Commentary

Time to consider offering a bitcoin ATM?

Although the country continues to cycle between lockdowns and partial business openings due to the pandemic, bitcoin value and interest continues to soar each day. By offering cryptocurrency transactions, services operators and retailers will position themselves ahead of the curve

Image courtesy of iStock.

March 15, 2021 by Marc Grens — Co-Founder and President, DigitalMint

There are countless benefits of expanding into bitcoin ATMs for retail location owners or self-service equipment operators as mass adoption in bitcoin continues to rise among both consumers and financial institutions.

Here are the essential benefits:

1. Increase cross-selling opportunities

Bitcoin users might be more inclined to make impulse purchases at a location because of the all-in-one convenience that a bitcoin ATM offers. For instance, a convenience store customer buying bitcoin from the kiosk could then decide to fill their gas tank and pick up a few snacks on the way out. These cross-selling opportunities bring valuable added revenue.

2. Cutting-edge technology as a differentiator

With bitcoin ATMs, businesses are able to adapt to fintech trends and modernize their service offerings to meet the needs of their consumers. Offering bitcoin positions a retailer or an equipment service operator as a modern brand willing to innovate and adapt to their evolving customer needs.

Additionally, suppose store owners repurpose tablets and smartphones for new POS systems, such as Square, Shopify, Lightspeed, ShopKeep and Clover. In that case, they'll be prepared to pivot to mobile payment solutions, which helps with social distancing measures and provides a "cash register" anywhere the vendor is.

3. Passive income

By integrating bitcoin ATMs, businesses add a new revenue stream without much heavy lifting. When you partner with a bitcoin point-of-sale provider, the most you have to do will be signing along the dotted line. The passive income from ongoing cryptocurrency transactions will add up over time.

4. Appeal to more customers

Bitcoin currently appeals most to the millennial demographic, which could help net a more extensive and diverse customer base. By adding an innovative and modern service like bitcoin, you'll widen your customer base and appeal to a younger target audience while still keeping your loyal customers.

5. Share in bitcoin's popularity

It seems everyone is seizing the opportunity to get in on the cryptocurrency action. Over the last year alone, cryptocurrency ATMs in the U.S. have more than doubled. With bitcoin's value increasing rapidly over the last several months and its popularity rising each day, it's quickly becoming a core financial offering for many businesses. Don't miss out on this tremendous opportunity — bitcoin ATMs can make a meaningful difference to your bottom line.

With mass adoption on the rise among both consumers and financial institutions, the added value of bitcoin ATMs has never been more evident.

Where to begin

As a retailer or an equipment services operator, choosing the right bitcoin provider for your locations is a significant decision and should not be made haphazardly. It might seem like the process is as easy as finding the highest revenue payout, but not all bitcoin providers are created equal. Retailers and equipment service operators should do their research before partnering with a bitcoin provider and weigh all the pros and cons.

If you select a reputable and compliant bitcoin provider, your business will have a new sustainable revenue stream for years to come.

Here are a few key questions to ask your potential bitcoin provider:

What business and compliance experience do the founders have prior to operating their bitcoin company?
Who are the leaders of the company's compliance team, and what banking experience do they have?
What policies do you have in place to prevent conflicts of interest between your management team and compliance team?
What core competencies do the management team outsource, and how do they manage that risk?

Although the country continues to cycle between lockdowns and partial business openings due to the pandemic, bitcoin value and interest continues to soar each day. By offering the latest tech and crypto transactions, equipment service operators and store owners will position themselves ahead of the curve.

Customer Experience