These firms are chasing a shrinking market, at least in the U.S. The number of ATMs in the U.S. in June 2024 fell below 450,000, according to the
In this environment, promoting cash is not profitable for banks, according to
Since the level of ATM installations has stopped growing on its own, ATM sellers have been forced to get creative. By pairing with Chime, NCR Atleos can reach consumers who may need access to cash outside a bank branch.
"The digital customer doesn't mean cashless, it means branchless," said Benjamin Bregman, senior vice president for global financial institution strategy and development for NCR Atleos. "Chime cardholders are provided fee-free ATMs in every state and many of the ATMs will now carry the Chime brand, connecting cardholders with the brand before engaging with Chime."
In an email, Nick Fairbairn, vice president of marketing for Chime, said "We know consumers need good solutions digitally, but also solutions for their financial services in the real world that are as convenient as the mobile ones. We are continuing to enhance our members' experience by bringing more physical services beyond those we offer digitally to make using Chime the best option for everyday people in America."
NCR Atleos in August also signed a distribution deal with Credit Union of America to deploy NCR's Allpoint network ATMs. That follows other recent Allpoint deals with Black Hills FCU, Palmetto Citizens FCU, Arizona Financial Credit Union and VyStar Credit Union, adding to a network of "several hundred" credit unions, Bregman said.
"Credit unions operate within a defined field of memberships that can constrain them from serving their millions of members," Bregman said. NCR, a long-standing manufacturer of point of sale systems and ATMs,
NCR Atleos focused on ATMs, while NCR Voyix sells digital commerce technology. That division is designed for faster double-digit growth, while the ATM side carries less debt but slower single-digit growth. NCR Atleos' net revenue grew 4% to $1.08 billion in the most recent quarter while affirming its yearly outlook.
There are additional options to expand ATMs outside of the U.S. NCR Atleos in the past year boosted its physical reach by extending its partnership with Kiwibank in New Zealand and entering the Portuguese market, where 30% of payments are still in cash. It additionally added to its network in Greece, another cash-heavy country.
ATM deployments are increasing outside the U.S., particularly in developing countries that are cash-dominant, said Robert Meara, a senior analyst with Celent's banking practice, adding that reaching emerging markets is a more likely opportunity for ATM makers than stacking digital payments technology onto existing machines in mature markets. "Over the years ATM markers have done yeoman's work in designing capabilities into these machines that would promote more broad use. But that has never really resonated with consumers," Meara said. "So the primary use is still cash deposits and withdrawals."
Diebold Nixdorf is also relying on non-U.S. markets to boost its ATM network. The firm has entered several recent ATM distribution partnerships in the U.K. to take advantage of a new U.K. regulation that requires banks to provide an alternative to access cash before closing a branch.
"There are strict regulations there that provide an opportunity for us to serve that need, to support banks as they minimize their branch footprints," said Joe Myers, executive vice president of global banking for Diebold Nixdorf. European markets are also more advanced than the U.S. in pooling ATMs among banks to create networks, Myers said.
Diebold Nixdorf, which has focused on expanding its ATM fleet's digital services and financial inclusion features as part of its post-bankruptcy plan, recently reported
"As banks become more conscious of reducing their branch costs, ATMs are a way to reduce that expense," Myers said.
