NEEDHAM, Mass.-ATM operators could benefit from offering prepaid wireless airtime at U.S. automated teller machines, according to new research from financial services company TowerGroup.
According to TowerGroup, non-financial electronic transactions are being aggressively explored as possible revenue streams for ATMs. At the same time, wireless carriers, including AT&T Wireless Services Inc., Verizon Wireless and Virgin Mobile USA, are introducing prepaid wireless phone plans.
“The attention being paid to mobile top-up at the ATM is important, since its rise will lead to a significant incremental ATM revenue stream over the next five years,” said Ed Kountz, senior analyst at TowerGroup and author of the report. “However, prepaid mobile is itself indicative of a broader trend: the rise of new types of content available at the ATM and elsewhere, whose purchase can be partially or totally transacted outside of the established financial services payment networks.”
TowerGroup expects 7 percent of top-ups in 2007 to be conducted at ATMs, generating $124 million in annual revenues for ATM operators.
