even millennials are withdrawing cash at high rates. The same Mercator report found that 53% of people aged 18 to 34 reported at least monthly ATM usage. This age group is also the most willing to pay an ATM surcharge in order to use a convenient machine. Young adults are also more willing to try new features such as alternative authentication methods including the use of biometric data, the report found.  With young people relying on ATMs to withdraw cash at least a few times a month, and displaying an eagerness to embrace new ATM features, cash is clearly alive and well.

But why cash?

Although there are numerous alternatives to paper money, the Cardtronics report found that 73% of consumers still use cash regularly, indicating there’s something about the method that people find attractive.

Part of the explanation is that cash is viewed as a quick payment method.

This becomes apparent when one looks at where cash remains popular. Consumers report that cash is their preferred payment method in both convenience stores and fast food restaurants—two retail segments premised on speedy transactions—according to the Mercator Advisory Group report 2019 Customer Merchant Experience: Offline Shopping is not Dead.

“Consumers often use cash for smaller ticket purchases since they find it to be convenient,” said Peter Reville, director of Primary Research Services at Mercator Advisory Group and author of the report.

Another factor that explains the prevalence of physical wallets is the high volume of shopping within brick-and-mortar stores. In fact, while online shopping has increased in recent years, shopping in physical stores is still the most common channel used, according to the Mercator report.

Since not all stores support digital payment methods—such as Apple Pay or Google Wallet—and not all stores, especially convenience stores, accept card payments for small orders, cash remains a reliable payment method.

People also find cash to be a great way to learn fiscal responsibility. When using a credit card, the amount one spends is more abstract, while with cash, it’s a different story. When consumers pay by cash, the amount they’re spending is more concrete. They often have to count out the amount of money, hand it over to the cashier, and, unless they’ve paid the exact amount, they then receive change back from the cashier. Such a process makes people more aware of their spending habits.

The Cardtronics report noted that 70% of people reported they “waste less money when spending cash,” and 61% of people reported using cash specifically to help them stay on budget. Moreover, slightly under half of people think “cash is the best payment method for teaching financial responsibility.” In addition to being a convenient payment method, cash is also viewed as an educational tool.

Then there’s the fact that the widespread acceptance of cash enables a larger segment of society to participate in the economy. “There is about 6% of the U.S. population that is underbanked and for whom card options are limited,” said Reville. He explained that many local governments are barring merchants from not accepting cash because it may hurt low income individuals who are without alternative payment methods.

Finally, one reason that cash remains so popular is simple inertia: “some people have been using cash for a long time and see no need to change,” explained Reville.

The future of cash: coexistence in payments

Based on its popularity, cash is not going to become obsolete any time soon; people simply like cash too much for it to go away. The Cardtronics report found that 83% of people “would miss cash if it went away altogether,” a testament to paper money’s appeal.

“Cash will continue to be used in the future,” said Reville. “There is a core group of people who value cash over other payment vehicles.”

As a result, the future of payments is one of plurality. According to the Cardtronics report, 92% of people like having the ability to use a variety of payment methods. This is because they want payment choice. The desire for choice stems from the fact that people’s preferred payment method varies based on the circumstances of the transaction.

The value of the transaction, for example, can influence the preferred payment method. People tend to use cards for larger amounts but cash for smaller ones. The channel of the transaction matters, too. People will keep using cards and digital wallets on online purchases, while cash will remain popular for in-store transactions, especially in convenient stores or fast food establishments. And as fears grow over data breaches and personal data being compromised, cash will offer a secure alternative.

Instead of being replaced entirely, cash will continue to complement emerging payment methods. Don’t plan on throwing out your physical wallet any time soon.

The post Cash and Digital Payment Methods Can Coexist appeared first on PaymentsJournal.

MetaBank^®, a wholly-owned subsidiary of Meta Financial Group, Inc.^® (NASDAQ: CASH) (“Meta”) and a leader in delivering innovative payment, financing and banking solutions to partners throughout the country, today announced a three-year extension of its relationship with NationalLink. Meta began working with NationalLink as its ATM sponsor in 2005.

NationalLink is one of the largest independent ATM companies with over 15,000 ATMs serving customers across the U.S. It also has ATMs in Puerto Rico and the U.S. Virgin Islands. Through its ATM sponsorship services, Meta provides NationalLink ATMs with access to national and regional debit networks.

“NationalLink is a leader in the ATM industry, with deep expertise and a wide reach,” said Sheree Thornsberry, Meta EVP and Head of Payments. “We’re thrilled to extend our 13-year relationship with them. We look forward to working together to develop creative financial solutions for their partners and clients.”

“Meta has been an exceptional business partner to us for more than a decade,” said Sam Kandah, NationalLink President and CEO. “They offer the breadth and depth we need in an ATM sponsor partner, and offer a unique combination of relationships and resources that help us succeed in an evolving market.”

Meta is a leader in providing innovative financial solutions to consumers and businesses in under-served niche markets, and believes in financial inclusion for all.

Meta works with high-value niche industries, rapid-growth companies and technology adopters to grow their businesses and build more profitable customer relationships. MetaBank is one of the largest issuers of prepaid cards in the U.S., having issued more than a billion cards in partnership with banks, program managers, payments providers and other businesses, and offers a total payments services solution that includes ACH origination, wire transfers and more.

The post MetaBank® and NationalLink Extend Relationship Through 2021 appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s viewpoint – The Merchant Experience: Offline Shopping Is Not Dead

How are in-store ATMs like Prepaid Card Malls?

• Both in-store ATMs and Prepaid Card Malls boost in-store spend among customers
• In the past 12 months, 37% of consumers have used an in-store ATM
• Supermarkets & grocery stores along with Big Box & Mass Merchandisers are the most popular in-store ATMs
• 34% of in-store ATM users went to the store for the ATM
• 56% of consumers are ‘very likely’ to spend at the store when using ATM
• 41% of consumers report they spend more than they’d planned when using in-store ATM
• 46% of consumers report they visit the store more often when using in-store ATM

About the Report

Mercator Advisory Group’s most recent Insight Summary report, 2019 Customer Merchant Experience: Offline Shopping Is Not Dead, reveals that U.S. consumers shop predominantly offline in physical stores but that mobile phones are an increasingly integral part of the shopping experience. The report is the first of three in the annual Customer Merchant Experience Survey Series, which is part of in Mercator’s Primary Data Service, and presents findings of an online survey of 3,000 U.S. adult consumers conducted in March 2019.

The survey found U.S. consumers currently consider Walmart and Target as providing the best in-store experience. When it comes to the online shopping experience, Amazon tends to dominate consumers’ opinions.

The top attributes consumers said they look for in a retailer are related to quality, availability, payment method, and the security of their data. When they shop in stores, convenience, the ability to physically see the goods, and not having to wait for delivery are the attributes they deem most important. When they shop online, their top ranked attributes are free shipping, the right price, and the freedom of shopping whenever and whenever they want.

The report identifies consumers who fit into three distinct groups based on their personal opinions about technology: Average, “Tech Forward,” and Laggards. Tech Forward consumers are those who are first to use the new technologies and channels to make the shopping experience better.

“U.S. consumers’ expectations of the retail experience are changing. They are using many of the techniques they learned in online shopping in the physical location. The brick-and-mortar establishments need to keep up with the changes and technology and the changes in the way consumers shop,” stated the author of the report, Pete Reville, Director of Primary Data Services including Customer Merchant Experience Survey Series at Mercator Advisory Group.

Companies mentioned in the report include: Amazon, Costco, eBay, Home Depot, Kohls, Macy’s, Target, and Walmart.

The post How Are In-Store ATMs like Prepaid Card Malls? appeared first on PaymentsJournal.

Small business is actually really, really big business in the United States. A whopping 99.9% of all companies in the U.S. have fewer than 500 employees and are classified as small by the U.S. Small Business Administration. Small and medium businesses (SMBs) are the most active and profitable segments in retail banking (see Fig. 1)—and when you own the business relationship, you can likely monetize the personal banking side as well.

In the current environment, servicing the SMB market means grappling with inherent paradoxes.

Financial institutions (FIs) are at a crossroads: in a recent poll we conducted with banks and retailers, 85% of FIs say the merchant segment is a growing focus, but only 28% say their service offerings to merchant clients are sufficient. In the current environment, the bulk of interactions with the SMB segment are transactional in nature, and often the bank isn’t interacting directly with the business owner but rather a staff member who doesn’t have an ownership stake in the business itself.

These transactional interactions are labor-intensive, cash heavy and often occur during a branch’s busiest times. Then there’s the management and reconciliation of after-hour deposits, which can be costly and time-consuming. But the biggest challenge in serving this critical segment may be the paradoxical ways they view their relationship with their bank:

• Getting in and out of the branch quickly is paramount as time is money for sole proprietors and SMBs with just a few employees … yet they value the connection and personal touch of engaging directly with someone at the bank who knows them and knows their business history.
• Three out of four merchants we polled say they would like to use automated or self-service technology to conduct business withdrawals and deposits … yet more than half say that if they were forced to use self-service instead of a teller, they would consider switching banks.

The evolution of banking is happening, but FIs must address the problem of inertia.

Until recently, self-service solutions often couldn’t provide the level of support SMBs need. Deposit bundle acceptance and withdrawal limits were designed for the average consumer, not a business professional with large daily cash-in and cash-out requirements. The after-hours deposit process left SMBs waiting hours or days for reconciliation and funds availability. And retailers were faced with the prospect of leaving their business (and forgoing sales) to run to the bank, or sending staffers out to make deposits, collect floats and change and break large bills.

Yet retailers and FIs both express a desire to use automation where it makes sense (see Fig. 2).

Modern self-service has evolved to accommodate SMBs’ distinctive needs. Our new line of self-service systems, DN Series™, enables larger, envelope-free cash and check deposits, more flexibility in denomination choice and immediate funds availability. Paired with new mobility and cardless access solutions, retailers even have the option to administer a one-time PIN or QR code that staffers can use with their own mobile devices (and not limited function “deposit only” merchant cards) to conduct transactions, ensuring greater security when business owners can’t get to the bank themselves. And they can do it all when they want, without the limits of bankers’ hours.

Define the journey, then educate SMBs to choose the new path.

One of the first steps we take in the branch is working with FIs to develop a playbook that includes lobby management, self-service education for staff and consumers, and specific action items for employees. Lobby leadership and consumer education are crucial to the success of new self-service implementations.

The cash cove on DN Series, for example, is the enabler for much larger bundles, but consumers don’t necessarily intuit the reason for the change. The right concierge or lobby manager can recognize an SMB as they enter the branch, direct them to a self-service terminal and describe the benefits of new features like the cash cove, cardless access, etc. Branch staff can also point out the features that are especially beneficial to an SMB, including e-receipts that make tracking cash much easier and streamlined, and electronic pre-staged transactions that are more secure, traceable, reconcilable and allow for instant account credit of cash deposits.

Remember, your goal may not be to migrate ALL your business transactions to self-service; depending on your branch environment, it may just migrate long lines at the teller to long lines at the ATM. But in a world where nearly a quarter of SMBs we polled say they engage with a branch teller daily, it’s only common sense to offer these key customers more options that fit their needs. Plus, educating and empowering SMBs to bank the way they choose can help deepen their relationship with your brand, while enabling you to repurpose staff to conduct higher-value transactions and focus on advisory conversations.

Learn more about Diebold Nixdorf’s revolutionary new line of self-service systems at DieboldNixdorf.com/DNseries.

Fig. 1

SMBs are Frequent (Financial) Fliers

Your small-business customers are using your services constantly. Consider how many of them use each of your channels at least twice per week:

Branch Teller: 55%

Night Deposit: 58%

ATM: 59%

Bank Debit Card: 72%

Web Banking: 73%

Mobile Banking: 73%

Source: DN U.S. Merchant Automation Survey, 2019

Fig. 2

Self-Service Can Fill the Gaps for FIs & Retailers

When we asked FIs what services they felt they could provide to better serve their merchant clientele, their top two answers revolved around self-service:

Better self-service technology: 37%

Better hours to service customers: 36%

Likewise, retailers’ top two concerns could be alleviated through self-service use:

Too much time spent waiting in teller line: 54%

Long delay between deposit and access to funds: 38%

Source: DN U.S. Merchant Automation Survey, 2019

About the Author

James Flannery, Global Advisory – Banking Channel Transformation

Jim Flannery is a Senior Manager for Diebold Nixdorf’s global advisory services business.  Jim is responsible for the database management and development activities within DN’s advisory services practice. This includes functions related to the collection, processing, and data modeling – as well as the integration of the analysis into new products and services.  Jim is an expert with customer profiling and segmentation, channel profiling, and location based channel optimization.

In his 19 years with Diebold Nixdorf, Mr. Flannery has participated in hundreds of customer engagements specializing in customer analysis, consumer research, delivery channel usage, behavior analysis and location planning.  Jim has extensive international experience working with Bank’s customer data in all parts of the globe.  Prior to joining Diebold Nixdorf Jim has worked in advertising and has held various positions with SoftBank Services Group and ClientLogic

Flannery completed a BS degree in Management Information System from Canisius College in Buffalo, NY.

The post The Key Segment to Nurture in 2020 and Beyond appeared first on PaymentsJournal.

This article in BankInfo Security is a fascinating digest of criminal financial crimes from enrolling stolen cards into Apple Pay to ATM hacking that includes blowing the ATM up. It includes pictures of card skimmers with instructions and links to a video of an ATM being blown up with gas:

“Fraudsters continue to get new tricks up their sleeves. Criminals are increasingly using Apple Pay, setting up mobile call centers to socially engineer victims as well as tricking consumers via look-alike but fake e-commerce sites that never fulfill orders, warns the European Association for Secure Transactions, based on reports from European countries as well as Ukraine and Russia.

See Also: Webinar | The Future of Adaptive Authentication in Financial Services

On June 5, representatives from 16 countries in the Single Euro Payments Area, as well as four other countries, attended an EAST meeting held at Europol headquarters in the Hague, Netherlands. Here’s a sample of the most recent fraud trends they’re seeing:

• Apple Pay mobile wallet fraud: Two countries reported cases of such fraud. “One reported that mobile wallets are fast becoming the new money mules – fraudsters are enrolling cards that are not yet associated to a specific wallet,” EAST reports. “Another country reported that fraudsters are obtaining security codes through phishing, with which they can then install a mobile banking app on their own smartphone, using the victim’s data.”
• Mobile call centers: One country told EAST that to trick users into divulging personal details or account information, fraudsters are calling consumers from call centers that appear to have genuine bank customer service telephone numbers and pretending to be legitimate bank staff.
• Fake websites: Sites in China and other Asian countries, in particular, are increasingly advertising goods for sale, but never fulfilling orders. “One country reported that the quality of fake websites and fake emails is constantly improving, with fewer language errors and better design and formatting,” EAST says.
• Card skimming: Skimming attacks were reported by 18 of the 22 countries, with five recovering M3 card reader internal skimming devices, the most recent versions of which are built from transparent plastic to make them tougher to detect. Six countries also reported skimming attacks that targeted devices other than ATMs, including railway ticket machines. Overall, EAST notes that skimming attacks are more common outside Europe, with the most losses occurring in Indonesia, India and the United States.
• Cash and card trapping: Attackers can also alter machines to trap cash or payment cards. Eight countries reported seeing cash-trapping attacks, although two said the incidence of such attacks has decreased. Five countries reported seeing card-trapping attacks, with two reporting that such attacks have been increasing.
• Physical attacks: 10 countries reported ram raids and ATM burglary attempts; nine countries reported explosive gas attacks, with four countries noting that the frequency of such attacks has been increasing; and seven countries saw solid explosive attacks, with two countries saying they’d been increasing. One country also reported seeing a solid explosive attack committed by “criminals armed with assault rifles,” EAST reports. “The spread of such attacks is of great concern to the industry due to the risk to life and to the significant amount of collateral damage to equipment and buildings” (see: Attackers ‘Hack’ ATM Security with Explosives).
• ATM malware and logical attacks: Six countries report seeing the use of “black box” devices to try and force ATMs into dispensing cash without authorization, in what’s known as a jackpotting attack. “In most cases the attacks were unsuccessful,” EAST says.

The countries that contributed information to the latest EAST fraud report were Austria, Czech Republic, Finland, France, Germany, Ireland, Italy, Liechtenstein, Luxembourg, Netherlands, Portugal, Romania, Russia, Serbia, South Africa, Spain, Sweden, Switzerland, Ukraine and the United Kingdom.”

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

The post Reporting on Mobile, e-Commerce, and ATM Criminal Activity appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – ATM Banking: It’s Not Just About Cash Withdrawal Anymore.

• Nearly one-third (31%) of US adults age 65+ “never” use an ATM to withdraw cash
• Only 4% of 18-34 year olds report they “never” use an ATM to withdraw cash
• Same goes for other ATM activities like depositing cash/checks, checking balances, etc
• Over half (54%) of US adults age 65+ “never” use an ATM for activities beyond cash withdrawal
• Only 16% of 18-34 year olds report they “never” use other ATM activities beyond withdrawal
• Besides age, the other big demographic indicator for heavy ATM use is employment:
• 58% of heavy ATM users are employed full time

About the report

Mercator Advisory Group’s most recent Insight Summary Report, ATM Banking: It’s Not Just About Cash Withdrawal Anymore, reveals that U.S. customers are increasingly relying on ATMs to fulfill their banking needs. The report is from the Banking and Channels Survey in the bi-annual CustomerMonitor Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s CustomerMonitor Survey Series online survey of 3,000 U.S. adult consumers in November 2018.

The post There’s a Huge Age Gap in ATM Use: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – ATM Banking: It’s Not Just About Cash Withdrawal Anymore.

• Has consumers’ use of cash increased or decreased over the past 12 months?
• Trick Question! Over the last 12 months:
  • 15% of consumers report using more cash
  • 15% of consumers report using less cash
  • 70% of consumers report ‘stayed the same’
• Check use has declined slightly:
  • 9% report more check
  • 22% report less checks
  • 69% report the same level
• Consumers who withdraw cash at an ATM do so an average of 43 times a year.
• Consumers performed other ATM activity (beside withdrawal) 36 times a year.
• Light ATM users are much less likely to use an in-store ATM (26%) than heavy ATM users (42%).
• Young consumers (age 18-34) are more likely to use in-store ATMs (41%) than 35-64 year olds (27%) or older consumers (18%).

About this report

Mercator Advisory Group’s most recent Insight Summary Report, ATM Banking: It’s Not Just About Cash Withdrawal Anymore, reveals that U.S. customers are increasingly relying on ATMs to fulfill their banking needs. The report is from the Banking and Channels Survey in the bi-annual CustomerMonitor Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s CustomerMonitor Survey Series online survey of 3,000 U.S. adult consumers in November 2018.

The post Has Consumers’ Use of Cash Increased or Decreased over the Last 12 Months? appeared first on PaymentsJournal.

Diebold Nixdorf (NYSE: DBD), a global leader in driving connected commerce for the banking and retail industries, today unveiled the DN Series^TM, a family of self-service solutions designed to anticipate the needs of a progressively transforming industry.

Leading global banking brands, including BNL Gruppo BNP Paribas, are among the 18 financial institutions in 13 countries already piloting the DN Series. This holistic, digitally-connected line of ATM solutions is built upon a software and services-driven model and provides a modern and personalized experience for consumers, while delivering maximum efficiency and simplicity for financial institutions.

A recent study from industry research firm RBR shows the durability of the ATM channel in an increasingly diverse payments environment. “The self-service channel continues to play a crucial role in financial institutions’ long-term strategies,” said Dominic Hirsch, managing director, RBR. “With 96 billion cash withdrawals made at ATMs last year at a value of $13 trillion, our data indicates that ATMs will remain a vital banking channel for the foreseeable future.”

The DN Series further extends Diebold Nixdorf’s position as market leader by enabling multiple capabilities that benefit consumers and support financial institutions’ efforts to transform their branch environment:

• Powered by DN AllConnect Services^SM, the DN Series provides seamless connectivity by leveraging IoT technology with big data and machine learning to drive improved availability and performance.
• Integrating the DN Vynamic^TM software suite, the DN Series can interface with mobile devices and perform modular field upgrades to more digital-native features, such as NFC and biometrics, setting it apart from competitors. This is especially relevant as the ATM channel has become one of the most heavily used digital channels.
• The DN Series offers the most reliable cash and media engines with the highest note capacity and smallest footprint in the industry, enabling unmatched cash management capabilities driven by Diebold Nixdorf’s proprietary recycling technology.
• Introducing advanced design and software, the DN Series improves security through premium anti-skimming options, encrypted communication protocols and rapid response services – helping ensure that people, data, assets and brands are protected.

At its core, the DN Series represents Diebold Nixdorf’s comprehensive transformation strategy, DN Now, to further leverage the company’s global scale, promote operational simplicity and ensure consumer centricity. This streamlined solutions portfolio also provides a simplified investment for customers via an optimized supply chain and reduced servicing complexity.

Maurizio Lupo, head of Innovation, Change Management and Network Transformation, at BNL said: “We’re very committed to the innovation. Rising competition and consumers’ evolution are just a few of the challenges we’re focused on and that we’re managing on a daily basis. Diebold Nixdorf’s commitment to solving for these headwinds with the DN Series makes them a trusted advisor and partner to help us move the needle for our continued transformation and global impact.”

Gerrard Schmid, president and chief executive officer at Diebold Nixdorf said: “The DN Series elevates the performance of the self-service channel, fully realizes the promise of our technology and serves as a critical component of our roadmap as we work to shape the future of our industry. This next generation of financial self-service is the result of deep discovery of consumer needs and industry demands and exemplifies the integrated delivery model so essential in our industry today.”

Learn more about the DN Series and view additional multimedia.

The post Diebold Nixdorf Unveils Next-Generation Banking Solutions Built for the Transforming Financial Services Industry appeared first on PaymentsJournal.

Today, Consumers use cash in 77% of all transactions worldwide[1], and growth rates of cash in circulation are predicted to continue. Developing countries in Asia and Latin America have extremely high cash usage, with upwards of 90% of transactions being conducted in cash in some regions. In fact, even banked populations in those developing countries tend to voluntarily choose to convert digital forms of money into cash as quickly as possible. Across the globe, cash is still the leading payment method at point of sale[2].

The bottom line is that cash is a mainstay as a form of payment across the globe.

The ATM remains the only channel that provides cash access anytime, anywhere, at a lower cost—and it’s increasingly mobile-friendly, API-integrated and capable of facilitating the movement of cash between the physical and digital worlds. Your self-service strategy should therefore be focused on maximizing the channel to take advantage of its huge potential. 

Old-School Strategy No. 1: Position ATMs as Secondary to the Branch

What to Do Instead: Position ATMs “as the Branch” by Automating All Cash Processes

FIs are constantly pressured to optimize the cost of their physical footprints. Branch size and location, placement of ATMs, where to open and where to close locations all impact the business model.

Self-service is a key asset FIs have in their strategy to achieve a “right-sizing” approach as the branch model evolves.

ATMs enable transaction migration, extend transaction sets for consumers and automate cash processes, making them an integral tool “in the branch.” However, the modern ATM goes beyond this function and can now act “as the branch,” with FIs using this physical asset as an extension of their distribution strategy; as a market entry position to introduce the brand and provide flexible access to financial services and cash without building a full branch, as an extension to services offered in a branch outside of normal branch hours, or, as a leave-behind strategy for markets and locations where branches are no longer viable.

Strategically, the ATM is a vital tool for enhancing brand perception, providing access to financial services and extending the digital capabilities of a financial institution by bridging the physical and digital worlds.

Old-School Strategy No. 2: Focus on Scale and Accessibility

What to do Instead: Focus on Seamless Journeys

As FIs have built their fleet network over the decades, the focus has been on providing easy access to banking touchpoints. A modern self-service strategy must go beyond simply providing access—it should offer a tailored, targeted experience that differentiates between various consumers.

This “journey thinking,” along with leveraging Big Data, has been identified as a top priority by FIs around the globe.

Researchers paint a similar picture: in the latest Retail Banking Trend Report, the same two topics where ranked first and second. Interestingly in 2018, Journey thinking was No. 1 and in 2019 Big Data has top priority.

Self-service is a critical touchpoint in various journeys: 

Consumer journeys

• Consumers are used to controlling their own journeys in their digital world today; leveraging apps on the mobile device and engaging with a variety of providers.
• Enhancing and managing consumers’ end-to-end journeys are key to FIs remaining relevant in the eyes of the consumer.
• Banks must remove challenges and friction along every step of the journey, and anticipate consumers’ needs by “knowing,” “showing” and “wowing” them at each stage. 

Small & Medium Business Journeys

• SMBs are an important client base for FIs—in many cases, their business is still extremely cash heavy and they have a strong desire for cash services.
• In many countries SMBs account for about 70% of all cash-in transactions within the branch.
• Frictionless cash-based journeys for this segment are important, and, when migrated fully to self-service, can help reduce cash-related costs and create a closed-loop recycling environment that moves cash-in money through the system more efficiently. 

Staff Journeys:

• Today, focus is often on the consumer and on improving their experience through data.
• Bank staff need the same context when engaging with consumers.
• The transformation and improvement of staff journeys goes hand-in-hand with improving consumer journeys: When it’s easier for a staff member to serve a customer, everyone’s experience is better. 

Old-School Strategy No. 3: When it Comes to CIT, Just “Set it and Forget it”

What to do Instead: Carefully Evaluate Areas Where the Cash Cycle Can be Optimized

The prevalence of cash begs the question, if cash is so heavily used across the majority of the world, how effectively are consumers able to connect and access their money? Ironically, the cost per cash transaction increases when the total number of cash transactions decrease. The handling of cash holds multiple costs including transport, handling and interest charges on ‘inactive’ cash. Cash handling therefore remains costly if not managed correctly. Modern, data-driven approaches to cash management can dramatically transform the cost to operate a fleet.

The world has changed—and so has self-service. Modern ATM fleets can be a valuable component of an FI’s digital strategy, as long as the right pieces are in place to enable such a modern experience. DN Series™ ATMs from Diebold Nixdorf were designed to meet the needs of today’s consumers and prepare FIs for the future of connected commerce. From advanced security features to optional recycling capabilities, integrated software and AI-driven service, discover why FIs around the world are using DN Series to offer their consumers an unsurpassed experience every time, everywhere.

Learn more at DieboldNixdorf.com/DNseries.

About the Author

Jerome Amara VP  Systems banking, EurAsia

Started with Diebold Nixdorf in 2000. Previously, from 2014, Jerome had been Vice President Systems for Europe, Middle East and Africa. Jerome has held various senior positions in Sales, Business development and portfolio management in EMEA and Asia Pacific. Prior to his return to Europe in 2016, he served as Vice President Sales, Asia Pacific from 2014-2016 and Vice President Sales and Marketing & MD South East Asia from 2013 till 2014.

[1] “Global payments: Expansive growth, targeted opportunities,” McKinsey, 2018

[2] “Global Payments Report,” Worldpay, 2018

The post Three Old-School Self-Service Strategies to Give Up—and What to Do Instead appeared first on PaymentsJournal.

Russia did it with Mir Card, to counteract U.S. sanctions. Union Pay did it in spades with their domestic payment scheme.  India did it with RuPay, and drove cash reduction by tightening the flow of rupees. Brazil did it with Elo because the market wants its own brand. Portugal introduced MultiBanco, as Nigeria rolled out Quckteller.

Now, comes Sri Lanka.

First, let’s put Sri Lanka in context.  You will find Sri Lanka past the southeast tip of India surrounded by the Indian Ocean, the Bay of Bengal and the Gulf of Manmar, an island first inhabited in 6th century B.C. The Portuguese owned it in the 16^th century, then the Dutch, followed by the British in 1800. After WWII, it became independent, and known as Ceylon, a name it retained until 1972.

22 million residents occupy this country, the size of the state of West Virginia, and with a labor force of 9 million, unemployment on the island is only 4%.  Here’s the kicker: cellphone distribution per 100 inhabitants is 126, meaning every citizen own 1.26 cell phones.  That is notable because only 12% of the people have landlines.

32% of the population have debit cards, only 5% have credit cards.

Lanka Business Online reports today that the Central Bank of Sri Lanka is launching their own national payment scheme. The card is not affiliated with Mastercard or Visa.  Instead, it is a product enabled by JCB.

• The Central Bank of Sri Lanka together with LankaClear (LCPL) achieved a significant milestone in the country’s payment landscape by launching the National Card Scheme (NCS).
• The Central Bank said in a statement that the NCS will be operated by LCPL in partnership with the international payment card operator JCB International of Japan.
• Initially, a debit card will be issued under this card scheme. Additionally, the NCS cards will be accepted across over 4,800 ATMs Islandwide connected to LankaPay network to facilitate cash withdrawals.
• As the second phase of the NCS, the “LankaPay 2in1” card will be introduced. This will be a chip based NFC card – with additional stored value functionality for retail payments including public transport. Further, it is expected to issue a credit card as well as support e-commerce transactions under the NCS initiative.
• Expressing his views at the launch, Dr. Indrajit Coomaraswamy, the Governor of the Central Bank stated that “this is indeed a momentous occasion for Sri Lanka as the country launches its national card scheme, meeting international standards which will bring immense benefits to Sri Lankan consumers due to its lower cost that enables financial inclusion.”

Domestic payment schemes can bring a level of disintermediation to the payment brands.  Discover Global Networks has done substantial work in arranging bilateral credit card arrangements, so there is every reason to think that your LankaPay card will function soon enough in Chicago, and vice versa.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

The post Yet Another Domestic Payment Scheme Hits the Market appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – ATM Banking: It’s Not Just About Cash Withdrawal Anymore.

• There appears to be a moderate interest in new types of ATMs with increased functionality
• When asked: ATMs can be equipped to handle many types of transactions. How interested would you be in using an ATM for the following tasks? Below are the common responses:
• Withdraw cash in more specific denominations with 59% of respondents
• Increase your daily limit for cash withdrawal with 38% of respondents
• Receiving special retail offers with 37% of respondents

About this report

Mercator Advisory Group’s most recent Insight Summary Report, ATM Banking: It’s Not Just About Cash Withdrawal Anymore, reveals that U.S. customers are increasingly relying on ATMs to fulfill their banking needs. The report is from the Banking and Channels Survey in the bi-annual CustomerMonitor Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s CustomerMonitor Survey Series online survey of 3,000 U.S. adult consumers in November 2018.

Among many insights uncovered, the survey found consumers are more than four times as likely to use their own bank’s ATM (94%) as other banks’ ATMs (22%) or ATMs than are not bank branded (19%). Furthermore, heavy users of ATMs are less dedicated to their own bank’s ATM and more apt to use ATMs that do not belong to their bank. The same is true of younger consumers, reflecting their strong presence among the heavy users of ATMs.

The survey also found that consumers are more likely to choose going to a teller when depositing higher-denomination checks (e.g., $1,000) than to deposit them in an ATM. Checks of smaller denomination (e.g., $50) are more apt to be deposited via an ATM. Additionally, the report shows that 14% of Americans say they will not withdraw cash at an ATM and 31% will not conduct any other type of transaction at an ATM.

“There is an opportunity for financial institutions to deepen their relationship with their customers by expanding the capabilities of their ATMs. Younger consumers rely more on ATMs and use more of their features. As such, this group should be kept in mind during any discussions of or planning for new functionality,” stated the author of the report, Peter Reville, Director of Primary Data Services at Mercator Advisory Group including the CustomerMonitor Survey Series.

The post What You Need to Know about ATM Usage PT. 3 appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – ATM Banking: It’s Not Just About Cash Withdrawal Anymore. Watch part 1 of “What You Need to Know About ATM Usage” here.

• Consumers are more than four times as likely to use their own bank’s ATMs (94%) than other banks’ ATMs (22%) or ATMs that are not bank branded (19%).
• Age also impacts ATM use for withdrawing cash. Nearly one-third (31%) of those aged 65+ “never” use an ATM to withdraw cash, compared to 4% of 18- to 34-year-olds. These results are similar for ATM activities other than getting cash.
• About 4 in 10 (43%) report that they have asked for cash back when shopping in the past six months.
• Among those people who have asked for cash back while shopping, when given the choice of cash back or ATM, preference for cash back (41%) is slightly higher than preference for withdrawing cash at an ATM (34%). Another one-quarter have no preference.

About this report

Mercator Advisory Group’s most recent Insight Summary Report, ATM Banking: It’s Not Just About Cash Withdrawal Anymore, reveals that U.S. customers are increasingly relying on ATMs to fulfill their banking needs. The report is from the Banking and Channels Survey in the bi-annual CustomerMonitor Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s CustomerMonitor Survey Series online survey of 3,000 U.S. adult consumers in November 2018.

Among many insights uncovered, the survey found consumers are more than four times as likely to use their own bank’s ATM (94%) as other banks’ ATMs (22%) or ATMs than are not bank branded (19%). Furthermore, heavy users of ATMs are less dedicated to their own bank’s ATM and more apt to use ATMs that do not belong to their bank. The same is true of younger consumers, reflecting their strong presence among the heavy users of ATMs.

The survey also found that consumers are more likely to choose going to a teller when depositing higher-denomination checks (e.g., $1,000) than to deposit them in an ATM. Checks of smaller denomination (e.g., $50) are more apt to be deposited via an ATM. Additionally, the report shows that 14% of Americans say they will not withdraw cash at an ATM and 31% will not conduct any other type of transaction at an ATM.

“There is an opportunity for financial institutions to deepen their relationship with their customers by expanding the capabilities of their ATMs. Younger consumers rely more on ATMs and use more of their features. As such, this group should be kept in mind during any discussions of or planning for new functionality,” stated the author of the report, Peter Reville, Director of Primary Data Services at Mercator Advisory Group including the CustomerMonitor Survey Series.

The post What You Need to Know About ATM Usage PT.2 appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for today’s episode is provided by Mercator Advisory Group’s report – ATM Banking: It’s Not Just About Cash Withdrawal Anymore.

• Consumers report that their use of cash and checks is essentially unchanged over the past 12 months (about 70% unchanged for both). About one-third of Americans (31%) use the ATM for cash withdrawal only.
• Six in 10 (59%) withdraw cash from an ATM monthly or more. Only one-quarter (26%) use ATMs for anything else monthly or more.
• Among those who ask for cash back when shopping, many prefer that method to obtain cash to going to an ATM, while one-quarter have no preference.
• The size of the deposit has an impact on the method people would choose to deposit a check. A higher-value check is more likely to be deposited in person.
• Consumers who shy away from depositing checks or cash at ATMs prefer the personal touch of teller deposit and distrust ATMs.

About this report

Mercator Advisory Group’s most recent Insight Summary Report, ATM Banking: It’s Not Just About Cash Withdrawal Anymore, reveals that U.S. customers are increasingly relying on ATMs to fulfill their banking needs. The report is from the Banking and Channels Survey in the bi-annual CustomerMonitor Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s CustomerMonitor Survey Series online survey of 3,000 U.S. adult consumers in November 2018.

Among many insights uncovered, the survey found consumers are more than four times as likely to use their own bank’s ATM (94%) as other banks’ ATMs (22%) or ATMs than are not bank branded (19%). Furthermore, heavy users of ATMs are less dedicated to their own bank’s ATM and more apt to use ATMs that do not belong to their bank. The same is true of younger consumers, reflecting their strong presence among the heavy users of ATMs.

The survey also found that consumers are more likely to choose going to a teller when depositing higher-denomination checks (e.g., $1,000) than to deposit them in an ATM. Checks of smaller denomination (e.g., $50) are more apt to be deposited via an ATM. Additionally, the report shows that 14% of Americans say they will not withdraw cash at an ATM and 31% will not conduct any other type of transaction at an ATM.

“There is an opportunity for financial institutions to deepen their relationship with their customers by expanding the capabilities of their ATMs. Younger consumers rely more on ATMs and use more of their features. As such, this group should be kept in mind during any discussions of or planning for new functionality,” stated the author of the report, Peter Reville, Director of Primary Data Services at Mercator Advisory Group including the CustomerMonitor Survey Series.

The post What You Need to Know about ATM Usage appeared first on PaymentsJournal.

There’s more than one way for financial institutions to scale, and digital innovations are often a critical component of a winning formula, whether the goal is to achieve ubiquity or simply to dominate in the bank’s home market.

But growing into the future may first require FIs to look into the past. Even the most innovative digital channels and strategies still rely on ATMs because cash and cash access remain desirable – in some cases, even necessary – for many consumers.

And it’s not just about dispensing cash: increasingly, consumers want their ATMs to do more so they can go to the bank branch less and less. This desire spells opportunity for FIs.

It’s in that context that Brad Nolan, EVP Allpoint solutions at Cardtronics, and Sarah Grotta, director of debit and alternative products advisory service at Mercator, joined forces on a recent Mercator webinar to discuss how FIs can leverage retail ATM networks to reshape deposit strategies, thus driving ATMs into their next iteration.

The power of cash

Some payments professionals and visionaries talk about eradicating cash, but Grotta says that’s a “fruitless” strategy.

“In the U.S.,” Grotta said, “ATMs are a critical banking channel, and cash remains a critical payment type. As new payment methods and types are added, banks and merchants must also continue to support the old ones.”

Look no further than Amazon Go, a brick-and-mortar store built on the very concept of the death of cash – now announcing that its stores will be accepting good old paper and pennies.

Cash is favored on a situational basis, Nolan said. People like it for small transactions. They like it because it’s convenient, frictionless, safe, private, and accepted everywhere. They like it (or at least, millennials do) because physical dollar bills are easier to budget.

Consumers have made their affinity for cash very clear, and cities like Philadelphia – even entire states, like Massachusetts – are now mandating that merchants must accept cash.

Convenience

Mobile and online banking, NFC, and digital payments are often viewed as more convenient than cash, but in reality, that is not the case across the board. There are boxes that these fast and techy new solutions simply do not check. For example, they are typically not available to the unbanked.

Not being able to pay for anything is decidedly not convenient.

There was a time when consumers banked with the FI that had a branch around the corner, but location is becoming less relevant and the meaning of convenience has changed. At the end of the day, no matter how many boxes new payment options check off, consumers still want payment choice. That is the new convenience. Digital is part of that choice, but only part.

That means access to cash is core to banking, Nolan said, while research from Novantas showed that “branch near me” – once the ultimate mark of banking convenience – has dropped to priority number three and falling among those polled. Mobile and online functions now rank first, while access to surcharge-free ATMs comes in second.

Creating cash access is good for the bottom line

Nolan points out that consumers like variety but still use cash regularly, despite having more options. That means that providing access to cash delivers free value for issuers.

A recent case study with Novantas clearly showed the power of combining a surcharge-free ATM network like Cardtronics’ Allpoint and a branding partner to create cash access and thus bolster customer attraction, engagement and retention.

In terms of growth and experience, Cardtronics and Novantas found that a large surcharge-free network provides marketing value that attracts new customers to a bank, while multi-channel engagement drove higher retention and stickier balances.

In terms of efficiency, they found that, perhaps unsurprisingly, more customers transacted with off-premise ATMs when the option was available. This moved those customers off the bank’s teller line and saved the bank money. FIs saw 7.3 percent fewer teller transactions and 11.5 percent fewer teller FTEs when banks leveraged the large, surcharge-free Allpoint network. That’s significant because tellers can cost banks $200,000 to $350,000 per branch, per year.

It means the convenience of cash access isn’t just a win for the consumer, but for the FI as well, and for the retailer as a driver of foot traffic.

The future of ATMs

Banks can’t ignore that consumers want and need cash. With ATM volumes expected to rise over the next four to five years, here’s what Nolan and Grotta say FIs need to be thinking about.

1. Deposits are peeling off the teller line and into ATM channels. Consumers are looking to deposit cash at ATMs, not just checks – many can do that already on their mobile devices. The ability to accept cash and checks will be advantageous for FIs and would unlock new capabilities such as bill pay and check cashing, which could potentially catalyze much-needed branch transformation and help level the playing field.
2. A simple cash-dispense ATM can help banks maintain a presence in markets where a branch is no longer viable, but it doesn’t fill the void left by an uprooted bank. To continue to serve cardholders effectively as the branch footprint shrinks, ATM deposit functionality is key with advanced function deposit ATMs offering many of the same services performed at the teller line.
3. At the same time, an ATM can suffice in markets where a branch would fail. And where an ATM might fail, digital services may still be of value to consumers. Banks used to feel that they needed to provide the same experience and brand feel at every branch. They are now realizing that differentiation is okay; platform and model should be determined based on market needs.

What these three points have in common, is that they demonstrate banks no longer have to play by legacy rules to succeed – indeed, if they hope to win, they can’t.

For example, by going digital/cardless, future ATMs could create cash access for customers who don’t carry a debit card or find themselves in an emergency situation without their card but still need money. Applications like the one that allows Allpoint users to query ATMs from their phones, then walk up to retrieve their money, will become more widespread, as will acceptance of these new technologies and experiences.

Banks, notes Nolan, are looking to expand into new regions for the first time in years, even decades. And they’ve been talking about “branch transformation” for just as long. The ATM lets FIs expand and optimize at the same time, while freeing them from the constraints of building identical branches across heterogeneous markets.

Whatever is coming, cash access is sure to play a critical role in the transformation. As banks get their feet under them in this new, hybrid, cash-and-digital world, it’s not just about closing branches in favor of mobile solutions or ATMs – it’s about changing behavior within them.

The post ATMs: From Cash Dispenser to True Automated Teller appeared first on PaymentsJournal.

It’s been nearly a decade since the Consumer Financial Protection Bureau amended Regulation E and rolled out the rule that limits the ability for financial institutions to assess overdraft fees for ATM and one-time debit card transactions that overdraw consumers’ accounts. As Credit Union Times reported, this means that it’s time for the CFPB to review the rule and determine its effectiveness. After its review, the CFPB can:

• Allow the rule to stand as is with no changes
• Rescinded the rule altogether, or
• Change the rule

This rule requires consumers to opt-in before and overdraft can occur and related fees charged:

If a consumer attempts a one-time debit card transaction or an ATM withdrawal, the financial institution either authorizes or declines the transaction within seconds of the consumer’s request,” the bureau said, in explaining the rule. A declined transaction does not result in a fee. If the transaction is authorized, the financial institution will later settle the transaction, which might occur on the same day, or as long as three business days later. 

In 2018, the bureau received about ten comments on the overdraft rule when the agency requested comment on all its rules. 

The bureau also announced that it will begin the review of its rules under the Regulatory Flexibility Act to determine their impact on small entities.

The Bureau intends to commence the review roughly nine years after each rule’s publication. 

The bureau is taking comments on the rule as a part of its review. You can find the request for comment here if you would like to make some suggestions.

Overview Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

The post Time Flies: 9 Years of the CFPB’s Consumer Overdraft Rule appeared first on PaymentsJournal.

Cardtronics (CATM) manages or owns about 227,000 ATMs, the only pure-play public company in this business. Although ATMs can and do expand their functionality, they are still primarily cash dispensers. If we all believe cash is dying, why is Cardtronics still a good investment?

In a sense, ATMs do not compete with the rapid growth of noncash payments. An ATM transaction is not a payment at all. It is a value mode transference: from paper to centralized record keeping (i.e., the computerized back office) or – more commonly – vice versa.

Why is it called automated teller? Going back in time, tellers were the ones who told the bank customer how much he or she had just deposited, how much the account contained, or how much they could withdraw. They could tell how much loan payment was due or how much interest might have been earned. And they gave paper documentation once the transaction was complete. They were low level; how much a customer could borrow was an officer function and tellers weren’t officers.

Fast forward 100 years. The telling function is now totally electronic. No ATMs are needed for that – although people still use them for that purpose. Put simply, ATMs exist to convert paper to electronics and vice versa. The paper can be a check or cash, it doesn’t matter. If we didn’t live in a long-term twilight era halfway between an all-paper world and an all-electronic world, we wouldn’t have ATMs.

But the fact is we do. Negotiable currency that’s been a mainstay of life for centuries doesn’t die out in just a few decades. People still use it and carry it. The highly banked in the U.S. still get nervous without a single dollar bill in their wallet/purse even if they use a credit or debit card for everything. On the other end of the income spectrum, citizens in underdeveloped rural countries (half the world) use currency as a standard, even if transferring funds from their prepaid mobile balances is growing like wildfire.

Even in the U.S., more currency is in circulation every year. Ditto for euros in the E.U. However, it is not true that more ATMs are in operation every year. The global herd seems to have peaked at about 3.3 million depending on which source you follow. This makes sense. Global population is rising, and so is the share of that population with higher incomes. Global payment transaction volumes are rising even faster than the population, but noncash payments are skyrocketing. Electrons are very, very cheap and eliminating paper from the payment mix leads the emergence of all sorts of new capabilities.

The rate of decline of the global ATM installed base is likely to be very slow. It may even be stagnant for some years – maybe only ATMs per capita will be declining. If ATM volumes are the same, somewhat lower, or even slightly higher in 2029, that would not surprise me. If they were half of today’s number, that would surprise me.

One does not get the feeling that Cardtronics success strategy is based on growth in the number of ATMs. In fact, its average number of transacting ATMs declined by 0.6% in the past 12 months. Of course, the number the company owns or manage may grow through acquisitions or taking over others’ networks. its owned and managed share of installed ATMs is roughly 6–7% globally and about 50% in the U.S., where 60% of its business is.

Of course, there is much more to thinking about ATMs than just how many. For example, cost. If they got a lot cheaper to build, maybe there could be more. If new functions were added, maybe the transaction volumes would grow. Cardtronics’ ATMs average about 25 withdrawals per day, which leaves a lot of unused capacity. The inner-city experience of high-traffic waiting line ATMs generally belongs to the big banks. From Cardtronics’ point of view, higher transaction volumes have high marginal benefits because, basically, the fixed costs are high and the variable cost is very low, close to nonexistent.

Yet, how does one encourage more ATM traffic? In the broadest sense, by adding more functionality. Cardtronics is currently rolling out its own deposit-taking machines – 1,000 scheduled for 2019. This function is not completely new, as the decades-old method of an envelope and deposit slip was enhanced by Check 21 in 2006 to allow image capture and check truncation by the machine. But Cardtronics’ network, Allpoint, is mostly located at retailers, where deposit-taking has never been a factor.

Cardtronics gets only 5% of its revenue from the 139,000 machines it manages for others. This is a repeatable business under longer-term contracts but mainly serves to help cover fixed costs. For the machines it owns, the largest share of revenue (>70%) comes from surcharge fees and interchange. Neither of these sources is growing. Consumers generally hate surcharge fees – which keep increasing. Interchange itself is stable in the U.S., but LINK in the U.K. cut interchange recently, hurting Cardtronics’ economics there and driving Cardtronics (and other independent ATM deployers, or IADs) to introduce surcharges.

Cardtronics’ only growth revenue is from its bank-branding and surcharge-free network, although this was minimal last year. The idea is to piggybank off card issuers who either have no network of their own or who are reducing it (for example, USAA, a major financial institution that operates without brick-and-mortar branches). All such balance holders, including many new fintech players, issue debit cards, but the question is whether they can do better by paying the convenience fee directly to Cardtronics and thereby making their card more attractive. Another opportunity is brick-and-mortar banks or credit unions that either are cutting back their branch footprint or wish to expand in a new service area without investing so heavily in branches.

The idea is that with deposit functions, no surcharge, and new ideas like cardless (about 11,000 such machines so far), Cardtronics can continue to grow its per-machine volumes by signing up more and institutions that believe they can get by with attractive debit cards and no brick and mortar. This is a strategy of deposit disaggregation, as balances run off the established – and generally larger – financial institutions.

How well is this working? The results are still early. Cardtronics is a cash cow and has been so for most of the past five years except for the major disruption caused by losing the 7-Eleven account. That was 12.5% of Cardtronics’ revenue and about 40% of its gross margins in 2017. The stock began to tank in early February 2017 from a high of about 55. By November, it was down to about 18, a possible overreaction. Since then the stock has gradually improved.

For Q1 2019, the company announced $20 million of adjusted free cash flow and also authorization for a share buyback program. These are encouraging signs.

In that same first quarter, across all of its ATMs, Cardtronics saw a 2.3% decrease in cash withdrawal transactions. The number of ATMs that it or retailers own declined by 5%. Cardtronics saw 753 withdrawal transactions per month per machine excluding the ones it manages for others. Adjusted operating gross profit per machine per month went up slightly to $324. So, there is hope for better growth, but it may be slow. In the meantime, rationalization is at work.

Others have noticed. Cardtronics (CATM), currently trading at 34.92, is rated 9.1 “very bullish” from the Thomson Reuters StarMine Equity Summary Score. There may be some takeover possibility built into this price. In 2018, Fiserv bought MoneyPass, the second largest U.S. ATM network, and ancillary assets, from the Elan unit of US Bancorp for a reported $690 million, or about 4 times sales. This compares to Cardtronics’ current price/sales (most recent quarter) of 1.23.

In summary, Cardtronics should remain one of the best value plays in the bank technology space and certainly the only one taking advantage of the very long tail of the ATM existence.

The post Are ATMs Under Valued? appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – Omnichannel and Branch Banking: The Current U.S. Consumer Banking Environment

• Consumers are resolute in avoiding paying ATM surcharges
• When asked about ATM surcharges 77% report they “do anything they can to avoid ATM Charges”
• Additionally, 65% report that they “actively seek out ATMs that are in surcharge-free networks”
• Only 25% are willing to pay for the convenience of having an ATM where and when they want it
• When it comes to withdrawing cash from ATMs fees are clearly top of mind to consumers

About this report 

Mercator Advisory Group’s most recent Insight Summary Report, Omnichannel and Branch Banking: The Current U.S. Consumer Banking Environment, reveals that U.S. customers are highly satisfied with their banking relationship and comfortable with their current primary bank or credit union. The report is from the Banking and Channels Survey in the bi-annual CustomerMonitor Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s CustomerMonitor Survey Series online survey of 3,000 U.S. adult consumers in November 2018.

The survey also found that only about 1 in 3 consumers want to be contacted by their financial institution (FI) about new products and services. This necessitates that FIs be very strategic in the way they cross-sell and up-sell to their customers

While the incidence of opening an account digitally is moderate (28%), satisfaction with the digital account opening process is very high (approx. 85%).

The report, Omnichannel and Branch Banking: The Current U.S. Consumer Banking Environment, shows that consumers are resolute in their determination not to pay ATM fees. More than 7 in 10 report that they actively try to avoid paying a fee when they withdraw money from an ATM. Further, about one-third only use an ATM for cash withdrawal.

Although only about one-third of consumers use mobile banking, those who do are quite satisfied with the experience. Inertia and security concerns are barriers to mobile banking adoption

“Banks need to show consumers value beyond dollars and convenience. And this needs to be balanced with security and safety,” states the author of the report, Pete Reville, Director of Primary Data Services including CustomerMonitor Survey Series at Mercator Advisory Group.

The post What Percent of Consumer Do Anything They Can to Avoid ATM Charges? appeared first on PaymentsJournal.

Cash is holding strong as a consumer payment instrument. According to the Federal Reserve 2018 Diary of Consumer Payment Choice, cash was the most used payment type among US consumers—representing 36% of all payments. Cash is easy to use, safe to use, private, and generally accepted everywhere. As Mercator Advisory Group’s Director of Debit & Alternative Products Sara Grotta explains, the decline in cash use will be very gradual – and ATM usage will mirror a slow pace of change.

Sarah continues, ‘ATMs are a central element of the evolution moving more banking transactions to self-service, a movement that also includes online and mobile technology. Strategies for the branch network and the ATM network are often managed in concert. ATMs are responsible for removing some of the foot traffic from branches, but they can also be a key component for customer retention when a financial institution closes a branch office, replacing it with ATMs with enhanced services.’

Retail-based ATM Channel

Financial Institutions are turning toward ATMs to increase deposit rate amid closures in retail branch locations. According to Brad Nolan, EVP of Allpoint Solutions at Cardtronics, ATMs offer a channel to extend banking access to customers while pulling mundane high-cost transactions out of the branch. What banks need to leverage is what Nolan calls the “on-ATM” culture in reference to strong consumer demand for on-demand cash. Who wants to travel ‘all the way’ to the bank to get cash? FI’s can harness this “on-ATM” culture if they place ATM’s in convenient locations where their customers need cash: premium retail locations

But what about the digital channel? For FI’s concerned with digital demand, cardless ATMs, which allow consumers to withdraw cash on an ATM via a secure smartphone app, offer the ability to engage customers through the app instead of the wallet. Looking to solutions such as Allpoint+ that provide surcharge-free ATM’s in premium retail locations or Allpoint Mobile Cash, that harness the smartphone app for a mobile cash solution, FI’s have an option.

In an upcoming webinar titled “Leveraging Retail ATM Networks to Reshape Deposit Strategies” Brad Nolan, EVP for Allpoint Solutions at Cardtronics will join Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group to discuss retail-based, surcharge-free deposit ATMs as a channel for FI’s and the drivers for such a channel from the consumer and the FI point of view. The following topics will be covered in the webinar:

Join Us Thursday, Apr 25, 2019, 2:00 PM – 3:00 PM EST

• The place of cash in the payments economy
• Consumer drivers for cash
• Ways to empower cash access
• Benefits of cash access to issuers

REGISTER

The post Cash Is Resilient, so Are ATM’s appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – Omnichannel and Branch Banking: The Current U.S. Consumer Banking Environment

• 59% of consumers want to withdraw in more specific $ denominations from ATMs
• 14% of US consumers refuse to withdraw cash at an ATM, period
• 31% of US consumers won’t conduct any other type of ATM transaction but cash withdrawal
• 77% of consumers report “I do anything I can to avoid paying ATM surcharges”
• Half of consumers (49%) report they do not make deposits at ATMs
• Mostly, it seems they’re unfamiliar (11%) or never tried (27%) or untrusting (28%) of depositing at an ATM
• And 49% of US consumers just plain “prefer a teller”

About this report

Mercator Advisory Group’s most recent Insight Summary Report, Omnichannel and Branch Banking: The Current U.S. Consumer Banking Environment, reveals that U.S. customers are highly satisfied with their banking relationship and comfortable with their current primary bank or credit union. The report is from the Banking and Channels Survey in the bi-annual CustomerMonitor Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s CustomerMonitor Survey Series online survey of 3,000 U.S. adult consumers in November 2018.

The survey also found that only about 1 in 3 consumers want to be contacted by their financial institution (FI) about new products and services. This necessitates that FIs be very strategic in the way they cross-sell and up-sell to their customers

While the incidence of opening an account digitally is moderate (28%), satisfaction with the digital account opening process is very high (approx. 85%).

The report, Omnichannel and Branch Banking: The Current U.S. Consumer Banking Environment, shows that consumers are resolute in their determination not to pay ATM fees. More than 7 in 10 report that they actively try to avoid paying a fee when they withdraw money from an ATM. Further, about one-third only use an ATM for cash withdrawal.

Although only about one-third of consumers use mobile banking, those who do are quite satisfied with the experience. Inertia and security concerns are barriers to mobile banking adoption

“Banks need to show consumers value beyond dollars and convenience. And this needs to be balanced with security and safety,” states the author of the report, Pete Reville, Director of Primary Data Services including CustomerMonitor Survey Series at Mercator Advisory Group.

The post If Consumers Could Have One Thing from ATMs It’d Be This, Plus 6 New ATM Stats: appeared first on PaymentsJournal.

Recently U.S. state legislatures have been taking up the cause to require the acceptance of cash in retail locations. Why? Because 1) cash is legal tender and there is an expectation of ubiquitous acceptance and 2) there is a segment of society that operates in a financial system that relies heavily on cash. Not allowing people to pay in cash is viewed as discriminatory towards the unbanked and underbanked. Massachusetts has such a law requiring cash acceptance and others are considering it.

The UK which has been taking efforts through a variety of initiatives including their Faster Payments platform to eliminate cash is now taking an about-face and considering the implication of reaching a cashless society on those that transaction nearly exclusively in cash. Not surprisingly, the Link ATM network produced a report regarding the availability of cash access. More on that report here.

An article in Finextra goes so far as to call the decline of ATM access for cash a crisis in the U.K.:

UK banks and regulators are being urged to act to prevent the country from “sleepwalking” into a cashless society, in a hard-hitting report prepared by former financial ombudsman Natalie Ceeney.

The Access to Cash review prepared on behalf of the Link ATM network, concludes that digital payments don’t yet work for everyone and around eight million adults (17% of the population) would struggle to cope in a cashless society.

The publication of the report follows a mid-February plea from the UK’s Treasury Committee for urgent action to prevent the “collapse of access to cash” as ATM numbers drop and bank branches disappear from the high street. 

Nicky Morgan MP, chair of the Treasury Select Committee says that tinkering around the edges to preserve the status quo will not work.

“It’s clear that something more fundamental is needed,” she says. “This report sets an expectation that the Government, the regulators and industry will respond with a plan of action. I support this approach and consider that it would be highly negligent for those parties not to provide a considered response”.

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

The post Putting the Brakes on a Cashless Society appeared first on PaymentsJournal.

Cash is resilient. Through decades of plastic-based and digital payment innovations, this tried-and-true tender has proven its staying power. However, it’s safe to say that the way consumers view cash and want to use it is very much evolving.

Today’s consumers want access, freedom, and choice. They want control. The financial institutions and service providers who give it to them will be the ones to own the market.

According to Brad Nolan, EVP for Allpoint Solutions at Cardtronics, that’s why financial services providers are increasingly looking to retail ATMs to support cash-out and cash-in activity. Some are even looking to the point of sale as an avenue for providing these services – but let’s not get ahead of ourselves. Nolan says that’s still a long way away.

Much nearer at hand is the demand for ATMs to do more. Here’s why Nolan says it’s time for financial institutions and service providers to hop on the train  – and there’s still time to do so before it pulls out of the station.

Market Dynamics

During his 20 years with JP Morgan Chase, Nolan gained long-term and bird’s-eye views of marketplace trends that have pointed him toward the conclusion that it’s time for a new generation of ATMs. But he’s not just leaning on his own anecdotal evidence.

The Federal Reserve’s 2016 Diary of Consumer Payments showed that cash was still the most-used payment instrument, representing 31 percent of all payments – and 60 percent of small-dollar purchases (under $10) as well as 45 percent of payments from low-income households. All told, the world paid more than $18 trillion in cash that year.

Sorry, what was that about cash being dead?

Far from it, cash is alive and kicking – and the demand for convenient cash is substantial. The number of consumers retrieving cash from an ATM other than their banks’ ATM doubled from 2012 to 2017. Rather, Nolan observes, it’s teller transactions that are falling as a result of a growing reliance on ATMs.

“Many think of digital and ATM cash as being in direct competition,” Nolan said. “The reality here is ATMs were the first digital channel and still play an important role in helping consumers convert digital funds to physical cash in hand.”

Even as cash payments share the spotlight with newer digital options, Nolan said ATM transaction volumes are still projected to grow over the next four to five years. It is no less important today than in years past for financial institutions to provide the cash consumers demand. There is still time for financial institutions to join the on-demand cash movement – or as he calls it, “on-ATM” – utilizing a modern ATM strategy to compete for cash-hungry customers.

Benefits of a Retail Deposit Channel

Why do consumers bank where they bank? Most would say, “Convenience” – they have an account with the financial institution around the corner from their home or work.

However, this notion that convenience is defined by branch location falls apart when you ask the consumer if they ever actually go into the branch. Today’s consumer has redefined convenience, says Nolan. They’re looking for two things: a killer mobile app, and free and convenient access to cash via ATMs. Digital defines the way consumers interact with their finances, and the ATM is the connection point with those digital finances to a physical world. As consumers reprioritize their needs, Nolan says banks should realize that cash access is imperative to customer acquisition and retention and is, in fact, a critical underpinning of a digital banking strategy.

Giving the customer what they want can drive overall business efficiencies, says Nolan. Imagine that

The specific numbers, of course, will vary bank by bank, but for this example, that plays out to a reduction of 657 tellers and $25 million in teller expense savings. It also produces customer growth rates of around 70,000 incremental customers, with a $40 million marketing value increase. In total, Bank X would realize $65 million in overall value purely by creating free and convenient access to cash.

Case Study: Growing Consumer Trust in the ATM

Nolan shared the following real-life example.

A financial institution recently enabled deposit capabilities at its ATMs with a mass merchant retailer in four different markets. In each market, the number of deposits increased steadily each month after the change was made. Perhaps more significantly, the dollar amounts of the deposits also increased.

Furthermore, the number of cash deposits exceeded the number of check deposits, and the total number of deposits outnumbered cash withdrawals. That is, customers were putting more money into the ATM than they were taking out. If that’s not a sign of demand, what is?

“Consumers are gaining trust in the ATM and making deposits,” Nolan concluded – and “when it comes to deposits, customers have to trust that it’s going to get into their account, and get there on time.”

Whereas those same consumers used to get in their car and roll up to the drive-through ATM – or even get out of their car and wait in line in the branch lobby – to ensure that their deposit made it into their account, and did so on time, they are now entrusting the same task to a machine located in the store where they are already shopping, no special bank trip required.

Winning the Trust Game

There is, however, a limit to human trust, which is why Nolan says you won’t see point-of-sale clerks processing cash deposits anytime soon. On top of that, he doesn’t anticipate that financial institutions will ever get behind point of sale as part of their deposit retention strategies because there’s no potential for branding.

An ATM, conversely, can convey the brand experience of a given financial institution by leveraging familiar colors and logos – even at multi-bank utility ATMs. Nolan says that will be a key component of creating consumer trust in a utility ATM – and trust will be required to move into the “on-ATM” future.

In conclusion, Nolan says, the top financial organizations in the “on-ATM” game will enable consumers to take cash out, put cash in, and convert physical cash-in-hand back to digital, either in the form of a traditional deposit or as a bill payment, a P2P transfer, or an account top-up – and they will do all this not just from their own branded ATMs, but from multi-bank utility ATMs that better serve their customers by making cash access easy, convenient, and free.

The post “On-ATM” – The Rising Culture of On-Demand Cash appeared first on PaymentsJournal.

With thousands of banks, community banks and credit unions, the U.S. is a unique banking market.  From time to time, an industry expert of some sort will suggest that the number of financial institutions creates an inefficient market for providing banking services and constrains the development and deployment of new technology.  An example cited includes the development of real-time payments which will be orders of magnitude more difficult to roll out in a disparate market like the U.S. as getting 11,000+ institutions to agree on an interoperable approach that reaches most consumers and businesses will take a very long time.

Now it appears the pendulum is beginning to swing the other direction.  There are now voices saying that branch and ATM consolidation, whether due to a decline in use or a result of a financial institution acquisition, should stop. One such important voice, Federal Reserve Chairman Jerome Powell suggest that consolidation will unfairly impact the financially underserved:

Decades of bank industry consolidation have weighed on the economies of rural areas as branches and local community banks disappeared and access to financial services declined, Federal Reserve Chairman Jerome Powell said on Tuesday, citing meetings of Fed staff held last year in communities where banks had closed.

The trend is likely stunting business and consumer lending, particularly for already poor and isolated communities, Powell said at a conference at Mississippi Valley State University addressing ways to improve financial services and reduce poverty levels in rural areas.

“The loss of the branch often meant more than the loss of access to financial services; it also meant the loss of financial advice, local civic leadership, and an institution that brought needed customers to nearby businesses,” Powell said. The largest impacts, he said, are on “small businesses, older people, and people with limited access to transportation.”

That comes at a time, he said, when the economy as a whole is doing well, but the benefits are not well spread.

“Data at the national level show a strong economy. Unemployment is near a half-century low, and economic output is growing at a solid pace,” Powell said. “But we know that prosperity has not been felt as much in some areas, including many rural places,” like the counties of the Mississippi Delta. 

The concern may mean more pressure to retain branch locations, or perhaps replace branches with more sophisticated self-service ATM locations. The Chairman Powell further commented that in order to enforce banking access in underserved locations, changes to the Community Reinvestment Act (CRA) may be needed:

Powell said he hoped a debate over change to the CRA would lead to a law that would “more effectively encourage banks to seek opportunities in underserved areas.”

He said he felt the Fed’s move to lighten regulations on community banks could help by keeping more of them in business.

Overview  by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

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Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – 2018 U.S. ATM Benchmark Report

• Debit fraud is more prevalent than ATM fraud, and both are less than credit card fraud
• ATM fraud: 4.6 basis points – Debit fraud: 5.6 basis points – Credit fraud: 10 basis points – bps = 1/10th of 1%
• The number of fraudulent ATM withdrawals increased slightly from 2012 (1.3 million) to 2015 (1.4 million)
• By 2017 EMV chips broadly moved fraud from the point of sale to online and ATM, significantly increasing ATM “Skimming” and “Shimming”
• Skimming occurs when a fraudster uses an undetectable card reader vs. the cards magnetic strip
• Shimming occurs when a fraudster alters the ATM device to harvest data from an EMV chip

About this report

Consumer use of ATMs to get cash, make deposits, and check balances remains strong despite the decline in check writing and new products like apps for digital person-to-person (P2P) payments, payment cards, and mobile wallets that aim to reduce the need for cash. A new research report from Mercator Advisory Group titled 2018 U.S. ATM Benchmark Report explores bank ATM placements in comparison to branch locations, current fraud trends, the launch of various cardless cash access technologies to provide cardless cash access at the ATM, and consumer attitudes toward ATM use.

“We see continued strong use of ATMs by many consumer market segments, including consumers who are also frequent users of online and mobile banking. Given predictions that cash use will begin to decline and in light of the precipitous drop in check use, making long-term investments in ATMs becomes more complex,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Serviceat Mercator Advisory Group and author of the report.

The post Whats More Prevalent, ATM Fraud or Debit Fraud? appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – 2018 U.S. ATM Benchmark Report

• ATM surcharges broke $3 on average out-of-network transaction this year, their highest level ever
• But consumers value surcharge-free ATM highly, 65% of consumers cite its importance when choosing a bank
• 72% of consumers who use digital channels like online and mobile also use ATMs
• 20% of consumers regard the ATM as the primary point of communication with their bank
• Yet ATM owners are dependent on surcharge fees to pay for ATM deployment and maintenance
• As more consumers go surcharge-free, fewer surcharges are collected, thus requiring higher fees to maintain the business

About this report

Consumer use of ATMs to get cash, make deposits, and check balances remains strong despite the decline in check writing and new products like apps for digital person-to-person (P2P) payments, payment cards, and mobile wallets that aim to reduce the need for cash. A new research report from Mercator Advisory Group titled 2018 U.S. ATM Benchmark Report explores bank ATM placements in comparison to branch locations, current fraud trends, the launch of various cardless cash access technologies to provide cardless cash access at the ATM, and consumer attitudes toward ATM use.

“We see continued strong use of ATMs by many consumer market segments, including consumers who are also frequent users of online and mobile banking. Given predictions that cash use will begin to decline and in light of the precipitous drop in check use, making long-term investments in ATMs becomes more complex,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Serviceat Mercator Advisory Group and author of the report.

The post ATM Surcharges Hit Their Highest Rate Ever This Year, Here’s Why: appeared first on PaymentsJournal.

Don’t miss another episode of Truth In Data! Click on the red bell in the lower left corner of your screen to receive notifications as soon as the episode publishes.

Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – 2018 U.S. ATM Benchmark Report

• Most bank closures over the last 5 years occurred with large banks; community bank branches remain steady or increased
• In the last 5 years 7,500 branches of FDIC insured institutions have closed
• 49% of large banks have decreased offices 15% of community banks have decreased offices
• ATM availability is slightly increasing, perhaps in response to bank branch closings
• There are between 475,000 and 500,000 ATMs in the US
• The ratio of ATMs to bank branches varies widely by institution – reflecting divergent strategies on the role of ATMs
• BofA & PNC have 3.5 ATMs per every bank branch – Chase has 3 ATMs per bank – Wells Fargo & Fifth Third have 2.1 – U.S. Bank (1.5) and BB&T (1.37)

About this report

Consumer use of ATMs to get cash, make deposits, and check balances remains strong despite the decline in check writing and new products like apps for digital person-to-person (P2P) payments, payment cards, and mobile wallets that aim to reduce the need for cash. A new research report from Mercator Advisory Group titled 2018 U.S. ATM Benchmark Report explores bank ATM placements in comparison to branch locations, current fraud trends, the launch of various cardless cash access technologies to provide cardless cash access at the ATM, and consumer attitudes toward ATM use.

“We see continued strong use of ATMs by many consumer market segments, including consumers who are also frequent users of online and mobile banking. Given predictions that cash use will begin to decline and in light of the precipitous drop in check use, making long-term investments in ATMs becomes more complex,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Serviceat Mercator Advisory Group and author of the report.

The post Who’s Closing More Bank Branches – Large Banks or Community Banks? appeared first on PaymentsJournal.

What a difference a decade makes.

In 2009, one observer speculated that in another 25 years cell phones would be the new credit cards. Now, as we prepare to enter 2019, Apple Pay is the new norm. The card payments industry is evolving at a pace faster than even the pundits predicted. Technologies that were once the foundations of society are now gradually disappearing.

Take ATMs and bank branches. Their numbers are in decline, as the changing landscape of the payments industry slowly but surely drives them to extinction. Routines like stopping to get a quick tenner for the corner shop, or waiting in line to bank a cheque, might soon belong to the past.

Let’s skip forward another ten years. The number of bank branches is slashed by almost half. And only 26,400 ATMs remain standing by 2029. That’s one for every 25,000 people in the UK.

What a difference a decade makes, indeed.

Let’s take a look at what these changes mean for the industry at large. What’s the fate of cash? How are technological developments empowering maturing, tech-savvy generations to embrace new payment methods? And what are the implications for the individual, and for small businesses?

ATMs and bank branches will be extinct by 2041

Recent research from Expert Market foresees the complete disappearance of all ATMs by 2037, while bank branches, at this rate, have just over 22 years left.

The idea that we’re on the road to a completely cashless society isn’t new, but it is accurate. The waning of ATMs and bank branches represents a trend, more than an anomaly. It’s a pattern that recently saw debit cards finally overtake cash as the UK’s most popular way to pay.

Buyer habits are moving increasingly away from cash, with 98% of the UK’s population owning a debit card. Cash now makes up only a third of all payments, as opposed to a whopping 64% back in 2007. And, like ATMs and bank branches, its future looks bleak. In less than ten years it will only account for around 16% of transactions.

A cashless generation

So what does it all mean? Put bluntly, cash is dying. Tech-savvy millennials and their successors are navigating a new world; a new payment industry. It’s one in which money and wealth won’t be something that can be held. One, perhaps two generations down the line, notes and coins will mean nothing. And money will be digits on a screen, pixels on the illuminated oblong of a smartphone.

And this is already happening. The meteoric rise of banking apps like Monzo have accelerated the downfall of the ATM. An independent survey by Expert Market showed that 41% of millennials would rather pay back friends with an app than with cash.

And it’s not just in paying back friends or buying groceries that cash is suffering. Millennials make 54% of their purchases online. The rise of online retailers like Amazon highlights the extent to which online commerce is driving out more traditional ways of paying.

Why? Because now, it’s easier than ever. Almost all cards issued now are contactless. You can buy an item online in one click and have it delivered to your door the next day. The philosophy of instant gratification has infiltrated the card payments industry, and businesses need to adapt to stay around.

The post ATM and Bank Branch Extinction: What Does It Mean for the Future? appeared first on PaymentsJournal.

• Edinburgh hit the hardest with over 50 local bank branches closing between 2015-18
• Remote areas such as Cornwall and Wiltshire hit hard with over 46 banks branches closing in the past three years
• June marked the first-time debit card payments overtook cash as the most popular payment method in the UK

Research by card payment solution’s provider Paymentsense reveals that ATM’s are closing at an alarming rate across Britain.

Data from Statista shows that across the UK no less than 4,735 ATM’s have vanished in the past 12 months, which averages out at 394 cash machines closing every single month.

Paymentsense have created an infographic that visualises the number of cash machines that have been closed over the past year, which can be seen here.

Figure 1. Paymentsense Infographic to visualise the number of cash machines and bank branches closed between 2015-2018.

Luke Sam Sowden, a visually impaired lifestyle blogger based in Leeds, has faced a number of challenges recently and said: ‘’My local branch closed down due to a spate of burglaries and being visually impaired, I need a local bank with a physical location instead of just an ATM, like a lot of banks seem to be heading towards nowadays.

‘’In the end, I had to change banks, which despite being fairly easy to do thanks to the fast-track switch service, still took a lot of messing around as I had to memorise new account information and passwords, many of which hadn’t been changed for several years.’’

Research reveals that many banks around the UK have been closing their local branches over the past two years. Edinburgh and Cornwall have been the most affected with just over 50 closures:

But for the many that have embraced the cashless society and digital revolution, the prospect of more bank and ATM closures simply isn’t a concern.

Freelance copywriter Ellen Holcombe said: “I have seen a lot of cash machines and branches of banks close in my area, however, this hasn’t really impacted me. Most of the stores and services I use accept cards. I think we’re living in a world that’s going to be cashless very soon and I’m okay with that”.

With demand for cash machines falling and pressure on companies such as Link to keep specific ATMs running, it will be interesting to see how this plays out in the near future. If there’s one thing we can be sure of, however, it’s that cashless payments are going nowhere fast and will most likely only increase in popularity.

Guy Moreve, Chief Marketing Officer at https://www.paymentsense.co.uk said: “ Our research earlier this year highlighted that as a society, we’re now close to becoming cashless with contactless making up over 42% of all transactions. As you can see from our latest study ATM’s and bank branches are closing at an alarming rate’’.

The post Cash-Strapped Britain: Over 394 ATM’s Close Each Month in the UK appeared first on PaymentsJournal.