6 Reasons To Host a Bitcoin ATM at Your Business
Hosting a Bitcoin ATM at your business can be a smart move to attract tech-savvy customers and generate additional revenue. Bitcoin ATMs are becoming increasingly popular as cryptocurrency adoption grows, offering users a convenient way to buy or sell Bitcoin.
By hosting one, you position your business as forward-thinking and innovative, appealing to a modern demographic. Additionally, Bitcoin ATMs typically come with revenue-sharing agreements, providing a steady stream of passive income for your business.
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What Are Bitcoin ATMs?
A bitcoin ATM (also known as a BTM) is a machine that dispenses bitcoin in return for cash. Some of these machines will also purchase bitcoin from you, dispensing cash in return. Because these machines are anonymous, the majority have strict transaction limits.
How Do Bitcoin ATMs Work?
Using a scanned QR code, bitcoins are dispensed directly to the consumer’s Bitcoin Wallet (more on that in a bit), or to a paper wallet printed directly by the machine. The ATM receives information about the current bitcoin exchange rate in real time via the internet, allowing it to alter the purchase price as needed. It also charges a service fee that is factored by the ATM and added to the price.
Some BTMs also purchase bitcoin and will dispense cash in return. However, this option is not as commonly found in BTMs. Most only allow for purchase of bitcoin.
Reasons to Host a Bitcoin ATM
Hosting a Bitcoin ATM at your business can be hugely beneficial for a number of reasons. Learn the main reasons local businesses are increasingly hosting bitcoin ATMs at their locations. Number 5 will shock you!
Set Your Business Apart From Competition
By hosting a Bitcoin ATM, you are offering something that your competitors are not. Simply put: this gives you an edge over the competition. Most people who are coming to your establishment and using the Bitcoin ATM are likely to return. If you’re the only business hosting a BTM in the area, you’re setting yourself even further ahead of not only your direct competition, but all businesses around you as well.
Drive More Traffic to Your Business
There’s no denying Bitcoin ATMs will drive more traffic and no business owner wants to miss an opportunity to bring more traffic to their business. Similar to if you had a regular bank ATM, people will see that you have one and choose to come in to use it. While Bitcoin may be increasing in popularity, those who would be using a Bitcoin ATM are still an entirely new demographic for your business.
Increase in Revenue
When your business hosts a Bitcoin ATM, more people will be coming into your business. Most people that come in will be drawn to shop around your business after they are done using the BTM. More traffic to your business coincides with increased revenue.
In addition, people who may not have visited your establishment if you did not have the BItcoin ATM would be coming. Therefore, Bitcoin ATMs increase customer base and sales. With Hermes Bitcoin ATMs, you earn a portion of revenue from each transaction or you can choose to be paid to host the ATM and earn a rental fee.
Keeping Up With The Times
Bitcoin and cryptocurrency in general is continuing to generate a substantial reputation. More and more people want to become a part of this aspect of the financial world. If your business decides to jump into the world of cryptocurrency sooner rather than later, it will continue to climb to the top along with Bitcoin, head first into the future. Hosting a Bitcoin ATM will show people that your business is staying with the times and embracing what is coming, which is the widespread use of cryptocurrency.
Marketing Opportunities
When you host a Bitcoin ATM, the ATM company will be advertising on their website that your business is a location for one their ATMs. Every Bitcoin ATM company has a section on their website where customers can search for the BTM that is located nearest them.
When someone searches for an ATM, they are directed right to your business. In addition, your business could be the first to pop up in a regular search on any search engine when a customer is looking for a Bitcoin ATM near them.
Since Bitcoin is continually increasing in popularity and making headlines nowadays, people are likely to have heard about it. But a lot of these people may not know what it really is or even bother to learn about it. If your business has a Bitcoin ATM, more people are likely to see it and be intrigued, resulting in educating themselves. This is not only a marketing opportunity for Bitcoin itself, but then those people are likely to come right back to your business’s BTM when they’re ready to buy.
The Use of Cash: More Options For You and Your Customers
If you host both a Bitcoin ATM and a bank ATM, you can use the cash that is deposited into the BTM to fill the bank ATM with it. Most transactions with a Bitcoin ATM involve customers depositing cash into it in order to buy Bitcoin, this results in an accumulation of cash. If you are able to take advantage of that cash, you can avoid handling fees from the bank ATM. Having a Bitcoin ATM on location also offers your customers more options other than just the bank ATM.
Getting Started as a Bitcoin ATM Host
Becoming a Bitcoin ATM host has a plethora of benefits and getting started is easier than you may think. Most BTM operators take care of most of the process for you, it’s only a matter of contacting them. You can send a message to Hermes Bitcoin to start the process.
All you need to do is offer some information such as your name and your business’s name, then prepare a small space within your business for the machine itself.
Knowledgebase
Frequently Asked Bitcoin ATM Questions
Here are the answers to some of the most frequently asked questions by our customers.
Is it worth having a Bitcoin ATM?
In terms of commission, Bitcoin ATMs are more profitable. Forbes reported that industry fees for operators are higher and the volume per machine can be significant compared to traditional ATMs (2). A Bitcoin ATM is worth having once you get it up and running.
How much do Bitcoin ATM owners make?
The amount that a Bitcoin ATM owner makes will vary, but one Bitcoin ATM company doubled its revenue in 2019 (3) so revenue can be expected to continuously grow as the market expands.
How much does it cost to open a Bitcoin ATM?
When hosting a Bitcoin ATM, the ATM company takes care of all the costs, so it costs virtually nothing for you, the business owner. All you need to offer is a certain amount of space and some power to run the machine.
How much does a Bitcoin ATM cost?
Bitcoin ATMs cost between $3000 and $14,500, depending on the model. Delivery and installation costs, taxes, and import duties are also included in initial cost for an ATM (4).
How much money can you take out of a Bitcoin ATM?
In accordance with the Financial Crimes Enforcement Network, Bitcoin ATM operators must uphold a limit for how much money can be taken out of the Bitcoin ATM. Hermes Bitcoin ATMs have a maximum withdrawal amount of $9,999 per day (5).
- Statista, Number of Bitcoin ATMs worldwide from March 2015 to February 2021 https://www.statista.com/statistics/343127/number-bitcoin-atms/
- Fintech News, How to Invest in Bitcoins ATMs https://www.fintechnews.org/how-to-invest-in-bitcoin-atms/
- Hank Tucker, Bitcoin ATM Provider Doubles Number Of Machines In 2-Month Span Using New Licensing Platformhttps://www.forbes.com/sites/hanktucker/2020/02/11/bitcoin-atm-provider-doubles-number-of-machines-in-2-month-span-using-new-licensing-platform/?sh=11616c6668d4
- JP Technology Group, How to Start an ATM Business Basic Information https://cdn.website-editor.net/92886b9bffda463a9c3aab5536f046ea/files/uploaded/Basic%2520Business%2520Start.pdf
- Hermes Bitcoin, Bitcoin ATM Limits Everything You Need To Know And More https://hermes.local/learn/atm-limits.
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