No one uses cash…why are convenience stores adding more ATMs?

Mr. A (32), an office worker, usually withdraws money from convenience store ATMs when he packs his wallet. Despite the perception of high fees, he often has to travel a long way to get to the bank branch where he has a debit card account. “I’m willing to pay the (ATM) fee to use a convenient nearby convenience store,” he said.

Mr. B (30), an office worker, finds the nearest ATM to withdraw money, whether it is a bank or a convenience store. He uses a debit card from an online bank. “I don’t mind using ATMs at convenience stores because I don’t have to pay fees at all ATMs,” he said.

While the transition to a “cashless society” is accelerating, the number of financial automation devices, such as ATMs in convenience stores, continues to grow, according to the survey. While the overall demand for cash is declining, the role of convenience stores as an alternative to the rapidly closing bank branches is gaining traction.

7-Eleven, 1000 new ATMs in 2 years…GS25, more than 12,000 in operation

Cash transportation officials work to release Lunar New Year funds to be supplied to commercial banks at the headquarters of the Bank of Korea in Gangnam, Gangnam-gu, Seoul, on Jan. 16, a week before the Lunar New Year holiday. Bills such as 50,000 won and 10,000 won notes, which are bundled in batches of 1,000, are transported to each area in plastic bags.(Photo is not directly related to the content of the article)…[Photojournalism Foundation]

According to the industry on the 9th, the number of CDs (cash machines) and ATMs (automated teller machines) installed in the stores of 7-Eleven, CU-GS25 (in alphabetical order), and three convenience stores has been increasing recently.

7-Eleven currently operates 8900 CD-ATMs. This is an increase of nearly 1,000 ATMs (13%) in just over two years from 7800 in 2021. The number of CD-ATMs used over the past year has also increased by 15% compared to 2021.

CU now has CD-ATMs in about 9,100 stores. The number of CD-ATMs is growing at an average of 100 per year, up from 8,900 in 2021.

GS25 currently operates more than 12,000 CD-ATMs in stores nationwide. GS25 first exceeded 10,000 CD-ATMs in 2018 and has continued to increase the number of machines. Its annual transaction volume is KRW 11 trillion. It has partnered with 11 major banks and securities companies to waive fees.

Bank branches are disappearing at a rate of one every three days메이저사이트… ATM users are buying at convenience stores and making sales.

ATMs of commercial banks installed in downtown Seoul [Yonhap].

Convenience stores continue to install more and more CD-ATMs, largely due to customer demand.

While the number of people using cash has decreased significantly due to the widespread use of debit and credit cards and simple payments, the demand for alternative services has increased as banks have been cutting back on their branches.

According to the quarterly reports of the four major banks, KB, Shinhan, Hana, and Woori, the number of branches totaled 2,865 at the end of the first quarter of this year. This is a decrease of 35 (1.2%) from the same point last year (2,900). That’s a loss of one branch every three days. According to the Korea Bankers Association, there were 25,060 automated devices installed at the five major commercial banks – KB, Shinhan, Hana, Woori, and NH – at the end of last year. This is a decrease of 1,501 (5.7%) from a year ago, and ATMs in particular decreased by 7.5% over the same period.

Against this backdrop, the convenience store industry is taking the opposite strategy of increasing the number of CD-ATMs to broaden the potential customer base. “We are installing ATMs in neighboring stores due to the impact of bank consolidation,” said a representative from a convenience store company.

Access to CD-ATMs in particular can lead to a direct revenue boost for convenience stores. According to GS25, about half of all CD-ATM users tend to purchase products at convenience stores immediately after withdrawing cash.

From card issuance to video consultation… Local convenience stores are transforming into bank stores

CU Bisanzai, CU’s second financial convenience store [Photo courtesy of CU].

The convenience store industry is moving beyond CD-ATMs and expanding its presence as an alternative financial platform to the disappearing bank branches.

Last year, 7-Eleven partnered with DGB Daegu Bank to open a financial specialty store, Daegu Naidang Station, in Dalseo-gu, Daegu, while CU opened its second financial specialty convenience store, Bisanzai, in Anyang-si, Gyeonggi-do, last year, following its first, Machun Park, in Songpa-gu, Seoul, in 2021. GS25 opened its first financial innovation store, Gohan Ju-gong, in Jeongseon-gun, Gangwon-do in 2021, and has now expanded to its third store.

Convenience stores specializing in finance can issue deposit and withdrawal passbooks, debit cards, happy pay, and card-type OTPs through CD-ATMs as well as kiosks. In addition, they also provide services such as processing various tax returns, registering palm vein information, and video consultation.

“Increasing the number of CD-ATMs is aimed at increasing sales and expanding customer convenience,” said an industry insider. “Convenience stores can serve as offline bases for various fields that are disappearing, increasing the influence of convenience store brands and industries. Through active collaboration with other industries, it is possible to secure new growth engines such as differentiated services and product launches.”

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