National Data Systems (NDS), a member of the Bytes Technology Group, has embarked on a campaign to implement ATMs in convenience stores such as BP Express Shops, Engen One Stops and Caltex Star stops, to name a few. The ATM machine, the NCR personaS70 Scalable Solution, a self-service ATM, is the same model that is being installed by most of the banks in South Africa, as well as internationally.
Retailers are offered a turnkey solution, from installation to ongoing cash management and also customised ATM screen displays to suit the individual store. The retailer has to do little other than to promote the ATM to their customers.
"The intent is that the ATMs are installed and run at no cost to the retailer. If, however, after an initial period of three months, the ATM is not generating sufficient transactions to be profitable, a rental will be charged, relative to the shortfall in targeted transactions. If the ATM dispenses over 4 100 withdrawals per month, NDS will pay the owner a commission for every transaction," says Kevin Choveaux, head of the ATM Annuities sales team at NDS.
It is expected that the ATM machines should pay for themselves through the transaction fees paid by the ATM users.
"Practical experience has shown that customers are more likely to frequent a convenience store that has an ATM installed. This seems to be for two reasons, firstly, the convenience of an ATM where they want to shop and secondly, the greater safety aspect compared to using an ATM on street," says Choveaux.
Global experience has shown that retailers who have installed ATMs have experienced increased customer volumes. As the ATM becomes recognised as a place to draw money, foot traffic into these stores is increased. Additional revenue streams are being created as existing consumers realise the value of this one-stop-shop convenience. Retailers have also found that they are attracting new customers because as they come in to draw money, many of them also purchase items from the shop.
Customers also find that an ATM that is positioned in a brightly lit and busy shop so much more convenient and more secure than in a dark, deserted alley where they feel vulnerable.
"Retailers that have already installed the NDS solution have reported boosted turnovers of between 10% and 30% per month," says Choveaux.
"They are experiencing reduced risk as they are now optionally able to cut down on trips to the bank and are able to safely re-circulate cash and reduce cash in tills. Shopowners are also reducing the risk of bad cheques by encouraging their customers to pay cash," says Choveaux.
As the largest supplier of ATMs in South Africa, NDS is able to provide the shop owner with full services in order to manage the ATM. Some of these services include the shop fitting of a cubicle to facilitate the back loading of the ATM in secrecy and installation of the ATM and communication line. Cash required for the ATM is also supplied, unless the owner wishes to load his own money or alternatively the regular replenishment of cash by a cash-in-transit company can be arranged. NDS also provides full maintenance of the ATM and continual monitoring of the ATM via its Knowledge Centre.
NDS also provides a single point of contact for any problems the owner may have, replaces all ATM consumables, pays for the cost of the communication calls and line rentals, and provides the signage inside and outside the store to advertise the presence of an ATM.
The ATM solution includes software developed internationally by NCR and adapted by NDS to local requirements. All NDS ATMs are monitored and managed remotely and retailers` investment protection is assured, with hardware, software and services modules all being upgradeable to meet future demands.
A dedicated NDS Annuity sales team has been appointed to address the new ATM annuity market space. The new project is managed by George Isaacson and Kevin Choveaux, and consists of five dedicated sales personnel, based in Gauteng, the Western Cape and KwaZulu-Natal.
"The installation of an ATM in a retail environment is definitely one of the most exciting developments in the retail world," says Choveaux.
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A member of the JSE-listed Fintech group of companies, NDS is the leading supplier of ATMs in South Africa. The organisation supplies and supports almost 80% of ATMs used in Southern Africa. Their machines are manufactured by NCR, the international market leader in the ATM industry. NCR has more than 36% of the market and is ranked #1 of the installed base. For the 14th consecutive year NCR has the largest ship-share of all ATM manufacturers.
NCR personaS70 Scalable Solution
A self service ATM, the NCR personaS70 Scalable Solution has a compact "footprint" to take up minimum space, and rear-loading access to ensure security. The ATMs are rear-loading and enclosed in a built-in cubicle, so shoppers cannot observe the routine of the canisters being changed, ensuring that the ATM is far less vulnerable than a front-loading model where everything is in full view and easy access. The rugged and robust quality of the machines has been proven in the harsh SA. Keyboards are steel, with flush surfaces unlike raised, less robust keys - these are highly resistant to rough usage and vandalism. The cabinet is hardened bakelite while the safe is industrial standard and the screen armour-plated glass.
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