PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Retail ATM Deployers Seek New Revenue Streams Amid Declining Interchange

Mercator Advisory Group by Mercator Advisory Group
April 23, 2013
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

From Digital Transactions:

Interchange rates on ATM transactions are falling and may not have hit bottom yet, so independent distributors of ATMs need to look for additional sources of revenue. That is the conclusion of a recently released white paper entitled, “The Future of Interchange in the United States,” sponsored by the the ATM Industry Association (ATMIA) and Kahuna ATM Solutions.

“While I don’t think interchange will disappear completely, rates could continue to erode even further,” David Tente, ATMIA U.S. executive director, tells Digital Transactions News.

That puts pressure on the independent sales organizations that provide off-premise ATMs to retailers.

“They need to be prepared for the possibility that interchange revenues could continue to fall and they need to look for additional sources of income,” says Bryan Bauer, president of Kahuna, an independent distributor based in Bloomington, Ill.

In ATM transactions, interchange is the fee that financial institutions that issue debit cards pay the ATM owner in exchange for the convenient access to customers’ bank accounts. It is set by the ATM networks. Interchange flows the opposite way, from merchant acquirer to card issuer, for debit and credit card purchases. Various forces have contributed to the ATM interchange fall-off, one of which is pressure by banks and credit unions on the networks to reduce their interchange expenses.

With industry revenues down because of reduced interchange fees and other factors, the need for diversification by various industry stakeholders is critical for ongoing profitability. These challenges hit both financial institutions and independent deployers, and highlight the need for all organizations to be more efficient and productive.

At the core of these challenges is a need to focus on the core business, and consider partnering or outsourcing those tasks that other organizations can handle more efficiently. In many ways, the banking industry is grappling with similar challenges seen in other industries over the last decade or so.

Click here to read more from Digital Transactions.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    legacy infrastructure

    How Modernizing IT Can Help Banks Compete With Fintechs

    February 7, 2023
    Buy Now Pay Later BNPL, B2B BNPL

    B2B BNPL Offers a High-Potential New Chapter in Payments

    February 6, 2023
    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix