ATM Usage Among Younger Generations
ATMs are a vital touchpoint with consumers, playing a critical role in access to funds, according to the latest ATM Benchmarking Study and Industry Report published by the ATM Industry Association. While credit and debit are important to consumers for larger purchases, cash is, was and will always be a key component in the profitability of convenience stores and other small businesses. Cash is still king when it comes to smaller purchases and ATM availability is one of the leading factors driving profitability for small business owners.
Today’s ATMs come with a variety of enhanced features that tech-savvy consumers, such as Millennials and Generation Z consumers, expect to have easy access to. A 2015 study found that credit offers and mobile banking options have little effect on Millennial cash usage. Starting out in a sobering economy with high levels of student debt, the younger generations prefer cash to better manage their day-to-day finances. Consequently, merchant locations with ATMs draw Millennial and Gen Z patronage.
Multiple polls and consumer surveys show that at least 45 percent of consumers prefer to pay for small purchases, like gas and snacks, with cash. Even the promise of accumulating reward points isn’t always enough to convince customers to whip out a credit or debit card. Having an on-site ATM allows merchants to cater to consumer cash preferences while increasing profitability since consumers are likely to spend a good portion of that cash on-site, as well.
Range of Options
Younger, tech-savvy consumers prefer easy access to funds and the ability to multi-task whenever possible. Merchants that offer high-functioning ATMs are attractive to Millennials and Generation Z because they can one-stop-shop on a small scale. For example, if a convenient store has an ATM with multiple banking options and bill pay, younger consumers are more likely to visit this location since they can check their balance, transfer funds if necessary, withdraw needed cash, pay a utility bill, fill their gas tank and grab a snack all in one stop.
Catering to Cash Preferences
According to an ATMmarketplace article, the difference in ATM use between younger and older generations has more to do with Millennials being digital natives than anything else. Millennials and Gen Z consumers are comfortable with self-service, accustomed to experiences across multiple channels and value convenience. Consequently, Millennials not only desire easy access to ATMs, but express a desire for other amenities, such as the ability to choose multiple denominations.
Despite a variety of payment choices, cash usage remains steady, with younger consumers using cash more than any other demographic. Offering ATM services can be extremely profitable to merchants in a variety of ways – drawing patrons to the business, profiting as they spend withdrawn cash on-site and surcharges collected from the use of the ATM.
To offer ATM services at your business, contact BFC Enterprises today.