Why Info Touch Sees Benefits in 40-ATM Pilot with Cardtronics

The idea of merging financial-services kiosks with ATMs will be tested this spring when Info Touch Technologies Corp., operator of the TIO kiosk network, and ATM deployer Cardtronics Inc. begin driving some 40 machines specially fitted to dispense cash withdrawals and perform kiosk functions such as bill payments. The machines will be situated in retail outlets in the U.S., though specific locations haven't been determined yet, according to John Lewis, business-development executive for Burnaby, B.C.-based Info Touch. Houston-based Cardtronics, whose 26,000 ATMs make it the largest U.S. deployer, has installed machines in stores belonging to such chains as Duane Reade Inc. and ExxonMobil Corp. Info Touch has kiosks in outlets of six chains, including Speedway SuperAmerica LLC as well as ExxonMobil, and some stores belonging to cable and utility clients. Some 300 of its 700 machines are in Circle K Stores Inc. locations (including 25 more in El Paso, Texas, announced this week). Banks historically have shied away from dual-function ATM kiosks, fearing that customers wanting to withdraw from or deposit to accounts would grow frustrated while waiting for other people to complete bill payments or phone-card top-ups. While the Info Touch-Cardtronics machines, which are being manufactured by Tidel Technologies Inc., Carrollton, Texas, will help both companies establish whether a business case exists for such devices, they will also show whether customer frustration is a problem. “Definitely there's high sensitivity to that,” says Lewis. “That is something that will be monitored. There can't be any huge wait times.” At the same time, the companies serve two often separate demographic groups. Info Touch's kiosks are aimed largely at Hispanics, and draw mostly unbanked customers who do business in cash. The TIO network, indeed, ties into the back-end systems of its 10 utility, cable, and wireless clients, allowing the network to log real-time electronic updates when customers pay their bills at kiosks, which are fitted with bill acceptors. The immediate updates allow customers to make last-minute bill payments at presumably convenient store locations. By contrast, ATM users are generally accountholders at banks. But Lewis says the dual functionality could help Info Touch introduce its kiosks to users who might not have encountered them otherwise. “It takes us eight months to get 80% of what we expect to get out of each kiosk for each application because we have to do all this promotion,” he says. “[But] everyone understands ATMs. [They] pull traffic. Someone who's only using the ATM sees what else is here, and the awareness level goes up.” Info Touch's network, which generally offers cash-based bill payment, wireless top-up, and check-cashing, is processing $17 million in payments a month from 265,000 customers. Lewis estimates that traffic figure has doubled in the past year as the company has added agreements with service providers, including mobile-phone kingpin Cingular Wireless. The functions in the Cardtronics deployment will include payments for long-distance service as well as stored-value purchases and re-loading, in addition to bill payments and top-ups. Lewis says Info Touch has not yet worked out transaction projections. Generally, Info Touch charges kiosk users a fee?a flat charge for bill payments, a percentage-based levy on services such as long-distance?and then shares out portions to retailers and service providers. Lewis would not give details regarding the fee arrangement for the Cardtronics project. “We're pioneering a little bit here,” he says. “I wouldn't say we've gotten to a standard yet.”