Monthly Archives: April 2023

As stores and restaurants attempt to go cashless, they’re installing “reverse ATMs” that dispense stored-value cards in exchange for cash.

Why it matters: More businesses are eschewing cash — a trend post pandemic — but US states and cities are passing laws banning them from doing so, in deference to people who don’t have bank accounts or credit cards.

• Handling cash is also a hassle for retailers, with theft and constant runs to the bank.

Driving the news: Reverse ATMs — also known as cash-to-card kiosks — are quickly being installed in all manner of venues that want to go cashless without flouting the law or turning away the “unbanked,” who represent 4.5% of Americans, per the FDIC.

• Amusement parks, casinos and sports stadiums are taking the lead.
• Reverse ATMs have been installed at most Major League Baseball and National Football League ballparks, plus cashless attractions.
• “Cash digitization” is the term that’s catching on for converting cash to electronic currency — which is increasingly necessary as transit systems and other public accommodations also go cashless.

What they’re saying: “Cash carries a lot of friction, right?” says Naushervan Beg, a partner and business development executive at Wavetec, a Toronto-based company that sells reverse ATMs under the brand name Azimut.

• “Many venues are willing to pay for the machines because for them, the bigger pain point is taking the cash.”

How it works: To use a reverse ATM, a customer feeds cash into a machine and gets a prepaid plastic card in return.

• Most of the machines don’t charge fees to buy the card, though some do (typically $5).
• While some cards are venue-specific, generally you get a Visa or Mastercard that may or may not be reloadable.

Yes, but: Some of the cards carry “dormancy fees” such as a $3.95 charge if the card isn’t used for more than three months — and it may be hard to use up the balance if only a small amount is left.

The big picture: Cities including New York, Washington, D.C., San Francisco, and Philadelphia require merchants to accept cash — as do states such as New Jersey and Colorado — largely because of the potential harm to consumers who don’t carry plastic.

• The rate of “unbanked” households is highest among communities of colour, lower-income earners, and those with disabilities, according to the FDIC.

Between the lines: Reverse ATMs have to be fast and easy to use, particularly at movie theatres, ballgames, and other places where people go for a defined period of time.

• “If I tell you your cash is no longer good and you have to go to the machine and convert it to cards, the experience has to be good,” states Beg.
• By the numbers: A reverse ATM from Wavetec starts at $6,000 — plus extra for servicing the machine, which includes removing the cash and replenishing the cards.

• Merchants can defer costs by running advertisements on the screens.

What’s next: People without bank accounts have been adapting to mobile payment apps, which could mean that reverse ATMs are a bridge technology — or one that will soon be used to load a digital wallet.

• As things progress, “it might not be a physical card” that you receive at a reverse ATM, Beg says. “You can have a virtual card on your smartphone.”

A large number of retailers and hospitality operators in the UK are also cashless, so it will be interesting if they stick to that policy or provide a bridge to consumers who want to pay cash, as I know operators do have an attrition challenge currently due to the policy, and that leakage is not acceptable when every consumer is “Gold dust”.

Several major fast food and convenience store chains have recently announced a big push into EV charging, a trend that could accelerate efforts to expand the USA’s embryonic charging infrastructure.

Why it matters: Automakers are finally getting serious about electrification — yet many would-be EV buyers want more assurances they’ll be able to find chargers when they need them.

Driving the news: Convenience store chain 7-Eleven recently launched its own EV fast-charging network, called 7-charge.

• The network has chargers across Florida, Texas, Colorado, and California so far, with plans to expand into Canada as well.
• Users will be charged based on the energy they consume or the time they spend charging, depending on local regulations.
• 7Charge is compatible with a wide array of EVs — even Tesla’s, though they’ll need an adapter.

Catch up quick: Fast food giant Subway last month announced long-term plans to build car charging oasis’s replete with green spaces, playgrounds and more.

More immediately, Subway is working with franchise owners to install stand-alone fast-chargers at various locations.

• One major Taco Bell franchisee, meanwhile, is rolling out EV chargers at more than 100 of its California restaurants, USA Today reports.

The intrigue: In a press release, 7-Eleven touted its potential to address the charging gap.

• “7-Eleven will have the ability to grow its network to match consumer demand and make EV charging available to neighbourhoods that have, until now, lacked access,” reads the release.

Be smart: Stores that install EV chargers will likely make a decent return on charging fees, just like gas stations take a cut when you fill up your tank.

• And, even with the latest fast-charging technology, topping off an EV takes time — turning drivers into a captive audience for food, drinks, and other goodies as they juice up their cars.
• Those bonus sales could give stores an extra incentive to add chargers.

Yes, but: Franchise chains have only so much control over what individual owners choose to do, potentially limiting their ability to become major players in EV charging overnight.

• Still, if some owners make a handsome profit from EV charging, their peers may follow suit.

The bottom line: As the Biden administration pours billions into incentives for expanding the charging infrastructure, will we see the UK follow suit anytime soon?