As NCR Atleos completes its
Shortly after its spinoff became final in October, NCR Atleos announced a partnership with PayNearMe, a company that enables consumers who use cash to make digital payments. And at around the same time, Diebold Nixdorf signed a deal with a credit union and ATM network to expand ATM coverage.
Executives at both companies say ATMs have a lot of life left, given the continued strength of cash and advancements that make ATMs more amenable to a digital economy.
"We have been fighting the impression that ATMs are in decline during most of our roadshow after the split," said Tim Oliver, CEO of NCR Atleos. "ATMs translate digital commerce to physical and from physical to digital."
In the game
NCR Atleos' newest partner, PayNearMe, specializes in enabling digital payments for cash consumers, normally by partnering with convenience stores. PayNearMe has expanded into
Consumers use a secure code from a digital gaming app to select ATMs to collect money won while gaming.
The deal gives NCR Atleos access to nine of the 10 largest online gaming companies in the U.S. and 16 of the 17 largest online casinos. The partnership has a total addressable market of about 125,000 ATMs in the U.S. NCR Atheos has about 770,000 ATMs deployed globally.
NCR, which has its roots in conventional cash registers and ATMs, in 2022 embarked on a project to
But ATMs are still changing rapidly, adding software, using artificial intelligence and enabling banks to streamline their branch strategies, Oliver said.
"We need to invest more deeply in the ATM business," Oliver said. "As a single company [NCR] invested across a portfolio of products, and some capital needs were high across point of sale and digital banking systems. There may have been an under investment in the ATM software stack in the past few years."
Other deployments in recent months include NCR's ATM unit extending its partnership with
"Cash usage may be down, but the actual number of payments is increasing and that keeps cash important. And there are certain parts of the economy and countries that are cash-heavy," Oliver said.
Diebold Nixdorf ramps up deployments post bankruptcy
Diebold Nixdorf last week signed a deal to upgrade and manage the self-service banking channel for Texas Dow Employees Credit Union. The credit union will replace 141 ATMs across branch locations and Buc-ee's convenience stores in the next year. The credit union, which has 372,000 members, wants to improve ATM security, and will add Diebold Nixdorf's anti-skimming technology for cards with NFC capabilities.
Diebold Nixdorf
"Financial institutions are under intense pressure to improve their efficiency ratio," said Joe Myers, executive vice president of global banking at Diebold Nixdorf, contending there is demand for products that can improve the cost/revenue ratio. "With physical and digital attacks on ATMs on the rise, we're also seeing demand for increased security for [self-service devices]."
The Texas credit union deployment followed an earlier deal Diebold Nixdorf signed in October with TransFund, a U.S.-based ATM network. Under terms of the five-year deal, TransFund will add AI-enabled analysis of ATM usage and trends to identify potential failures, fraud or compromises to mitigate future incidents, with an early deployment of up to 900 ATMs. Other features include using ATMs to deliver targeted marketing and incentive campaigns.
Diebold Nixdorf is focusing on reducing the cost of cash management as financial services become more digital. Myers estimates cash management accounts for 50% of ATM network costs, and the company is pushing cash recycling technology as a way to mitigate that expense. "This involves how much cash is required in the ATMs and the cash-in-transit costs associated with maintaining that," Myers said.
Are ATMs holding steady?
Data on ATMs varies, but the number of machines is not expanding or declining in a dramatic manner.
Despite the rise of digital options, demand for ATMs comes from a variety of sources, ranging from technological advancements to sociological shifts, according to Agustin Rubini, director and analyst for Gartner Banking and Investment Services Global Research. QR codes, biometrics, and facial recognition are increasingly integrated into ATM machines, making them more secure and convenient for users, Rubini said.
"These features can attract individuals who are concerned about security or who appreciate the ease of use. For example, biometric authentication can reduce the risk of card skimming and identity theft, which are significant concerns for many people," Rubini said.
ATMs can also help fill gaps in bank branches as the number of banking offices declines.
"In the U.K., for instance, there has been a trend of bank branch closures, which has left some communities without easy access to in-person banking services," Rubini said. "ATMs fill this void, especially for those who are less inclined or unable to engage with online banking platforms, such as some elderly individuals or those in rural areas."
And for some small businesses and local services, cash is often the preferred, if not the only, form of payment accepted, Rubini said. "There's also the consideration of underbanked populations, especially in developing markets, where people might have limited access to banking services but can use ATMs to connect with digital banking platforms," he said.
The advancement of technology such as
"Banks that are seeking to broaden their footprint can test to see if a more full-service branch is possible, while other banks will leave ATMs behind when they close a branch," Meara said.
