There are few business partnerships that can be considered a true “win” for all involved, but the partnerships that place ATMs in convenience stores may just be one of them.
There are few business partnerships that can be considered a true “win” for all involved, but the partnerships that place ATMs in convenience stores may just be one of them.
Wawa stores, for example, have ATMs from PNC Bank. Turkey Hill and Sheetz stores also have ATMs from PNC. Speedway recently added ATMs from M&T Bank in 168 outlets, and most other convenience stores will have a bank-branded ATM inside.
The ubiquitous convenience store ATM builds business for both banks and retail outlets. It’s not a big revenue generator for banks, but they gain market reach, brand awareness and convenience for customers – the latter a big selling point for potential new patrons. Stores, meanwhile, say hosting the ATMs boosts their overall image and gives customers another reason to visit and spend money – making it also a stream of indirect revenue.
“Convenience of banking is a strong thing we concentrate on,” said Mary Thomas, vice president in charge of the ATM product group for Buffalo-based M&T Bank. Having ATMs in stores their customers frequent is a big boost to creating that convenience.
While those partnerships provide a service that is used by many, the public often takes for granted that they’ll be there where they need them, when they need them and be working properly.
“The ATM has been around for a long while. People have come to expect that access,” Thomas said.
The benefits of the convenience store relationships are many, said Ken Justice, senior vice president and ATM executive for PNC Bank, which has the nation’s fourth largest ATM network.
While PNC and Wawa do not charge upfront fees for the service, PNC does receive some interchange fees from other banks whose customers access the PNC ATM network. But Justice called those fees a small revenue stream and not the motivation for maintaining the ATM network.
Because, while PNC doesn’t generate a great deal of revenue from customers using the bank’s Wawa-based ATMs, it gains significant market penetration through the arrangement.
“One of the things we like is that a little over half of our ATMs are not at a bank,” Justice said. “The ideal place for an off-premises ATM is a place that is a daily destination.”
