top of page

Future Proof Your Portfolio by Selling Merchant Services

August 22, 2022

President & CEO

(800) 742-1852 O │ (443) 561-9846 M

young man selling in store, paying with credit card, store owner

Cash remains an important payment method. The 2022 Diary of Consumer Payment Choice reported an increase in cash payments since the 2020 study. A new TikTok challenge is encouraging Generation Z to rely on cash for bills, budgeting, emergencies and more. But, despite young Americans’ continued preference for cash and ATMs, transaction volumes at US ATMs continue to decline.

paying with credit card, couple paying with credit card, using credit card, pos

Why are Volumes and Revenues Declining?

Many so-called experts are happy to wax poetic about the death of cash and the coming end of the ATM. But the truth is much simpler. ATM use wains as a consumer ages. Older consumers in general are more likely to develop financial habits and general behaviors that make them less reliant on using an ATM – especially at a convenience store, bar, night club or other retailer.

Studies show the biggest users of ATMs are consumers 18 to 34. These individuals average close to six visits to the ATM per month. While this information bodes well for the continued use of ATMs into the future, it also sheds considerable light on the transaction decline dilemma. Because the youngest Millennials are 27.

That’s right, the largest generation in recorded history with over 72 million members, is gradually aging out of the ATM use demographic. And Generation Z’s members are largely underage, with the youngest members currently preparing to enter first grade. But even as Gen Z’s older contingent ages into ATM use, with nearly 10 million fewer members the group is hardly likely to fill in the revenue gaps left behind by Millennials.

What can Selling Merchant Services do?

One of the best ways to combat the inevitable decline in ATM revenues is to expand your portfolio to include forms of retail payment beyond cash. Selling merchant services allows your business to continue providing much-needed ATM and cash services for future generations while also following the growing revenue opportunities as Millennials leverage credit, debit and point-of-sale cash back options to meet their evolving preferences.

In addition to following the trends in the general population, merchant services also:

· Creates closer ties with current and future merchant partners

· Provides smaller IADs with service packages make their offerings more attractive

· Builds out an additional revenue stream that offsets ATM transaction volumes

Why the Right Partner Matters?

Today’s technologies are giving retailers more options to create payment environments that best fit the needs of their business and customers. Fortunately, that same technology is what is making it possible for ATM deployers to expand into merchant services.

To compete, deployers must be careful to work with the right processing and service partners, to offer the types of merchant services that are most appealing. Services like cash discounting, low processing rates and real-time reporting are just a few of the options many retailers want.

To learn more about the benefits of selling Merchant Services don’t miss our session on this topic during the 2022 National ATM Council Conference & Expo Sept. 13-14, at the Seminole Hard Rock Hotel and Casino in Hollywood, Florida.


Yonas Marcos CEO Star Financial

About Yonas Marcos— Yonas Marcos is the President & CEO of Star Financial Services. Born and raised in Addis Abeba, Ethiopia, Yonas came to the U.S. for his college education and graduated from Towson University. In 2007 he founded Star and has grown it into a nationwide financial payment services provider that offers electronic and mobile payments, ATM equipment and processing, ATM branding, ATM outsourcing for financial institutions and mobile event payments. Connect with Yonas via email or on LinkedIn.


Featured Posts
Recent Posts
Search By Tags
Follow Us
  • Facebook Basic Square
  • Instagram Social Icon
  • Twitter Basic Square
  • YouTube Social  Icon
bottom of page