Investing in ATMs has become an increasingly popular alternative investment in recent years. By placing a cash-dispensing machine in high-traffic areas, investors can earn money from transaction fees charged to consumers. However, like any investment, putting money into ATMs also carries risks. This article will analyze the potential returns and risks of investing in ATMs with Fidelity.
High potential returns from atm transaction fees
The main way investors earn returns from ATMs is through the transaction fees charged to consumers. Each cash withdrawal incurs a surcharge fee, usually $2-5 per transaction. In prime locations like malls, convenience stores, and other retail outlets, a single ATM can process over 300+ transactions per month. At $3 per transaction for example, an investor could receive over $900 per month in surcharge fees alone. This steady stream of cash flow has made ATMs an appealing hands-off investment for those seeking alternatives to stocks and bonds.
Benefits of Fidelity assistance with atm management
Managing an ATM investment on your own can be complicated and time-consuming. Working with a financial services provider like Fidelity allows investors to outsource the responsibilities of owning and operating ATM machines. Fidelity assists with tasks like identifying high-traffic ATM locations, installation, loading cash, maintenance, compliance adherence, security measures etc. They simplify ownership so investors can passively earn transaction fees with minimal effort. Their expertise helps maximize your ATM’s profitability.
Downside risks to weigh before investing in atms
While ATMs can generate impressive cash flows, keep in mind they come with a unique set of risks. Investing through Fidelity can minimize risks around security, cash flow, fraud and compliance, but factors like new regulations, technology shifts to cashless payments, and economic downturns can dampen profits. Weigh the initial $10,000+ investment against your risk tolerance. Talk to a Fidelity investment professional to determine if adding ATMs to your portfolio aligns with your financial goals.
In summary, investing in ATMs with Fidelity allows hands-off investors to tap into a steady stream of cash flows from surcharge transaction fees, with assistance managing many ownership responsibilities. However weigh risks around regulations, fraud, cashless payments against the high capital costs before investing.