In our previous blog on in-store ATM machines we highlighted how the cardholder base in South Africa is growing. While one might think that the need for ATM machines would decline with a rise in the number of people using credit cards, it has actually created a demand for more ATM machines as many choose to use cards to pay for large purchases and cash for smaller purchases. Today’s customer wants and expects convenience, especially when it comes to finding an ATM. This pain point is a fantastic opportunity for a store owner to provide a solution. Choosing a self-cashed ATM machine – that’s cashed by you, the store owner, rather than by Cash-in-transit (CIT) vans – not only affords you the benefits of increased footfall and revenue, but a range of other advantages.
Monthly cash sales must be sufficient to keep the in-store ATM full
Keeping the ATM machine filled with cash is the sole responsibility of the store owner, even though your ATM machine provider will send out an SMS alert when cash levels are running low. If you’re considering an in-store ATM machine, it’s important that you generate enough sales to be able to keep the ATM full.
A self-cashed ATM saves you cash deposit fees and is more secure than keeping cash in the till
Without a self-cashed ATM machine in your store, you’d have to deposit the equivalent amount you’d be making in cash sales at the bank. If you’re taking in R300,000 per month, you’d incur about R3,000 in cash deposit fees. Not only do self-cashed ATM machines save you deposit fees, but storing your cash inside an ATM is more secure than keeping it in the tills. What’s more, you’ll be able to cash the ATM machine when your store is locked. The cash you deposit into your ATM is automatically transferred to your bank account.
An in-store ATM will afford you greater revenue – from increased sales and through rebates on each transaction
Besides an increase in sales owing to more people visiting your store to use the ATM – research has shown that about 40% of cash withdrawn from in-store ATMs is actually spent back in your business – you’ll earn a small rebate on each cash withdrawal. By having an in-store ATM on your premises, more customers will pay in cash, which will save you the cost of credit card transaction fees.
In-store ATMs offer value added services such as airtime and electricity
By having an in-store ATM machine, you’re providing a better service to your customers – ensuring they become repeat customers. As well as dispensing cash, an in-store ATM also offers customers staples such as prepaid airtime and electricity.
The average amount of cash withdrawn from an in-store ATM is approximately R300,384 per month
According to data gathered across our in-store ATM machines, the average ATM withdrawal is approximately R596, and the average number of withdrawals per store is around 18 per day. Assuming your store is open seven days a week, that’s 400 withdrawals a month, which adds up to R300,384 per month.
If you’d like to find out more about how our in-store ATMs can make the running of your store cheaper and more efficient, download the ATM brochure for more information on our ATM solutions.