Cash Is Still King: ATM market research '2023

Bridging digital money
with the material world
ATM-as-a-Service
O2O: online-to-offline connection
for 350+ digital banks
Analysis and research by Vladislav Solodkiy linkedin.com/in/vsolodkiy
https://l.Nansen.id/smartATM
Cash May Not Be King, but It’s Still Royalty

83% of users
83% of users7
3
MEA
$13M
users per ATM, k
$3M
Europe &
Central Asia
North
America
$9M
$3M
EAPAC
$1.8M
LATAM
$2.5M
South Asia
A
T
M
2
cash
p
e
r 1.3M
East Asia
& Paciﬁc
ATM per
branch
0.6M
Europe &
Central Asia
0.5M
North
America
0.3M
LATAM
0.1M
MEA
0.2M
South Asia
ATM4
of
#
ATM is the leading
bank touchpoint for
Cash Still King
In an Increasingly Digital World
Today’s customers expect immediate access to their money.
Quality ATM customer experience drives customer loyalty.
wsj.com/articles/cash-may-not-be-king-but-its-still-royalty-11580466602

We are a global ATM network designed to
bring ATM services to the Digital Financial Institutions (DFI)*
and their users in a personalized and affordable way:
We help digital banks meet their customers
where they are
2
* — Digital Financial Institution (DFI): any company engaged in the business of dealing with ﬁnancial and monetary transactions such as deposits, loans, investments, and currency exchange.
No cash access fees
All your DFIs in one ATM
Digital branch experience
What if we could create an ATMaaS-network?
Worldcoin and other digital identity startups don't need to create Orb or
other gadgets for high-quality biometric verification (retina and fingerprint scans).
Digital banks, e-wallets, and crypto exchanges don't need to build their
own ATM networks - there's a convenient partner with good APIs and low prices.
Including card-not-present UX.
Banks reduce expenses on card issuance and delivery - they are printed
for the customer right on the spot.
ImmigrationPassport desks and DMV don't need to print&deliver ID cards.
VTM (video-teller-machine) live experice.
We help digital banks meet their customers
where they are
https://l.Nansen.id/smartATMh

⅓ .
in the US12
Most transactions
in emerging markets
are made in cash10
80%
88%
of consumers still carry cash14
¾.
in Europe13
South Asia
Sub-Saharan Africa
MENA
Europe, APAC
Central Asia
LATAM
Despite the buzz around rising cashless
payments9
, developed economies are slow
to adopt them10
while emerging markets
continue to be heavily cash-dependent11
Enforcement of cash acceptance on regulatory
level15
in the US, UK and Europe, for ‘Preserving
cash access is essential for inclusive payments’16
$4.3T in cash
spent in POS
globally in 20201
4
$436T cash
in circulation
globally in 20202
$130B.
cash-on-delivery.
e-commerce1
Cash is here to stay
even under pressure
avg 5 ATM
per branch3
(geographically
uneven)
50% of europeans .
face challenges with .
cash withdrawals13
$4.3T in cash
spent in POS1
globally in 2020

$80k
CAPEX
$30k
CAPEX
cash drain
Primary cash source for users
$400,000+
cash is withdrawn
every second each year20
800
average ATM
visits per month19
5
withdrawal
-only
+automated
deposit
21k transactions
per ATM per month17,18
..$30k
..OPEX
$10k..
OPEX.
ATM can cost
up to 35%
DFI OPEX p.a.18
-$11,040 p.a.
hardware depreciation21
+7% p.a.
maintenance costs18
+11% p.a.
cost of cash funding18
up to 10%
of total OPEX go to
cash operations18
5 in-house ATMs cost .
~$250k CAPEX .
~$900k OPEX p.a.22
up to 279%
In losses#
$30k
CAPEX
$30k
CAPEX
End-user Any FI
is a cash drain for banks

Paying non-transparent
subscriptions to services
with immeasurable ROI
6
Cost saving strategies work
Joint ATMs (closed partnerships)23
costs distribution
Cash recycling (in new ATMs)8
-$2,340 p.a. per item7
ATM Maintenance outsourcing8
-30% of OPEX
Full-scale ATM outsourcing8
-80% of expenses (no CAPEX, less OPEX)
only partially
Digital banks’ goals
Save money on hardware
while optimizing the costs
on maintenance
Maximize ATM presence
while expanding the set
of ATM services
Fully depending on
providers’ markup on
hardware usage
Non-stop revamping of constantly
depreciating hardware with new
functionality always costing more
Struggles
Launching an expensive ﬂeet
of machines in all already
ATM-saturated locations
Current optimizations

Open API
The network is completely open
for all DFIs to connect to and use
One Network For All
End-users can access ANY DFI
from ANY one of our machines
Pay As You Go
DFIs within our network enjoy usage-
based pricing, without subscriptions
Uniform At No Extra Cost
All machines provide the same
functionality for the DFIs to set up
7
In light of branch closures, banks want
to focus on ATM renovation & increasing
ATM presence to deliver new services24
6
Universal Global Presence
All the modern perks (BioID, contactless, etc.)
Customized UI for each DFI
ce
ATM as a full-service 24-hour branch25
fully automated and provides a safe space for both
digital and personal interactions with a digital bank
ATMaaS point is the future
borderless
VTM (video teller machine) - virtual Interactive tellers:

8
All network participants have complete
control over the UI after the veriﬁcation
Various veriﬁcation methods allow for
multiple usage scenarios and demographics
Easy interface and KYC process for the
seamless CX and API SDK for the DFIs setup
Effortless usage
Optimized for Card-Not-Present
Customized screen
Your universal
Point-of-Banking
Get cur.nc
ATMaaS points
In Indonesia, the ATM
market was conquered by
the "local Uber", GoJek -
you can deposit or withdraw your cash via a motorcycle driver or taxi,
and they will deliver it to
the nearest partner bank
branch. What about
electric car or bus as an
ATM?
Rethinking the ATM form factor
Did you know that due to the development of crypto and the
legalization of the cannabis industry worldwide, there has been
an increase in the sales (and production) of armored vehicles
(and safes) for the transportation and storage of cash? How
about a "Tesla in the world of armored vehicles"?
biometric-first: face-, retina-,
fingerprint-, palm-, voice-
recognition
integrated printer-embosser for
instant printing of bank and ID
cards
remote video calls for live
verification and enhanced customer
support
APIs for any digital bank or wallet
— unterface and UX customization
ATM-as-a-service: plug-and-play +
pay-per-use (digital banks&wallets)
card-present and card-not-present
(NFC-, QR-) transactions
and even O2O-voting machine (poll
kiosk) for elections

End-user authenticates through various KYC options The network is fully maintained
Open API
How it works
9
User<>FI
matching
oint
End-user
Working capital
provider
Maintenance
service provider
Cash management
service provider
FI outside the
network
FI-customized UI
Deposit Withdrawal
Other
functions
Payment gateway
(Visa, MasterCard,
UnionPay, JCB
AliPay, etc.)
fee
fee
fee
A.ID KYC/AML solution
(partner)
ATMaaS
ATMaaS network
ATMaaS network connects the user with all providers and their services
ATMaaS UI

Coverage Ease of access Functionality Setup diﬃculty Pricing model
Proprietary
ATMs
Extremely
scarce
Hardware-
dependent
Hardware-
dependent
From the
ground-up
Very expensive
ATM
provider
Customizable
(additional fees)
Traditional
(card)
Customizable
(additional fees)
Assistance Subscriptions
‘Virtual’
(POS) ATMs
Limited by
partnerships
Easy
(POS+app)
Withdrawal-only N/A N/A
Global
Card, NFC,
Biometric ID
Deposit, Withdrawal, Virtual
Teller, built-in card embossing
Plug-n-Play API,
SDK
Pay-per-use
Competition falls short
10
institutions and pricing models
No other solution was created with Digital Financial Institutions in mind
Case study: Allpoint
Cur.nc A
Network
ATMaaS

71%of digital bank users
demand ATM service31
11% values it the most
39M users
globally, 201927
50%of remittance
pickups are in cash33
82% of FIs want to shift
from branches to digital servicing35
Local
bank branches
Target Market
Digitizing otherwise
to-be-closed 30%6
of
branches3
of retail banks
and credit unions5
Digital banks
Digital banks seize
opportunity in emerging
markets, differentiating
by targeting speciﬁc
customer segments28
300+29 200000+
11
Crypto
exchanges
Opening cash services
for crypto TA
500+
Other DFIs
MTOs, EMIs, IFEs
and other
cash-amenable
ﬁnancial institutions32
4000+
avg. bank branch OPEX .
-$918k p.a.34
Foreign FIs
Enabling digital market
entrance to the FIs from
other locales
490000+
E-wallets
Enabling easier
cash-in/cash-out for a
yearly spend of
$5.5T30
70+
Worldcoin, Nansen.ID,
TBD, and other digital
identity startups

Market Advantage
789M
Inter-regional travels yearly36
12
44
digital bank
46
digital bank
74
digital bank
37
digital bank
34
digital bank
21
digital bank
Difference in payment systems,
bank coverage, and FX fees
For the data sources for this map and further see Sources #1, #2, #3, #27, #28, #29, #39
DIGITAL IDENITY IS THE NEW FINTECH
The Indian project Aadhaar has already practically shown how
introducing a digital identity (not for hipsters and crypto-
enthusiasts) for the poor and homeless can not only address the
issue of converting documents from offline to online but also
distribute financial and other aid more efficiently and monitor its
expenditure.
Also, as shown in the Netflix documentary "Whose Vote Counts,
Explained," it makes the (incredibly expensive in the U.S.)
elections cheaper, faster in terms of organization and vote
counting, more transparent in the count, engages more people in
voting, and increases the (very low in the U.S.) turnout.
Difference in payment systems,
bank coverage, and FX fees

13
Cash usage at POS, % trx
Out of all payment methods,
cash has the highest share of
usage frequency at Points-of-Sale
globally (30.2%)1
Digital is growing, but why is cash still the king?
This situation is often called the
"currency demand paradox."

14
≤5%
5%< ≤10%
10%< ≤15%
15%< ≤20%
>20% e-wallets
adoption
2.1B e-wallet users globally
Developing nations account for most of that
growth: China and India alone account for 70%
of all e-wallet users; Africa and the Middle East
for another 12%.37

≤5%
5%< ≤10%
10%< ≤15%
15%< ≤20%
>20% e-wallets
adoption
15
40
33
# of DFIs in the country
319 Digital banks in the world
UK, Japan, Sweden, France, and Brazil
are the most advanced DBs markets29
21

≤5%
5%< ≤10%
10%< ≤15%
15%< ≤20%
>20% e-wallets
adoption
16
40
37
21
44
digital
banks
46
digital
banks
74
digital banks
34
digital
banks
37
digital banks
21
digital
bank
145 million customers by 2024
60M in North America and Europe now
We expect this growth to continue at a
CAGR of 25% through 202438

40
17
≤5%
5%< ≤10%
10%< ≤15%
15%< ≤20%
>20% e-wallets
adoption
37
21
44
digital
banks
46
digital
banks
74
digital banks
34
digital
banks
6M
20M
32M
4.6M
7.2M
19M
37
digital banks
21
digital
bank
Foreign visitors preferring
Card-not-Present payments
Internal demand on the target markets:
High number of Digital banks
External demand:
A lot of visitors from locations with high
preference for digital payments
biometric-first: face-, retina-,
fingerprint-, palm-, voice-
recognition
integrated printer-embosser for
instant printing of bank and ID
cards
remote video calls for live
verification and enhanced
customer support
APIs for any digital bank or wallet
— unterface and UX customization
ATM-as-a-service: plug-and-play +
pay-per-use (digital
banks&wallets)
card-present and card-not-present
(NFC-, QR-) transactions
and even O2O-voting machine
(poll kiosk) for elections

Scaling opportunities
Scaling
Hardware Software
Virtual Teller & onboarding
Rethinking the ATM as Point-of-Bank
by digitizing processes and enabling
human contact when needed
Satisfy crypto
(582 operators41
run ~17,000 CryptoATMs
globally42
, >80% in North America#
)
Contactless KYC
contactless ATMs are up 26% percent in 2019,
+16% in the US alone, while
ATM NFC readers — by +86% globally40
Built-in Card Embossing
Only print physical cards on-demand,
supporting the switch from plastic to digital
20
Last mile to Crypto and DID
Bank card embosser printers have gotten so small
and affordable now that you can integrate a
printer directly into an ATM (kiosk) within its
casing — and print a card for the customer right
there! Producing an Aadhaar card, state ID, or
BRP-card uses the same technology as printing a
bank card (magnetic strip + chip + NFC)

Usage-Based Pricing
Movement of funds is charged only with a .025%
network access fee per each trx
Out-of-Network Transactions
Transactions by users of FIs that are not part
of our network will come with a competitive
surcharge based on the region of the ATM
Monetization
21
End-users
Transaction
processing
Additional
services
Network participants
DFIs, small local banks,
e-wallets, crypto exchanges
Location providers
Retailers that are often
ATM deployers themselves
User Onboarding
Compliance checks for new users that
are not registered in the A.ID database
Live teller (VTM)
Live video chat functionality which enables
direct contact between client and bank
Physical card printing
Future technology for seamless onboarding of
new users or for existing users who have only
digital cards
ATM services & management
ATM Software, Hardware with pre-installed software,
monitoring and maintenance, and cash management
Revenue sharing model
Transactions dealing with the movement
of funds will incur a .2% surcharge
Digital Branch Transformation
We transform local branches to the in-ATM
Points-of-Banking instead of an oﬃce

26
Forward-thinking funds
actively invest in many
ﬁntech verticals
Funds
e
rapidly evolving capital-rich industry
Digital Banks
For the references see Sources #28, #29, #43

Open API and modern UI
to serve all types of digital
institutions and currencies
Modular and flexible hardware
for network flexibility and
ease of deployment
last-mile
31
Borderless
ATM Network
Direct transactions with the
bank accounts and e-wallets
to avoid intermediaries and
transaction limits
The last-mile touchpoint for the digital
money ecosystem
Full service stack beyond any ATM
incl. cash in/out, card-not-present, new card
print-outs, biometrics and documents
verification, remote connection with bank
associate, and many more
* Airlines & hotel check-in, border passport control
* visas&ID biometrics & live verification
* bank and ID cards instant issuance
* (online and) offline voting (poll) machine
- card present
- card-not-present
- CRYPTO
bank and ID cards instant issuance
retina-, fingerprint-, face-, palm-, voice-
recognition and video live verification

1. The 2021 Global Payments Report, Worldpay & FIS, 2020
Global Payments Report 2020, Worldpay & FIS, 2019
Global Payments Report 2019, Worldpay & FIS, 2018
Global Ecommerce 2020, eMarketer, 2020
Retail market worldwide - Statistics & Facts, Statista
Latin America: retail sales value 2017-2022, Statista
2. Cash in circulation, Bank of International Settlements, 2019
Narrow money M1, OCED, 2019-2020
Money Supply M0, M1, M2, M3 | Country ranking 2020-2021, Take-Proﬁt.org, 2021
3. Internal research based on: World Bank Data: Commercial bank branches (per 100,000 adults),
Automated Teller Machines (per 100000 adults), Population (total), Proportion of adults — World Bank, 2019
Bank accounts per 1,000 adults, Global Financial Development, 2017
Number of retail bank accounts, UK 2017, Statista, 2019
4. ATM Banking: It's Not Just About Cash Withdrawal Anymore , Mercator Advisory Group, 2019
5. Internal research based on:
IbisWorld Industry Reports: Global Commercial Banks, Credit Unions in the US & Canada,
Cooperatives in Germany, Building Societies in the UK — IbisWorld, 2019-2020
Fitch Fundamental Data — Fitch Solutions, 2020
6. Quarter of bank branches will close in coming three years, Consultancy UK, 2020
Will Your Bank Branch Close Permanently Because of COVID?, US News, October 2020
Analyst: 20,000 bank branches or more could close after COVID-19, Post.Gazette, July 2020
This is the chance your local bank branch will close by July, QUARTZ, May 2020
Bank branches are closing faster in underserved areas, Citymonitor, June 2020
7. Self-Service Reloaded, Diebold Nixdorf, 2020
8. Making the Case for ATM Managed Services, ATM Marketplace & Elan Financial Services, 2017
9. World Payments Report 2020, Capagemini Research Institute, 2020
10. The 2020 McKinsey Global Payments Report, McKinsey, October 2020
11. Payments go (even more) digital*, BIS Commentary, 2020
12. 2020 Findings from the Diary of Consumer Payment Choice, (Report, Supplement), Federal Reserve Bank of San Francisco, July 2020
13. Study on the payment attitudes of consumers in the euro area (SPACE), European Central Bank of Europe, December 2020
14. Leverage Your ATM Fleet to Meet Consumer Demand for Enhanced Service Delivery (Whitepaper), ATM Marketplace & Fiserv, March 2021
15. Five Challenges for the Future of Cash, Cash Essentials, December 2020
16. Shifting the Focus: Digital Payments and the Path to Financial Inclusion, Federal Reserve Bank of Atlanta, September 2020
17. Locational Study of ATMs in the US by Ownership ATM Analysis Based on National Data, 2020
18. How Cloud ATMs Help Improve Customer Service , PYMNTS, 2021
19. ATM Marketplace Article “50 little-known facts about ATMs”, ATM Marketplace, June 2017
Sources
References to materials
used in research
29

Sources
contd.
30
20. The ATM in 2019 and it’s digital first future, NCR, January 2019
21. ATM Outsourcing: Turning Costs into Profits, FirstData Insights
22. How much does an ATM cost?, Quality Data Systems, April 2019
Hauling cash, replacing cards, fixing ATMs: the stubborn costs banks can't erase, Reuters, July 2016
23. How to Manage ATMs in the Digital Age - 3 Strategies, Celent, November 2020
24. 2020 ATM & Self-Service Software Trends, ATM Marketplace & KAL, September 2020
25. 2021 is change is on the horizon: The future of the ATM, Payments: Cards and Mobile, January 2021
26. Interactive tellers can cut costs and drive revenues, NCR, August 2015
27. The Global Neobanks Report, Insider Intelligence, 2020
28. The Rise of Challenger Banks, Financial Technology Partners, 2020
Complete list of neobanks in the world in 2021, NeoBanks.app, 2021
29. Neobanks 2021 - Shifting from Growth to Profitability?, Exton Consulting, 2020
30. Digital Wallets ~ Transforming the Way We Pay?, Juniper Research, 2020
31. WHAT IS A BANK?, PYMNTS, March 2021
32. Sending Money Home: Contributing to the SDGs, one family at a time, IFAD, June 2017
Electronic Money Institutions (EMIs), TheBanks.EU
LICENCIAS POR TIPO DE INSTITUCION, Government of Puerto Rico, 2021
33. International Money Transfer Services: Lean and Hungry, Save on Send, March 2021
34. Meet OneBanks: the fintech picking up after banks' branch closures, Fintech Futures, July 2020
35. Retail Banking 2020 Evolution or Revolution?, PwC Retail Banking, 2020
36. Global and regional tourism performance, UNWTO, 2020
37. Southeast Asian Consumers Are Driving a Digital Payment Revolution, BCG, 2020
38. Emerging Tech Research: Fintech Q2 2020,, Pitchbook, 2020
39. Global Ecommerce Update 2021 - Insider Intelligence Trends, Forecasts & Statistics, Emarketer, 2021
Cashing Out: Economic Growth through Payment Digitisation, MasterCard, 2020
The rise of digital and mobile wallet: Global usage statistics, Payments: Cards and Mobile, 2019
Digital 2021: Global Overview Report, Country reports (Library), We Are Social & Hootsuite, 2021
Smartphone penetration rate by country 2018, Statista, 2021
Moblie subscriptions, World Bank, 2019
Outbound tourism, OECD statistics, 2019
U.S. Travel and Tourism Statistics, National Travel and Tourism Office, 2019
United States Travel and Tourism Industry, International Trade Administration, 2018
Tourism Flows: Global and regional tourism performance, arrivals to Brazil, Germany, China, India, France, Colombia, UNWTO, 2020
Japanese outbound tourists Statistics - Tourism Statistics, JTB Tourism Research & Consulting Co., 2019
Tourism in Columbia (2018), Brazil (2016), China (2018), France (2018), ITS at a glance (2020)
40. A history of ATM innovation, NCR, January 2021
41. Top 10 Bitcoin ATM Operators, CoinATMradar, 2021
42. Bitcoin ATM Locations Worldwide, CoinATMradar, 2021
43. Investors databases:
Crunchbase, Angelist, Pitchbook, Craft, Owler, etc.
Reports and publications:
The Digital Banking Ecosystem 2020, Neo And Challenger Bank
Market 2020 – 2027 2021, Digital disruptor banks in the UK
2021, 50+ Global Mobile Payment Stats, Data & Trends 2020,
Global E wallet market 2021, US Mobile-wallets Report 2020,
Mobile Wallet Market Size & Share, Digital Wallets in Latin
America, Why e-wallets are gaining popularity in Latin America,
Number of customers of selected fintech companies in Brazil
2019, E-wallet Payment Option - How's the Scene in the US,
Europe, and Asia Pacific?, State of the Industry Report on
Mobile Money 2021, Deloitte Digital Banking Benchmark

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