What role will cryptocurrency play with ATMs?

Cryptocurrency is no longer a niche market, it is now a household name. Whereas before bitcoin ATMs were rare, they are now popping up everywhere, as all demographics begin to embrace bitcoin during uncertain financial times.

Bitcoin ATMs present a key opportunity not just for customers but also for retailers, since they can often boost both their bottom line and their brand by deploying one of these machines.

To learn more about how cryptocurrency is impacting the ATM industry, ATM Marketplace spoke with Marvin Bowers, assistant VP of retail sales at Hyosung, an ATM provider.

Q. What do you see as the biggest cryptocurrency trends?

A. It is really interesting that cryptocurrency usage is trending up in almost all demographics. Yes, it's more well-adopted with millennials looking to leave legacy banking due to high fees. But… 25% of U.S. households are still underbanked. Crypto solutions at the ATM or kiosk are an inexpensive and effective form of money remittance. And finally, the general public has the ability to pay online merchants and a fast-growing group of brick-and-mortar retailers.

Q. What is Hyosung's history with cryptocurrency?

A. At Hyosung, we have worked with several providers of crypto-based transactions to bring their particular transactions to our hardware in the U.S. As the trend toward digital currency continues, we will continue to develop touch-worthy products to keep up with market demand.

Q. What are some cryptocurrency services you provide?

A. We have worked with several transaction providers including Liberty X, B4U, Coinsquare and others.

Q. What are the primary benefits for retailers to host ATMs that offer bitcoin or other cryptocurrencies?

A.First, it's a revenue driver to the ATM. In a heavily-saturated retail ATM market, it's important to provide additional, useful, transactions at as many locations as possible in order to maximize revenue.

Q. What do you see as the future for blockchain/cryptocurrency?

A. I have seen estimates as high as $700 million annually for the U.S. cash-to-cryptocurrency volume. Most analysts believe that, although volatile, digital currencies are here to stay and a viable investment vehicle. So, while there are some regulatory issues and questions around crypto, it sure seems that the overall projection in the space is very positive.

Q.How have these cryptocurrency offerings helped your business?

A. Bringing an additional transaction to our machines has been a boost for revenue, especially this year with the amount of news coverage around crypto and the economic stimulus payments which caused a rise in ATM transactions overall.

Q. What advice would you give to other companies looking at using a bitcoin ATM?

A. Do a bit of research and try and determine which applications work in the areas you serve. There are many offerings and choices in the market that all have different advantages. It absolutely is worth the research to be able to serve the community with a unique transaction while increasing our revenue.