Cryptocurrency ATM: Should You Add One to Your Fleet?

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A cryptocurrency ATM is very similar to a traditional ATM. That’s part of what’s making them so popular. Their familiarity and ease of use lessen users’ apprehension and therefore draw more and more customers every year.  

You might already be familiar with cryptocurrency. You might buy and sell it yourself. If so, you might wonder whether adding a cryptocurrency ATM to your fleet is a good idea. Take some time to weigh the pros and cons when making your decision. 

New to cryptocurrency? Cryptocurrency ATMs are explained next!

What is a Cryptocurrency ATM?

A cryptocurrency ATM is an ATM machine that allows you to purchase and sell cryptocurrency. If you can picture a traditional ATM machine, you can imagine a cryptocurrency ATM machine. They look and function very similarly. And some ATM machines are converted to cryptocurrency ATM machines.

You might have heard of Bitcoin ATM machines, or BTMs/BATMs. It’s all the same. BTMs can be configured to enable all kinds of cryptocurrencies, not just Bitcoin. Some BTMs are unidirectional, meaning you can only use the machine to purchase cryptocurrency. Others are bidirectional. They allow you to buy cryptocurrency as well as sell it in exchange for cash.

BTMs do not connect to users’ bank accounts. Instead, users access their digital wallets from a cryptocurrency ATM. For many, this is much more convenient than suffering the longer wait times of online buying and selling. 

The United States leads the world with over 36,000 cryptocurrency ATM machines. That number has risen 8% since December 2021. Cryptocurrency is only getting more popular, and the need for convenient access is increasing. Should you join the cryptocurrency craze? Let’s take a look at some pros and cons of cryptocurrency ATMs.

Pros of a Cryptocurrency ATM

Easy to Use

First, a major draw of cryptocurrency ATM machines is that they are easy to use. This makes it a convenient service that crypto customers want and need. It’s important that people feel safe buying and selling cryptocurrency. BTMs provide them with the familiar comfort of a traditional ATM machine. A BTM transaction is similar to a regular banking transaction that most people understand.

Second, BTMs offer quicker transaction times than cryptocurrency trading websites. This offers customers a convenience they can only experience with a cryptocurrency ATM machine. 

These benefits support the need for more cryptocurrency ATM deployments.

New

BTMs are shiny and new! Those who aren’t already buying and selling crypto might see your cryptocurrency ATM machine, become curious, and try it for themselves. And guess whose machine they will use when they’re ready…. 

If you are an independent ATM deployer (IAD), adding a BTM to your fleet could set your business apart from the competition. You diversify your portfolio and have another service to offer customers, a one-stop shop if you deploy an ATM and BTM in the same area. 

If you are a business owner, having a cryptocurrency ATM in your business gives more people a reason to go there. You bring in more customers and passers-by when people hear that you offer BTM services. 

In either case, IAD or business owner, since BTMs are still relatively new, you could get ahead of the curve and corner the market for crypto services in your area.

Cash Recyclable

Some cryptocurrency ATMs are able to recycle cash. What this means is that the cash that users insert to purchase cryptocurrency can be the same cash that the machine dispenses to users who sell their cryptocurrency via your machine. 

Even if your BTM is unidirectional, and users can only purchase crypto from your machine and not sell it, the cash that users insert can be the same cash you use to reload your ATM machine. This can save you time and money working with a bank for your cash loading needs.

Secure

Cryptocurrency transactions are very secure with the help of blockchain technology. This is a large part of why more and more users are demanding more BTM deployments. Crypto users want a safe, secure, trusted way to buy and sell cryptocurrency. BTMs offer that with two-factor authentication and secure online transactions. BTMs can authenticate customers by ID, fingerprint, or QR code.

Profitable

There are many different ways to profit from a cryptocurrency ATM. The extra service brings locations more foot traffic, and you save money on credit card company and bank fees.

You also earn revenue from each cryptocurrency transaction made on your machine. Unlike traditional ATM machines, BTM transaction fees are a percentage of the transaction amount. However, with its popularity rapidly increasing, the BTM business can be quite profitable. 

Cons of a Cryptocurrency ATM

Equipment Costs

The first potential con to consider is the cost of equipment. Machines can cost as much as (if not more than) a traditional ATM machine. However, you can see about downloading software to an existing ATM machine that provides your ATM with cryptocurrency capabilities.

Niched Market

Cryptocurrency ATMs are much more popular in large cities like Los Angeles, Chicago, and New York. That is not to say that a BTM in your hometown wouldn’t do well. You just have to gauge the amount of need for the service in your area. Do you think you could bring in enough transactions each month to justify the time and money it would cost to operate it?

New Technology

Although BTMs are very similar to traditional ATM machines in structure and function, you still might experience a learning curve with the new technology. You have to consider whether or not you have the time to devote to learning the new technology, keeping up with changes, researching the fluctuation of transaction fees, and solving technological issues that could arise.

Different Compliance Rules

This may or may not be a con for you. You know there are certain rules and regulations you have to follow to operate an ATM machine, so why would a BTM be any different? 

BTMs are considered money services businesses (MSBs), so you have to register your business as such with the U. S. Treasury’s Financial Crimes Enforcement Network (FinCEN) when getting started. Then, you will purchase a custom-built Anti-Money Laundering (AML) program. 

Financial regulations are nothing new, and they protect you and your customers. These might just add a few extra steps and take some getting used to.

Should You Add a Cryptocurrency ATM to Your Fleet?

Unless you have any particular hang-ups about getting involved in cryptocurrency, it’s a good option to consider IF you find a promising location that justifies the cost of the equipment or software.

Like any business, there are certain risks involved in the decision-making process. You might risk your BTM not performing well. You might find that there isn’t the demand you thought there would be. However, this might just mean that your return on investment takes a little longer than you expected. If all else fails, remember that you can always try to move the machine to a better location! Like an ATM business, cryptocurrency ATMs are simple, flexible ways to generate passive income. Interested in learning more about your cryptocurrency ATM machine options? Talk to us today!

7 ATM Customer Service Tips

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You may be surprised to read that there are ATM customer service tips. After all, you likely won’t see or personally interact with your customers on a daily basis. However, you do operate a business. And good business people must practice certain etiquette to maintain a successful business. 

You might be competing with banks or other nearby ATM machines. To maximize your transaction revenue, you want customers to choose your machine. How do you do that?

The beauty of the ATM business is that you are able to generate passive income. That means that your machine should make you money with a minimum amount of effort from you. But keep in mind that in order to generate that passive income, you have to make sure that your business runs smoothly even when you aren’t around. 

The following ATM customer service tips will help you provide a seamless experience for your users. And hopefully create repeat customers. But these ATM customer service tips also apply to your relationship with the location owner. 

If you place your ATM machine in someone else’s store, you want to ensure that the store owner and everyone involved is happy with you and your machine. Otherwise, you could risk losing the location. And that can be a costly dilemma, especially if the location brings in a lot of transactions.

So as you read these 7 ATM customer service tips, think about how you can improve your relationship with the location owner and your customers. Because good customer service could make or break your business.  

7 ATM Customer Service Tips

1. Communicate Clearly

When it comes to customer service, communication is key. We can think of a few examples. 

First of all, be transparent about your surcharge fee. No one likes to be surprised by an unexpected charge. And if you have to raise the surcharge, let your customers know why! It’s easier to accept a change if it can be logically understood.

Second, if your machine is out of order for whatever reason, let your customers know what’s going on. If possible, provide a timeframe for resolving the issue. Otherwise, an out of order sign can deter customers for a long time if they feel like they can’t expect reliable service consistently. 

It’s also important to use positive language. Rather than saying “Out-of-Order,” try something like, “We’ll see you tomorrow!” This might not help a one-off customer, but it lets repeat customers know that the problem will be fixed quickly and that they can still rely on the machine in the future.

You might also consider providing contact information. If customers know they can call or email someone if they have a problem, it makes the experience more personable. It’s easy to forget that there is an actual person behind the machine.

Finally, you’ll want to communicate clearly with the location owner and any other partners you might have. Make sure that any agreements are win-win. This will prevent animosity and ensure that your business thrives because everyone has a stake. 

And clearly define roles and responsibilities. Otherwise, tasks might not get done if one party thinks someone else is handling them. Good communication and organization behind the scenes will translate into better ATM customer service for your users.

2. Listen

A major part of good communication is good listening. You can use an active listening strategy like the LAER method to communicate better with your partners and customers. 

If there is an issue or concern, the first step is to listen without interrupting. Second, acknowledge, verbally or nonverbally, that you understand. Then explore what was said. Repeat what was said in your own words to make sure you got it right, and ask follow-up questions to gain more insight. 

Finally, respond. Respond only after you’re sure you know where the other party is coming from. That way your response is direct, relevant, and fair.

3. Be Proactive

There are many strategies for providing good ATM customer service in the event of a problem or conflict. But if you don’t learn from these mistakes, then you’re wasting time. Good ATM customer service doesn’t just mean fixing problems. It also means preventing them.

You can’t provide your service if your machine isn’t functioning properly. So think about what could go wrong and things you can do to prevent it. How could you prevent or minimize the threat of theft or vandalism? Paper jams? Cash shortages? 

Some problems are easier to prevent than others, but if you at least develop a plan of action for some worst case scenarios ahead of time, you will be able to resolve them a lot quicker. The more prepared you are and the faster you act, the sooner you will be able to continue to provide your service.

4. Monitor Data

Remote online monitoring is one way to prevent issues and learn more about your customers. With online monitoring, you are able to track your machine’s activity from wherever you are. Maybe a camera feed shows something suspicious that you want to nip in the bud. Maybe your numbers aren’t working out and you need to chat with your vaulter.

You can also use online monitoring to track activity trends. This allows you to provide better ATM customer service because you know who your customers are and what they need. 

For example, if you notice that Fridays are heavy transaction days, you want to make sure the machine is fully stocked Thursday night. You might also plan to be available or on call on Fridays so that you can quickly resolve any issues and provide good service to more customers.

You might also track withdrawal amounts. If you notice higher withdrawal amounts than you expected, you might consider adjusting the denominations you offer. Learning from your data and acting on it shows that you care about providing good ATM customer service.

5. Unify Your Team

A bicycle doesn’t work with only one wheel. A car won’t work with only three tires. Similarly, your business won’t function to its potential if all parties aren’t working together.

If you are the only member of your operation, you don’t have to worry about this one (provided you are happy with your ATM service provider). However, chances are you at least work with a location owner, location managers, location employees, or anyone responsible for your machine when you aren’t around. 

Make sure that roles and responsibilities are clearly defined and agreed upon. Then, implement measures to check that everyone is doing his or her part. You might need to offer some sort of training, develop a detailed contract, or even outsource some tasks like vaulting. 

Either way, make sure that everyone involved works together to prevent issues and ensure success for each party. 

6. Maintain a Strong Work Ethic

Having a strong work ethic and being a workaholic are two different things. Remember, you want your ATM business to bring you passive income. But in order to do so, it’s your responsibility to make sure your business (or ATM) is working properly.

The more work you put in at the beginning, the more passive your income will be later on. So don’t cut corners, make action plans, and organize your team. Most importantly, be accessible. 

If, by some chance, something goes wrong, you are going to want to know about it. The quicker problems are addressed, the quicker you get back up and running. If a user has trouble with the machine, and they call the number you posted, make sure you are there to help. If your vaulter has an emergency and can’t fill the machine, that responsibility falls on you.

Don’t worry. You can still go out of town or take a vacation if you need to. Just make sure you leave someone in charge while you’re away so that your business continues to run smoothly.

7. Choose the Right Tools

You can’t provide the best ATM customer service with sub-par tools. If you compromise quality equipment to save a buck, there’s a chance your users will encounter more problems and an out-of-order machine.

Your main goal as an ATM business owner is to minimize the amount of downtime your machine experiences. Because when your machine is down, you aren’t making money.

Aside from the machine itself, there are other tools that can help you consistently provide good ATM customer service to your users and your partners. Whether you want to invest in a particular lock, security cameras, or add-ons like a topper, any decision you make with your customers in mind is going to pay off in the end.

Now, you don’t have to invest in every bright and shiny feature, and you can find quality used or refurbished equipment affordably. What we mean by “choose the right tools” is “choose the right tools for you”. Choose the right tools that serve your customers and your location. This will look different for each IAD.

However, we will recommend that you consider adding remote online monitoring and an ATM wireless device to your toolbelt. Having an ATM wireless device for your internet connection allows you to provide your service more predictably and consistently. The alternative is relying on the location’s internet service provider which could be problematic or a hassle to troubleshoot.

Whatever tools you need to consistently provide good ATM customer service are the right tools.

The Importance of ATM Customer Service

Customer service is your business. Without it, you go broke. You have location owners and users counting on you and your machine. Why should they work with you? Why should they choose your machine? Convenience.

The service you provide is convenient access to cash. If you compromise ATM customer service, your business will lose that convenience factor. An ATM business is a unique business model, but all businesses rely on good customer service to succeed. These tips can help.