Is It Profitable To Start An ATM Business In 2023?

It Profitable To Start An ATM Business In 2023

Starting an ATM business is always profitable. However, whether you will make profits or not depends on the location of the ATM. The rule of thumb is to open the ATM Business in a place where it is crowded. Despite the digitization of almost everything, especially transactions, people are still in need of cash. Hence, you will be able to generate a stream of passive income by starting an ATM business.

In this article, we will discuss the profitability of starting an ATM business in 2023. Once you get an introduction to how to operate such a business, you will get information about its profitability, especially in today’s market. Furthermore, we will also discuss various ways to make money with the help of an ATM business. Finally, you will also learn about the major benefits of starting an ATM center.


Starting An ATM Business – A Brief Introduction

According to, this is how an ATM business works –

The ATM owner (“you”) are the one that’s buying the machine and placing it at a specific venue or place. The venue owner is the person you’ve contacted and negotiated with to place your ATM machine. Lastly, the ATM processor is the company that handles the processing or paperwork to document and allow the ATM to function. These three parties are the ones that will share the fee that everyone pays.

Even if there are three parties involved in sharing the profits, it will still be profitable enough for your case. One of the major things to ensure while starting your ATM center is that the ATM machines need to be placed in crowded locations, especially at an open place where people can see it.

Despite digitization, people in the United States still prefer cash in general as a favored payment option. This is because it is convenient to use, and people have been in the practice of transacting with cash for centuries. With technological advancements, people expect faster withdrawals from ATMs.

How Much Do You Need To Spend To Start An ATM Center?

According to,

Startup costs for an ATM business range from $3,500 to $11,000. On average, an entrepreneur spends about $7,300 to get an ATM business up and running. The majority of this initial capital will go towards purchasing your first ATM, which can range from $3,000 to $10,000 each, depending on functionality. Additional fees and marketing costs will also be in order to start your business entity and build your initial branding.

Your price is also affected by the type of ATM machine you want to start your business with, such as a countertop or a freestanding model. Furthermore, once you buy the ATM, it is your responsibility to maintain it and ensure it works properly. Maintenance will also take away some investments every month. Hence, you will need to consider all the possibilities of spending in such a type of business.

How To Make Money By Starting An ATM Business?

In general, people typically pay a fee ranging between $2 to $3, based on where the ATM machine is located. ATM businesses earn from this extra fee that people pay on every transaction. That is why an ATM business is a type of passive income since one cannot generate a lot of income with each transaction. You can also make profits on surcharge transactions.

According to Business News Daily,

business owners typically don’t receive the whole fee. If you rent the ATM, the business that maintains the machine (fills it with cash, repairs it, etc.) receives some of the money. […] While businesses can make money through the fees, some business owners look for other ways to use ATMs to make money. One of the most common methods is by placing advertisements on the ATM.

You can allow ad agencies to run ads on the placing screens that are at the top of ATM machines. You can thus earn commissions from the company that is placing ads on your machine. This is how you will be able to increase your revenue faster.

What Are The Benefits Of Starting An ATM Business?

You must expect a lot of benefits once you start an ATM business. Since the business is a cash-only business, there are many scopes of profit. All you need to do is place the ATM at a place where there is a likelihood of crowds. This will enable you to make the most of your business. The following are some of the major benefits of starting an ATM business:

  1. You will have increased revenue as you will be able to earn commissions on each transaction. Furthermore, you will also be able to earn from new customers who enter the establishment.
  2. You will also be able to get more commission if you allow brands to run their ads on the top screen of the ATM machine.
  3. You are basically offering customers an easy cash option as a convenience.
  4. You can also buy or lease a machine from various ATM companies, which will also help you with marketing. However, the best option is to always buy a new machine, as you will avail of the warranty.
  5. If you already have a business, you will receive more cash payments if you have an ATM inside your shop or your trade center. You can also drive down the processing fees of credit cards if you install an ATM in your business location.

Final Thoughts

Hope this article was helpful for you in getting a better idea of how the ATM business works and whether it is profitable or not. You can see from this article that the profitability of your business depends on how you strategize your business. In the case of an ATM business, one of the major things you will need to ensure is to place your ATM machine in a crowded location.

Despite the digitization of transitions, there is still a need for cash money. With improved technology, ATM machines are also evolving and are enabling more security as well. Do you have any recommendations as to how to start an ATM business? Share your ideas with us in the comments section below.

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