Convenience store operators are always looking for ways to capitalize on new and emerging technology trends. Whether it’s frictionless checkout, order ahead, point-of-sale innovations or more, the industry has shown that it is willing to adapt to customers’ demands.
An often-overlooked piece of technology that retailers have started to implement is the crypto ATM, which is most commonly used with Bitcoin.
The global crypto ATM market size is expected to grow at a compound annual growth rate of 63.4% from 2024-2030, according to a recent report from Grand View Research. In 2023, the market size already sat at an estimated $182.1 million.
Much of this growth can be attributed to the rising demand for digital currencies, especially among those without traditional banking services or people who prefer cash transactions, the report noted. Therefore, individuals using crypto ATMs don’t need a traditional bank account to send money globally, and they are able to withdraw cash directly from digital assets.
Bitcoin ATMs, in particular, have started popping up more and more across the U.S., even in locations like airports, public places and, of course, convenience stores.
The main hurdle this technology faces is a lack of public understanding. However, for those that do understand or have a tentative grasp on the blockchain, transactions have proven to be seamless and effective in drawing customers and boosting in-store sales.
More than 66% of crypto ATMs are one-way ATMs, while demand for two-way ATMs is growing exponentially, according to Coin ATM Finder. Outside of the U.S. and Canada, Grand View Research reported, two-way Crypto ATMs are dominating the market.
The Plan in Action
Stinker Stores, which operates 105 locations throughout Idaho, Colorado and Wyoming, has embraced the technology successfully.
Stinker first introduced crypto ATMs in January 2023 through a partnership with Bitcoin Depot. As of today, the chain has 40 sites with the technology but is always looking to expand its network.
“We work closely with Bitcoin Depot to review performance on a quarterly basis to determine if we want to add additional units,” said Billy Colemire, Stinker Stores VP of marketing and brand. “In addition, we evaluate for the previously placed units to ensure it’s a truly mutually beneficial partnership.”
The response from customers has been positive — Colemire noted the ATMs have brought in a new segment of customers who regularly engage with crypto. However, it is all part of a larger plan to provide customers with what they demand and expect.
“We view having (Bitcoin ATMs) as a part of our strategy to meet our customers where they are, understanding that more and more of our loyal customers are likely to engage as this particular currency market evolves and becomes ubiquitous,” he said.
Stinker knows its customer base at each location and is discerning when deciding to implement the Bitcoin ATMs; the offering may be more effective at one site compared to another.
“We do not have a ‘one-size-fits-all’ approach when it comes to determining placement of (Bitcoin ATMs),” mentioned Colemire. “Rather, we work closely with our partners at Bitcoin Depot to analyze multiple data points to determine which sites show the most promise. It’s a bit of an art and a science, as placement within the store and having engaged and educated associates are also top of mind.”
Colemire went on to note that the ATMs have elevated the in-store experience for Stinker customers — the retailer can now provide a new form of financial convenience to a growing group of current and new customers.
Crypto’s Effectiveness
Introducing crypto ATMs has proven to be beneficial in improving foot traffic in public places like restaurants, bars and cafés, according to Grand View Research. It gives retailers the chance to offer a service to a new, tech-savvy demographic that was previously largely untapped.
Grand View Research predicts that retailers that implement the technology can see an enhanced guest experience and an increase in customer convenience and payment options.
Overall, the segment is expected to see immense growth, which benefits both the technology and retailers alike — the more consumers demand crypto ATMs, the more they are willing to make an extra stop to a location that offers it.
Manufacturers are also seeing a growing demand for hardware components, which leads to the assumption that the segment is poised for expansion.
Handling Potential Fraud
As with most emerging technologies and currencies, a topic that cannot be avoided is fraud. The risk of fraudulent activities is a “significant factor” when it comes to the success of the segment, according to Grand View Research.
To combat this, crypto ATM manufacturers have partnered with compliance-solution-offering companies, in addition to leveraging partnerships with software companies to increase accessibility.
At Stinker Stores, signage is displayed near the ATMs to warn customers of potential fraud, as well as digital messages and signage at various points during a transaction. External collaborations have also proven to be an excellent tool to combat fraud.
“I’d be remiss if I didn’t mention the amazing teams we have in these 40-plus stores,” said Colemire. “Their high caliber of customer service has added an additional level of defense and support when it comes to minimizing and eliminating any new forms of fraud.”
With the future of crypto ATMs trending upward, retailers should evaluate their operations to see if the technology would be beneficial in their stores.
