Technavio Announces Top Three Trends for the Global ATM Market Through 2020

Technavio’s latest global automated teller machine (ATM) market report highlights three key emerging trends predicted to impact market growth through 2020.

Technaviodefines an emerging trend as something that has potential for significant impact on the market and contributes to its growth or decline.

“Growing need for ATMs in developing nations is propelling the growth of the ATM market. Governments from these regions are introducing various programs designed to meet the requirements of the rural customers. Government initiatives for disbursing benefits, including food stamps, through electronic machines to reduce costs are driving ATM installations in countries such as Nigeria, India, and Kenya. Using these benefits (commonly called electronic benefits transfer), beneficiaries can access deposit accounts with the help of cards that work at ATMs and POS terminals,” said Abhay Sinha, one of Technavio’s lead industry analysts for new research areas.

Technavio’s market research study identifies the following three emerging trends expected to propel the growth of the global ATM market:

- Investments in bitcoin ATMs by entrepreneurs
- Deployment of ATM machines in off-site terminals
- Advances in technology

Investments in bitcoin ATMs by entrepreneurs

Young entrepreneurs and co-founders of Bitcoiniacs, Gabriel Scheare, Jackson Hudson, and Mitchell Demeter opened an ATM in Vancouver, Canada, on October 29, 2013. This machine built by the US manufacturer Robocoin is said to be the world’s first ATM that transacts bitcoins for Canadian dollars. The ATM is set up in a popular coffee shop, and looks like any other ATM.

Bitcoiniacs is a Vancouver storefront money exchange. The investment in bitcoins will allow customers to exchange bitcoins and cash without the need for human to facilitate the transaction. With the help of the bitcoin ATMs, the customers can get bi-directional functionality, which will enable them to purchase the bitcoin or make redemption of bitcoin for cash.

Deployment of ATM machines in off-site terminals

The deployment of new off-site ATMs in the rural and semi-urban sites is aimed at reducing the cost associated with the migrating transaction from tellers. The reasons for deployment of ATMs also include the rise in the geographical reach of customers. The number of customers is expected to increase significantly, which will also boost ATM use. This will bring about a lot of opportunity to deploy large number of additional cash dispensers in all terminals.

Many banks are deploying more off-site terminals to gain a competitive edge. Many companies like Wincor and Nokas have launched a joint venture to provide deposit solutions, cash management services, and cash-handling optimization for retail operations and ATMs located in off-site terminals. These ATMs are being deployed in different locations that include petrol pumps, retail malls, and high traffic areas. These off-site ATMs offer a wide range of value added services (VAS) like coin dispensing, check deposits, request for check books, cash deposits, mobile top-ups, and last nine transactions mini statements.

Advances in technology

Many top vendors like Diebold and Wincor are formulating strategies for software development companies, financial providers, and integrated service providers to provide the best services. Technology is a key factor, which has changed the ATM market scenario.

Advances in technology and applications are likely to change the retail banking customer's experience. The palm scanning technology makes debit card operations easier. JPMorgan Chase has teamed with Fujitsu to create a palm-scanning ATM that can identify users by their handprint. The scanner uses infrared rays to detect the pattern created by the veins in a user's palm, and verifies their identity using advanced photography techniques. Banks have deployed multispectral imaging biometric authentication, which helps in securitization of the customers so that they can have a smooth transaction. It helps in proper delivery of services by providing authentication to both the user and the service provider.

Win Trust and City National are working on cardless cash ATMs, wherein customers can use their smartphones to withdraw cash from ATMs. For this, the user needs a unique QR code on the phone, which has to be scanned by the ATM. The data transmitted between the smartphone and ATM is saved in the cloud and results in cash transactions. Various companies are collaborating with FIS Global for this initiative. There have been developments in the cashless ATM sector as well, wherein the ATMs issue a QR code that can be redeemed at a later stage.

Browse related reports:

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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