Bitcoin buy at atm

There's been a lot of buzz in the industry about Bitcoin and Bitcoin ATMs. With the coronavirus pandemic affecting many operators in the ATM industry, this may be a new revenue source to consider. ATM Marketplace put together the most popular questions and answers in regard to Bitcoin ATMs and what you need to know before you invest.

How long have Bitcoin ATMs been around?

The Bitcoin industry is still a relatively young faction with the first machines popping up approximately seven or eight years ago, according to the Seattle Times.

How many Bitcoin ATMs are there?

The are approximately 7, Bitcoin ATMs worldwide, according to tallerembajador.com.mx, but analysts predict that Bitcoin ATMs will pass the 10,machine threshold most likely by the end of

Are customers interested in using Bitcoin ATMs?

In April, at the height of the coronavirus pandemic, tallerembajador.com.mx reported that some Bitcoin ATM operators saw an increase in transactions, even while the public was told to shelter-in-place. According to Forbes, Google saw a surge in Bitcoin-related searches giving speculation that ATM operators as well as the public were researching the use and viability of Bitcoin ATMs.

Do Bitcoin ATMs and cash ATMs work the same way?

Although Bitcoin ATMs are not the same as traditional ATMs, they work in a similar fashion. Bitcoin ATMs allow customers to use cash to buy Bitcoins, and many allow customers to sell Bitcoins, receive cash or insert cash and have it sent to someone's Bitcoin wallet.

What are the benefits of owning a Bitcoin ATM fleet?

"Bitcoin ATMs are a strategic complement to traditional ATMs because traditional ATMs are specialized cash dispensers and Bitcoin ATMs are specialized cash acceptors," said Andrew Barnard, CEO and founder of Bitstop, a Miami-based Bitcoin technology company that builds infrastructure and tools and supplies services to make bitcoin more easily accessible 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."

Do Bitcoin ATMs give operators a higher commission than regular ATMs?

Compared to a traditional ATM, the commission on Bitcoin ATMs is actually much higher. According to Forbes, the average industry fee ranges between 10 and 15% for operators, and the average volume per machine can be $12, or higher per machine. The average Bitcoin ATM may actually pay for itself in six to 14 months, depending on its location.

Can a traditional ATM be used and converted to a Bitcoin ATM?

Not exactly. To test the waters, traditional ATM operators may want to find a company that has Bitcoin debit card ATM software integration. According to an article in Coinsquare, there are companies that have developed software to retrofit ATMs, allowing them to sell cryptocurrencies via a customer's debit card without having to upgrade the machine's hardware. This doesn't change an ATM machine into a dedicated Bitcoin ATM, but it will help operators to determine if there is a desire for cryptocurrency in specific locations.

How does a revenue share partnership work with Bitcoin and why does it require 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 offer a revenue share program for traditional ATM operators, and although Barnard said that may be called a "partner program" or a "platform-as-a-service, it's essentially the same thing with varying levels of control."

An operator contributes their locations and merchant relationships and data from their traditional ATMs, and the Bitcoin ATM operator will install a Bitcoin ATM and pay the operator a monthly fee. Some of these programs may even require an ATM operator to buy the Bitcoin ATM, but they will not be allowed to operate it due 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."

What else should an operator consider before purchasing or integrating software for a Bitcoin ATM?

Choose a good legal partner and a crypto-friendly bank. There's a lot of regulatory compliance to keep track of which is why tallerembajador.com.mx suggests finding a legal partner that understands the jurisdiction where a Bitcoin ATM will be located and a bank that is comfortable handling cryptocurrency businesses.

As the country begins getting back to business after the coronavirus pandemic, take the time to research the opportunity that Bitcoin ATMs offer. The time may be right to take your business to the next level.

Pat Shea has been an editor and writer in mass market and trade publishing for more than 25 years. She has won press awards for her newspaper reporting and feature writing in corporate communication publications. She is now the editor of tallerembajador.com.mx and tallerembajador.com.mx