ATM managed services, also known as ATM-as-a-service, are a professional and complete suite of services offered to banks, and financial institutions, and other businesses deploying ATM machines. It deals with a variety of services such as liquidity management, monitoring, and remote monitoring, and others. Furthermore, ATM management services enable banks, financial firms, and other organisations to maximise operational efficiency, increase performance and profitability, concentrate on more profitable duties, and boost customer level of satisfaction of ATM services in the industry.
It is the method of organizing your company's infrastructure. This includes anything from maintenance to support with application and service development. It also entails maintaining your present infrastructure, such as mainframes, computers, and networks.
Covid-19 Impact & Market Status
The COVID-19 epidemic has had an influence on the banking business, but it has also contributed to advancements in the ATM business. Due to the current pandemic, some ATM makers are providing cardless cash withdrawals since there is an upsurge in customer demand for contactless payments. The ATM service management sector has been badly hit as a result of the COVID-19 outbreak. The ATM replenishment & money management services market has been particularly impacted, as it includes replenishing ATM machines and interacting directly with consumers. Furthermore, ATM services are concerned about the issue since their personnel have encountered several challenges from external settings across nations. Companies functioning in the market, on the other hand, are taking many efforts to ensure thorough sanitization and safety for their employees, particularly the payment processing team.
Technological Advancement to propel the market growth
Increased technical advancements are creating economic prospects for banks and other institutions to build up ATM services strategic plan in order to increase corporate revenues. Furthermore, with the integration of technologies like artificial intelligence, IoT, blockchains and others, ATM managed services will be able to implement tight security and eventually meet the market expectations of ATM machine users. As a result, significant technical advancements are projected to create profitable prospects for ATM service providers in the next years.
Increased usage of banking cards will contribute to the market growth
Debit card usage has increased dramatically as a result of numerous governments' financial inclusion programmes throughout the world, and it is expected to rise further in the future years. For example, in 2020, a poll found that roughly 64 percent of customers picked debit cards as their most often used card, with a 53 percent increase from the previous year. As a result of the rising use of debit cards, customers have come to anticipate immediate and efficient banking service for cash withdrawal and other similar services. As a result, banks, financial firms, and other commercial organisations have reinvested in ATM managed services in terms of improving market user experience.
Asia Pacific to be the leader in the ATM managed services market
Asia Pacific led the worldwide ATM managed services market, followed by North America and others. During the projection period, China's utilisation of ATM managed services is predicted to rise. This is due to the rising use of ATM machines in the country. Another key factor propelling the growth of the ATM managed services market is the banking and financial sector's fast use of technology. Many organizations collaborate with payment solutions to provide improved services to their customers. Customers, for example, may use the WeChat app to transfer money from ATMs. In China, several prominent banks, including Holdings plc., and others support WeChat services.
North America is predicted to gain the most throughout the projection period. As per the research, North America would dominate the worldwide ATM managed service market over the forecast period. This is due to a massive infrastructure of ATMs in the United States and Canada.
The ATM managed services market is expected to be of worth USD 10.7 billion at a CAGR of 6.4% during 2022-2029.
ATM managed service providers provide professional ATM services to financial institutions and manage them. Its services include ATM network management, and currency management, and others. Furthermore, by taking on the responsibility of ATM machines, these controlled service companies assist banks, financial firms, and other corporate entities in improving user experience, maximising operational efficiency and profitability, focusing on productive work, and others. Furthermore, ATM service providers give numerous elements for service selection, such as outsourcing the complete ownership, administration, and operation of ATM programmes, or selecting certain services.
Banks, financial firms, and many others are incorporating digitalisation technology to increase revenues, provide convenience and efficiency services, and cut operational costs for ATM machines that they have placed. As with the acceptance and integration of digitally enhanced advanced technology such as self-service software, IoT, and some others, easy access to a variety of complex services such as money transfer among transactions, and others is provided. Furthermore, the increase in debit cardholders is a driving force in the ATM managed services industry, as customers anticipate rapid and advanced ATM services for cash withdrawal and other similar services.
However, with the rise of new technology such as AI, NFC, blockchain, and others, the use of physical ATM machines has shifted to online transactions. As a result, the ATM managed services market's growth is constrained. Furthermore, the absence of security requirements at ATM machines as a result of criminals developing new scams including card reader skimming and hidden cams is impeding the growth of this industry. Expanding ATM services in the Asia-Pacific region, on the other hand, are likely to give profitable potential in the industry.
As customer expectations for advanced ATM services rise in the area as a result of greater mergers and acquisitions, especially in banking industry, in these undeveloped markets. As a result, ATM managed service providers are projected to benefit from attractive chances to grow their operations and enhance their entire position in the future years.
The ATM restocking and currency administration sector led the ATM managed services business till now and is expected to continue to do so during the forecast period. The demand for these activities by financial firms is mostly for the installed ATM machines and is likely to increase in the future years. Furthermore, the advancement of modern ATM monitoring technologies, real-time cash status tracking, and immediate access to traceability for currency management are among some of the reasons contributing to the growth of the market during the projection period.
Due to an increase in debit card usage and demand for enhanced ATM services, the worldwide ATM managed services market is likely to rise significantly during the forecast period. Debit card adoption has skyrocketed due to an increase in many government initiatives aimed at increasing financial inclusion internationally. Furthermore, as the use of debit cards grows, people are increasingly expecting more advanced and quick ATM services. The increased use of debit cards is attributed to improved card security and discounts on ATM transactions.
The amount of debit card holders and contactless payments expanded dramatically as a result of such programmes. Banks are using new security mechanisms to verify if the actual card being used by the customer is genuine or counterfeit. For example, the Reserve Bank of India ordered in January that banks convert their outdated cards to EMV devices. EMV chip cards have features such as improved authentication, which helps to prevent unauthorised and fraudulent transactions. People are choosing ATM cards because of these advantages, which supports the expansion of the ATM managed services industry. The quantity of debit transactions is rising as a result of all of these measures, and financial firms are working on improving the existing ATM managed services in order to deliver good services to clients.
The key market players in the ATM managed services market include Hitachi Payment Services Private Limited, Financial Software & Systems Private Limited, AGS Transact Technologies Limited, Electronic Payment and Services Pvt. Ltd., NCR Corporation, etc.
ATM Managed Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 10.7 billion.|
|Growth Rate||CAGR of 6.4% during 2021-2028|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and South Africa|
|Key Players Profiled||Hitachi Payment Services Private Limited, Financial Software & Systems Private Limited, AGS Transact Technologies Limited, Electronic Payment and Services Pvt. Ltd., NCR Corporation & among others.|
Key Segments of the ATM Managed Services Market
Type Overview, 2022-2029 (USD Billion)
- Cash Dispenser
- Smart ATM
Application Overview, 2022-2029 (USD Billion)
- ATM Service
Regional Overview, 2022-2029 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa