By Bob Landry,Vice President,Mercator’s Banking Group AdvisoryServices
Cardtronics has been rolling up other independent ATMoperators and adding major banks and retailers to their impressivecustomer list over the past 10 years.With 33,700 machines they arethe leading operator of ATM and cash machines in the world with aportfolio installed across the US and in the UK andMexico.
Adding Kroger is a tremendous accomplishment.
“The Kroger Co., one of the nation’s largest food anddrug retailers, has entered into a multi-year ATM managed servicesagreement with Cardtronics USA, Inc. Cardtronics will providecomprehensive ATM management services in approximately 800 Krogergrocery and convenience store locations, including ATMinstallation, complete cash management, maintenance, customerservice, monitoring and transaction processingservices.”
The ATM business, once the exclusive domain of banks,bifurcated into two businesses in the mid-1990’s with the advent ofATM surcharging that provided the foundation for merchants to addcash dispensing to their product and service offerings.Banksinitially participated in the new market, but were driven out bylow cost ISOs that were able to make relatively low transactionvolumes profitable by offering a package of low cost cashdispensers, PC-based authorization systems, and dial-upcommunications.Cardtronics has been successful in bringing thesemarkets back together by bridging the small merchant, major chain,and banks segments of the market.They now have over 11,600 bankbranded ATMs and offer surcharge-free acceptance of bank debitcards at their national Allpoint Network.
The 800 machines included in this agreement may be justthe tip of the opportunity iceberg.
“Cincinnati-based Kroger is the nation’s largesttraditional grocery retailer, with 2,470 supermarkets andmulti-department stores in 31 states under two-dozen local banners,including Kroger, City Market, Dillons, Jay C, Food 4 Less, FredMeyer, Fry’s, King Soopers, QFC, Ralphs and Smith’s. The companyalso operates 779 convenience stores, 375 fine jewelry stores, 909supermarket fuel centers and 40 food processing plants in theUnited States.”
As Cardtronics continues to add scale, reliability, andcapabilities they have the opportunity to consolidate the bank ATMdriving business now controlled by a few bank vendors and the largebanks which still drive the majority of their own machines.Banksare more open to outsourcing than ever before and they have a newchoice that can offer lower costs and other advantages not possiblein proprietary networks
Read fullarticle:Kroger in Cardtronics ATMManagement Services Deal