In the last blog, we learned what a Bitcoin ATM is and how it can benefit businesses. This part of the blog will explain what type of questions arise when the users plan to implement Bitcoin ATM for their businesses –
Do bitcoin ATMs really interest people?
According to coindesk.com, last year in April, during the pandemic, when the public was compelled to stay inside their houses, some bitcoin ATM operators saw an increase in transactions. Forbes also stated that Google marked Bitcoin-related searches speculated that ATM operators and people were rigorously researching for the use and viability of Bitcoin ATMs.
Is the functioning of Bitcoin ATMs and traditional ATMs similar?
Bitcoin ATMs and traditional ATMs are two different things, but their working pattern remains the same. Bitcoin ATMs allow the customers to use cash to buy Bitcoins and let customers sell Bitcoins, receive or invest cash, and have it sent to someone’s Bitcoin wallet.
Does Bitcoin ATMs help earn higher commission than traditional ATMs?
As compared to a traditional ATM, the commission earned on Bitcoin ATMs is much higher. According to Forbes, the average industry rate ranges between 10% and 15% for operators, while the average volume per machine may be USD 12,500 or higher per machine. Depending on its location, an average Bitcoin ATM may actually pay for itself in 6 to 14 months.
Is it possible to use and convert a traditional ATM into a Bitcoin ATM?
It is a difficult task, but not an impossible one. The traditional ATM operators need to find a company that has a Bitcoin debit card ATM software integration. An article in Coinsquare states that some organizations have already developed software to retrofit ATMs. Such a facility from the organizations enables them to sell cryptocurrencies through a customer’s debit card without upgrading the machine’s hardware.
This doesn’t change the ATM into a dedicated Bitcoin ATM, but it can help operators check if there is a desire and want for cryptocurrency in specific locations.
What other measures do operators take into account while purchasing or integrating software for a Bitcoin ATM?
Look for a good legal partner with a crypto-friendly bank. There is a lot of regulatory compliance to keep track of, and that’s the reason why Utoday.com suggests finding a legal partner who understands the area and jurisdiction where a Bitcoin ATM will be stationed and a bank that is comfortable managing cryptocurrency businesses.
How many Bitcoin ATMs are present around the world?
According to Statista.com, there are nearly 14,000 Bitcoin ATMs worldwide as of January 1, 2021. The same data reveals, the US holds the highest number of Bitcoin ATMs, followed by Canada, the UK, and Austria.
Bitcoin ATMs are mainly of two types – the basic one allows users to purchase bitcoins, while the more complex one lets them buy and sell the virtual money. And when it comes to complex ATMs, only the particular ATM owner can use the ATM.
How beneficial does it prove to have a Bitcoin ATM?
Andrew Barnard, CEO and Founder of Bitstop, states, “Bitcoin ATMs are a strategic complement to traditional ATMs because traditional ATMs are specialized cash dispensers and Bitcoin ATMs are specialized cash acceptors.”
Bitstop is a Miami-based Bitcoin technology company that works toward building infrastructure and tools and supplies services that make bitcoin more easily available to operators.
“An operator can scale and build up a valuable business that can complement a traditional ATM operation and diversify their portfolio by owning and operating Bitcoin ATMs,” Barnard said in an interview with ATM Marketplace. “It will require more capital investment and there is a learning curve, but operators have full control and ownership of not just the Bitcoin ATMs, but of the merchant relationships and data.”
How does the revenue share partnership work with Bitcoin, and why is there a need for a dedicated Bitcoin ATM operator?
“Bitcoin ATM revenue share is a great way to ‘dip your toes in the water,’” said Barnard. Some Bitcoin ATM operators extend a revenue share program for traditional ATM operators. Although Barnard said that might be called a “partner program” or a “platform-as-a-service, it’s essentially the same thing with varying levels of control.”
An operator shares his locations and merchant relationships and also the data from their traditional ATMs. After installing a Bitcoin ATM, the Bitcoin ATM operator will be paid a monthly fee. Many of these programs might require an ATM operator to buy the Bitcoin ATM, but it becomes difficult to operate owing to banking and compliance rules and standards.
“The advantage to choosing a revenue share or partner program is you can get started quickly,” Barnard said. “The tradeoff is that there will be a significant loss of control and a lot of trust is required. By outsourcing merchant relationships to a Bitcoin ATM operator, you take a chance that the operator may or may not provide the same high service standard, communication and transparency as the traditional ATM operator always has.”
Thus, anybody who wishes to expand their businesses in the cryptocurrency world can easily do that if they fully understand it. The above data can help investors solve all their queries in no time.
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