Long live ATM machines
The rapid onset of mobile money in South Africa and other developing markets, means that traditional transaction portals, such as ATM machines, could be considered on their way out. A mobile device can do virtually the same things as an ATM, such as transferring funds between banks or accounts, depositing or withdrawing funds, buying electricity and airtime, or paying bills, all in a convenient fashion. But, the reality is that all banking channels – ATM machines, credit card point of sale machines and mobile phones – are all crucial components of the banking mix. Here’s why ATMs are here to stay.
An overwhelming number of people prefer to use ATM machines for transactions
While there are numerous alternative payment options and a growing number of people using mobile banking apps, World Wide Worx’s 2014 Mobility research study shows that the majority of South Africans still rely on ATMs for their transactions: 94% access their bank accounts through these machines.
Constantly evolving ATM technology means an enhanced experience for consumers
Enhanced technology has improved the ATM banking experience for consumers. Payments Leader explains that ATMs are becoming more powerful and diverse, evolving from simple money dispensers into electronic banking kiosks, which pair traditional ATM functions with a range of other capabilities. In the US, ATMs are beginning to replace the need for people to visit a bank branch because people can interact with tellers on ATM machines via video streaming technology.
In South Africa, new technology will encourage the mass rollout of ATMs
Evolved technology also indicates wider access to ATMs. For instance, CellPAD technology, introduced by ATM Solutions, uses GPRS wireless technology instead of landlines. This means that ATM machines can be installed in remote areas, which provides banking services to more people. ATM Solutions also introduced solar-powered ATMS, so should there be a power outage, people still have the ability to use their bank cards to access their cash or purchase prepaid services.
Earn more money and install an in-store ATM
Access to cash is crucial in South Africa, despite the plethora of alternative payment options. ATMs offer a convenient banking experience, and a store, whether a large retail outlet or convenience store, offers the perfect opportunity for people to do their banking in a safe environment. The in-store ATM offers a value-added service to customers, and boosts the store-owner’s bottom-line too because there is increased foot traffic and an additional revenue generated from transactions.