How Profitable is the ATM Business
The ATM business can be extremely lucrative if done right. As cash continues to be an essential part of the economy, operating ATMs in high-traffic areas can generate steady revenue streams with relatively low overhead and maintenance costs. But how profitable is owning ATMs actually? I will break down the economics of running an ATM operation.
Upfront Costs – Purchasing and installing ATMs
The upfront investment for starting an ATM business largely consists of the cost of the actual ATM. New ATMs typically cost between $2500 to $4,500 per machine. If buying used ATMs, prices range from $500 to $2,000, but we do not recommend this option for new ATM owners. On top of the machine, you also have costs associated with shipping, wifi connection boxes, installation tools, supplies, and the cash to fill the ATM. All things included, expect to spend between $4k to $8k to get the first ATM operational.
Revenue Streams
The main revenue stream from owning an ATM – is the surcharge fee. The surcharge fee is paid by the ATM user and is the price to withdraw cash from the machine. This typically ranges from $2 to $5 and the owner gets to keep the full surcharge amount minus the amount you share with the business owner.
A key factor in profitability is the total monthly transaction volume through the ATM. This depends heavily on population demographics, foot traffic and location. Some example numbers:
Average ATM: 100 – 150 transactions per month /per machine
Revenue around $250 – 400 per month /per machine
High Traffic Site: 250+ transactions monthly /per machine
Revenue over $500+ per month /per machine
Expenses
ATMs have relatively low maintenance costs. On average, you will spend around 20 – 50 per machine per month. This includes monthly fees such as your wifi provider, supplies.
In Summary
The profit from operating an ATM business comes down to maximizing transaction volume while controlling costs. While owning one ATM won’t make you rich it will provide you extra passive income. ROI and profit margins from the average ATM business can exceed 30% once you are past the breakeven point on the initial machine investment. With the right strategy and execution, the ATM industry provides outstanding economic opportunities.
Buy An ATM
We provide leading ATM models from renowned manufacturers such as Hyosung and Genmega. These reliable and user-friendly machines help create smooth, hassle-free transactions for your customers.
ATM Locations For Sale
Looking to buy an ATM Location? Greenpoint ATM Solutions can help. We actively sell new ATM placement contracts.