How to Start an ATM Business

Part 1 - How to start an ATM business - Background

In a world dominated by digital payments, ATMs (Automated Teller Machines) continue to play an important role in our financial ecosystem, proving that physical currency isn’t going away anytime soon.

This opens up a unique opportunity for entrepreneurs to tap into a business that combines convenience with steady returns, offering a way to generate income without the complexities associated with other business models.

Having said that, you should keep in mind that entering the ATM business is not just about installing machines — it’s about tapping into a dynamic industry that blends the reliability of established banking with the future potential of digital and cashless technologies.

Our guide is in 3 parts:

• Part 1 - How to start an Atm business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

Industry Overview

The U.S. ATM services market — valued at approximately USD $7.73 billion in 2023 — is currently experiencing steady growth, and projected to expand at a CAGR of 2.5% until 2032.

This sustained growth is mainly due to the continued use of cash for everyday purchases, the large portion of Americans who do not have full access to traditional banking services, and the rapid spread of cryptocurrency ATMs, which are quickly being adopted across various locations nationwide.

The rise of cryptocurrency ATMs alone has added over 30,000 machines in just a few years, which, together with the surge in multifunctional ATMs offering services like cash deposits, transfers, and even loan applications, has significantly expanded the role of ATMs beyond simple cash withdrawals.

Startup Costs

If you’re considering whether an ATM business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own ATM business?

Well, it depends, and the initial investment for an ATM business can vary widely depending on several factors:

• ATM Machine Cost: You should expect to pay between $2,000 and $8,000 for a standard machine, while more advanced models with additional features can exceed $10,000.

• Installation and Setup Fees: You will need to budget between $200 and $500 per machine for professional installation, in order to ensure that your machines are correctly configured.

• Location Lease or Placement Fees: You’ll either need to pay a flat monthly fee — anywhere from $150 in smaller spots to over $800 in high-traffic areas — or agree to share a percentage of your revenue with the business owner in exchange for placing your ATM on their premises. In some cases, you might even end up with a mix of both, depending on what’s negotiated and the value of the location.

• Cash Reserve: You will need a cash reserve of $2,000 to $10,000 per machine to keep them stocked, depending on how often you plan to refill your ATMs and the expected transaction volume.

• Insurance: You should expect to spend around $500 to $1,200 annually on ATM insurance to cover potential theft, vandalism, or damage to your equipment.

• Maintenance and Servicing: You will need to set aside between $50 and $100 per month for routine maintenance and service calls to keep your machines running smoothly.

• Compliance and Licensing Fees: You will need to budget $200 to $2000 annually, depending on your state, for compliance, licensing, and permits required to operate ATMs legally.

• Transportation: You may need to invest between $200 and $5,000+ depending on whether you plan to use your existing vehicle for servicing and restocking or purchase a dedicated one for your ATM operations.

Note: Cash reserves are essential for keeping your ATMs operational, but it’s wise to plan for more than just the basic amount needed. While $2,000 to $10,000 per machine is recommended for regular transactions, consider setting aside an additional $5,000 to $10,000 as a backup reserve. This extra cushion will help you manage sudden spikes in usage or handle any unexpected cash shortages, ensuring that your ATMs are always stocked and ready for customers.

Earning Potential

You may find this surprising, but the “get rich quick” schemes you see on TikTok or hear about online don’t reflect the reality of running an ATM business.

The first thing to understand is that an ATM business is not a magical source of passive income. While it might seem more hands-off than many other ventures, you’ll still need to handle cash restocking, coordinate with business owners for placement, and perform regular maintenance, so it’s not as “quick” or effortless as it’s often portrayed.

Moreover, when it comes to the “rich” side of the equation, your profits are capped by industry norms and regulations, meaning that you can’t charge whatever you want for transaction fees.

Typically, you’ll be charging a fee ranging from 0.5% to, at most, 2% per transaction. With the industry average hovering around 18 transactions per day, your income relies more on consistent usage than on high fees.

Once you factor in costs like rent for the space, utilities, cash reserves, and maintenance, the return on a $10,000 machine — plus another $10,000 tied up in cash reserves and an additional $10,000 worth of your time and effort — ends up being much more modest than many expect.

Having said that, the reality is that you do have a competitive advantage — at least for the foreseeable future — and this is where many ATM operators make their money.

One of the biggest selling points for businesses to host your machine is that you can lower their costs by encouraging more cash transactions. 

Think about it — a business loses around 2% every time a customer pays with a credit card. But if that same customer withdraws cash from your ATM for just 0.5%, the business not only avoids that 2% loss but also benefits from any revenue share or rent you’ve agreed on.

In other words, the business keeps more profit in-house while still providing a convenient service to its customers — making ATM placement a win-win scenario for the business.

And that’s how you secure the best locations: by clearly showing business owners how partnering with you will save them money, how you’ll handle the logistics, and how they’ll see added revenue without lifting a finger.

That’s also why ATM businesses can be quite lucrative — because you need scalability to succeed, and right now, scaling makes sense for both sides.

With every new location, you increase transaction volume, and the business owner benefits from more customers choosing to use cash. This synergy means you’re not just adding machines; you’re building momentum.

As long as you keep locking in high-turnover spots, you can push up your numbers, partner with the right businesses, and really turn those placements into a steady stream of income.

Note: You can also increase your profits by using your machines for ad placements — placing screens on top of the ATM and selling advertising space to local businesses, adding an extra stream of revenue without additional overhead.

Day-to-Day and Growth

How much does it cost to start an ATM business?

Starting an ATM business typically requires an upfront investment that ranges from $6,000 to $15,000 per machine.

This estimate accounts for purchasing a standard ATM, installation, cash reserves, and other operational costs such as monthly location fees, insurance, and routine maintenance.

Is an ATM business profitable?

That will heavily depend on your location, transaction volume, and the costs associated with operating each machine, such as rent, maintenance, and cash management.

Having said that, broadly speaking, the ATM business can be quite profitable over time if managed well, as machines in high-traffic areas can generate a reliable income stream with relatively low overhead compared to other ventures.

How do I start a small ATM business?

To start a small ATM business, you will first need to identify high-traffic locations and purchase a machine suited to your budget.

Then, you will need to secure all required licenses, negotiate placement terms with business owners, and set up a plan for cash replenishment and maintenance.

How do ATM owners make money if they have to fill it?

ATM owners make money through the surcharge fees charged for each withdrawal, typically ranging from $2 to $3.

While they need to keep the machine stocked with cash, the fees earned from multiple transactions often generate a significant profit.

Part 2 - Is an ATM business the right fit for you?

Part 3 - Action plan to launch your ATM business in 90 days