Eighty two percent of Americans believe merchants should have a cash option for purchases. Accepting cash is the first step toward customer retention, but why not go a step further and provide access to cash with an ATM in store?
On average, Americans use ATMs 225 times a month, according to statistics from the Federal Reserve Diary of Consumer Payment Choice. That’s 225 additional opportunities for your business to make a sale. And with 65% of consumers spending some or all of their withdrawals at the ATM’s location, why aren’t you taking advantage of that?
Unbanked & Underbanked Americans Rely on Cash
A surprisingly high proportion of the U.S. population, around 63 million, are unbanked or underbanked. In fact, one in 10 adults do not have a checking or savings account and 24% are “underbanked,” which means they rely on alternative payment methods like pre-paid payday cards.
This means there is a heavy reliance on cash in some communities, especially those that tend to be poorer or more rural. To those who rely on cash as their primary payment method, an ATM is a haven in the community - turning your business into their go-to place to get their cash needs met. And since they are already at your location, they are more likely to use your store to purchase the products and services they need.
Attract New Customers
A convenient ATM is a beacon for customers who would have otherwise kept on walking past your store. It is an instant advertisement and something which sells itself. The average American uses an ATM 3.8 times a month, with men and younger consumers (18–34-year-olds) withdrawing cash 4.7 and 5.8 times respectively.
Keep Customers Coming Back
Every store owner has faced that moment where a customer realizes they don’t have enough cash on them and need to find an ATM.
How many of those customers actually return? Chances are, in their search for cash, they’ve found a similar store closer to the ATM where they can buy their goods, or have run out of time, forcing them to dismiss the purchase. Installing an ATM in your store means you never need to lose a customer again. Not only that, but your customer satisfaction rating just went through the roof! That’s how you ensure returning customers, that’s how your profits grow.
New Income & Savings Too!
An ATM offers you new income too. That’s right, you earn money every time someone uses the terminal. By having an ATM on the premises, not only does it increase your foot traffic and boost sales, you also have the bonus of fees paid to you for every use of the machine.
There are savings too. The average merchant transaction fee on card payments is between 1.5 to 3.5%, which can quickly eat into profits. By reducing the number of card payments you take in and increasing the numbers of customers who withdraw cash from the ATM that will affect your bottom line. Cash payments save your business money on transaction fees and increased usage of the ATM boosts your income.
Having an ATM is a Win-Win
Choosing cash is an option for some, and a necessity for others. And the younger your customer base the more likely you are to see cash payments favored over debit or credit cards. New research shows Gen Z prefers cash to any other payment method. Not only do they like to pay in cash, but this younger generation also use cash as a budgeting tool to keep them on the right track.
Getting an ATM for your business means increased sales and foot traffic, customer loyalty and retention, a reduction in fees and an additional income stream. Can your business really afford to not have an ATM?
Find out if you qualify for a FREE ATM. Give us a call at (800) 849-3029 or email us.