According to National Cash, over 10 billion transactions occur yearly at ATMs in the United States. This number alone tells you that an ATM business has immense potential.
If you dream of owning a business that can make you money while you sleep then it has to be an ATM business. It is a simple yet powerful and proven way to generate passive income.
Start an ATM machine business if you are looking for a side hustle in 2025 that can work as a passive income stream with minimal ongoing effort.
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What Is an ATM Business?
An ATM business involves owning and operating automated teller machines, where the users will be able to take out cash instantly in exchange for a small fee. This fee will be your main source of income. With each transaction at your ATM, you’ll be able to earn a small portion of the fee.
As an owner, you will be responsible for keeping the machine stocked with cash. When someone withdraws cash, their banks will quickly reimburse the money into your account.
Everyone benefits from the ATM business. As an owner, you’ll earn passive income in the form of a transaction fee. The business hosting the ATM is likely to get some sales from the customers withdrawing the cash. Lastly, the customer will gain convenient access to withdraw the cash immediately.
There are several other ways to make passive income. In this article, you will find 14 evergreen ways to make passive income.
How to Start an ATM Business
If you are thinking of starting an ATM business, there is no better time than to start right now. Starting an ATM machine business is extremely easy but to make it successful, you will need to have a plan. Here is a step-by-step guide that you can follow to start an ATM business.
1. Choose a Location
For your location, you should look for areas that have a high volume of people visiting these places daily such as gas stations, convenience stores, etc. All these locations have limited access to banks and are great for starting an ATM business.
To see if an ATM machine will be used in an area, you can study the demographics of that area and see how often people use cash to make purchases. Observe cash counters of different businesses to see how people are paying.
2. Register The ATM business
Check with the local and federal regulations that govern ATM operations to register your business.
You may also need atm business licenses or permits depending on your region. You should ensure your business complies with anti-money laundering (AML) laws. Choose a name and decide if you want to start a sole proprietorship, LLC, or a corporation.
3. Get an ATM
You can buy a new or a used machine. Just ensure the machine has modern features such as touchscreen interfaces, cardless withdrawals, or receipt printing options.
After this, you can reach out to businesses to host the machine. Some businesses will charge a hosting fee for your ATM while others may demand a percentage of your transaction fee. You can negotiate what works best for you.
How to Finance an ATM Business
Before you finance an ATM business, you will need to assess the startup costs. This will give you a clear idea about how to finance an ATM business.
Overview of Startup Costs
To start a business, you will need to buy an ATM. An ATM will cost anywhere between $1000 to $10,000 per unit. You will also need to set aside some maintenance and repair costs. This can range anywhere between $50 to $150 per month.
Once you start the business, you will need enough money to stock the ATM. The average ATM holds $1,000 to $5,000 but this will depend on your location and the usage.
Then you will also need a stable internet connection. This can add another hundred dollars to your startup costs.
There are several financing options available to start an ATM cash machine business. Following are some of the financing options that you can choose from:
1. Self-Funding
You can use your savings to finance your business. This is the best option. There is no need to pay loans or share your profits with anyone. You will have complete control over your business. The only downside is that it requires a significant investment so if you plan to expand your business, you’ll have to take a loan or arrange the money through other means.
2. Small Business Loans
Many banks and small business unions offer loans to small businesses. This will allow you to expand your business quickly and invest in multiple ATMs. The only downside is that you will have to make loan repayments and interest payments every month. You will also need to have a good credit score and a detailed business plan.
3. Lease or Rent ATMs
You can lease or rent ATMs. You can get access to the latest equipment and often maintenance is included in leasing agreements. The only downside is that leasing costs can add up over time which can reduce your overall profitability.
4. Partner with Investors
You can look for investors who are ready to invest in your business in exchange for a share of profits or some equity in the business. This way you’ll have access to funds without taking any debt but on the other side it can limit your control over the business.
Problems Faced While Running an ATM Business
One of the biggest hurdles when starting an ATM business is the competition in prime locations. Many businesses will prefer to use established operators. To overcome this challenge, you will have to start with underserved areas or negotiate attractive terms with the location owners.
Another major issue is facing technical issues and downtime. This can severely impact your business and reputation. You can overcome this challenge by getting regular maintenance for your machines. Partner with a reliable service provider.
Another risk is that the cash can be stolen. You can avoid this by investing in secure machines, installing surveillance systems, and choosing well-lit, high-traffic locations to avoid theft.
Benefits of Starting an ATM Machine Business
There are several benefits of starting an ATM business and some of them are as follows:
Higher-Profit Margins:
According to Bankrate, ATM fees have gone up significantly, averaging $4.73 per transaction. This explains the high profit margins. Even if you can get a few transactions daily, even a single machine can yield great returns. This is a great source of passive income.
Low Time Commitment:
Once you have set up a business. It requires minimal management. You just need to replenish the cash quickly and need regular maintenance.
Frequently Asked Questions
Are there any ongoing fees or maintenance costs?
Yes, the costs include replenishing the cash, a stable internet connection, and occasional maintenance. All of this can range from $50 to $150 per month per machine.
How much does it cost to start an ATM business?
To start up an ATM business, you’ll need anywhere between $1,000 to $10,000. This cost included the machine, installation, and initial cash reserves.
How long does it take to break even?
You will most likely reach breakeven within 6-12 months, depending on location and transaction volume.
How profitable is the ATM business?
The ATM business can be highly profitable. The earnings come from transaction fees. As an ATM owner, you can easily earn between $1,000 to $3,000 per machine monthly, depending on location and usage.
How to start an ATM business?
To start an ATM business, you need to research profitable locations, purchase or lease ATMs, register your business, and set up agreements with location owners for the placement of the machine. Then, you can maintain your machines and monitor performance.
What kind of business is an ATM business?
An ATM business falls under the category of automated financial services. This business involves owning, operating, and managing ATMs to earn revenue from transaction fees.
How do you get an ATM business license?
To get an ATM business license, you’ll need to check local and state regulations. You’ll need to register your business, acquire an operating license, and comply with financial industry regulations, including anti-money laundering (AML) laws.
Conclusion
An ATM business is a great way to earn passive income. It requires low maintenance and has the potential for higher profit margins. This is great for entrepreneurs who are looking to diversify their income streams.
Once your ATM business is set up, it can quickly turn into a profitable venture. With time, as you continue to gain experience, you will be able to scale and grow. Just start small if it is your first time and with time invest more into your business.