Walgreens brings crypto-enabled ATMs to stores

While the news cycle is churning stories decrying the decline of the ATM, stores are embracing ATMs — especially ones that deliver cryptocurrency. One example is Walgreens, which has more than 9,000 stores in all U.S. states, Washington D.C. and Puerto Rico.

NCR Corp. recently expanded its existing relationship with Walgreens to offer its services to nearly all of these locations and will install more than 1,300 Allpoint+ cash-accepting ATMs, offering surcharge-free cash access to customers.

In addition, customers can use the ATMs to purchase cryptocurrency due to NCR's LibertyX platform. With this platform, customers can use a debit card or cash to purchase popular cryptocurrencies such as bitcoin.

These ATMs will also offer NCR Pay360, a mobile app which customers can use to send and receive cash with a single code.

To learn more about the partnership, ATM Marketplace reached out to a NCR spokesperson via an email interview.

Q. Can you give a little background on the history of the partnership?

A. NCR has been executing on bringing everyday financial services to Walgreens guests for more than 15 years. As the owner and operator of Allpoint, NCR is uniquely positioned to support Walgreens' financial services vision to deliver more joyful lives through better financial health. Our new, long-term agreement expands the Allpoint reach into new markets, promises to deliver many new Allpoint+ locations and is expected to expand our LibertyX and NCR Pay360 capabilities to the entire NCR-operated Walgreens fleet.

Q. What are some innovative features of the AllPoint network?

A. Allpoint is the largest retailer-centric, surcharge-free network in the U.S., and offers surcharge-free cash access to over 1,200 issuers, including two of the five largest U.S. banks by deposit, representing more than 70 million cardholders. Allpoint is an important element of distribution for each of our issuers.

• Financial institution branch transformation: Since 2017, more than 4,400 bank branches have closed in the U.S. Transactions will continue to flow from branches to ATMs. This shift in consumer behavior positions Allpoint well as a platform for giving consumers access to financial services in some of the places they visit most often.
• Continued consumer reliance on cash transactions: ATM consumers make an average of 3.8 cash withdrawals and 2.5 cash deposits per month. Allpoint is the only retail-based network to accept cash deposits, via our Allpoint+ network of ATMs.
• Financial services hub: Walgreens can leverage the power and unique capabilities of the Allpoint network to provide more financial transactions that consumers demand. Allpoint provides the platform as Walgreens shoppers seek a physical hub to complete their financial transactions.

Q. How does Pay360 benefit customers?

A. Innovation has always been at the heart of NCR, to meet the evolving needs of the market, including end consumers, retail partners and financial institutions. Our newest innovation, NCR Pay360, supports cardless cash-out and cash-in transactions. These cardless, code-based transactions can support over 30 new product categories, driving higher usage of our ATM estate while helping new companies and organizations find value in ATMs, benefiting the overall ATM ecosystem. Examples include digital wallets and employer and government benefits and rebates. In addition, our exclusive proprietary ATM network terminal software suite brings more control to the overall management of each terminal, improving speed to market, security and analytics capabilities.

Q. Does the LibertyX bitcoin feature draw in a large amount of new customers or existing users?

A. We wouldn't be in a position to share that level of detail on the customer base, but we are excited about the performance and growth we are seeing for LibertyX. LibertyX brings access to bitcoin purchases in a secure and compliant manner at places consumers already visit. At the same time, it brings a new transaction offering to our ATMs, with the potential to bring more foot traffic to the retailers that host these ATMs.

Walgreens did not respond for a request to comment from ATMmarketplace on its ATM strategy.