Convenience stores and gas stations thrive on foot traffic. They need a high volume of customers to maintain profits. But attracting new customers to brick-and-mortar retailers has proven to be challenging, especially in a pandemic environment. It’s a mature industry without too many transformative innovations.
Growing in popularity in 2021 — and anticipated to expand in the coming years — a new type of ATM machine offering cryptocurrencies can provide these stores with a new way to appeal to new buyers and drive traffic in-store. These machines function similarly to traditional ATM machines but, instead of dispensing cash, they enable customers to buy, sell and hold the most popular cryptocurrencies. And they represent an innovative way for retailers to attract customers and earn additional revenue streams.
A 2021 study from Allied Market Research points to massive cryptocurrency growth, with a compound annual growth rate of nearly 13% from 2021 to 2030, with the transaction segment seeing the fastest growth. Forward-thinking institutions like Selma, N.C.-based Sampson Bladen Oil Company are staying ahead of competitors by deploying cryptocurrency ATMs. The company owns various petroleum industry businesses, including convenience stores, gas stations, lubricant distribution and transportation, among others.
Manly Clark, a fourth-generation principal who manages many of the company’s partnerships and growth opportunities, launched crypto ATMs throughout Sampson Bladen’s portfolio of retailers to stay up to speed with the latest convenience store innovations. As his company launched into cryptocurrency ATMs, Clark and the team saw the need for cryptocurrency advocacy, training and close adherence to regulations and security protocols. At Bitcoin Depot, we’ve found this to be common among retailers who are new to the Bitcoin ATM space. Here are some best practices for retail operators that want to get the most out of crypto ATM installations.
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1. Be an advocate for new and innovative technology.
Bitcoin ATMs provide retailers with a new revenue stream and allow them to attract new customers. It’s important for retailers that offer these kiosks to understand the market and the technology, so that brands and individual employees can capably promote Bitcoin ATM usage to their customers. It also ensures a smooth first-time user experience to encourage repeat visits to the machines, and satisfied customers who are more willing to purchase gas or snacks from the establishment.
2. Leverage training sessions to optimize user experience.
Operators moving into cryptocurrency should conduct training sessions for management and line employees. This training can focus on how cryptocurrency works, the ease of buying and selling coins and how to operate the machines. They can learn about cryptocurrency wallets, which are digital stores for currencies like Bitcoin, Ethereum or Dogecoin. Customers can use a wallet from one of the many established providers or use an integrated wallet that’s offered by some Bitcoin ATM providers. Training sessions can outline how users can complete purchases in minutes by scanning their wallet QR code, selecting an amount and type of cryptocurrency and finishing the transaction. Users are then free to sell or accumulate their holdings as short or long-term investments.
3. Rely on experts to navigate the regulatory and security landscape.
Bitcoin ATMs require stores to add a new dedicated machine. There’s no process to retrofit traditional ATMs with cryptocurrency capabilities, so store operators need to find additional space. They also need to feel comfortable with the regulatory and security concerns that come with a new machine that offers digital currency.
Sampson Bladen and other operators rely on trusted Bitcoin ATM partners like Bitcoin Depot to manage state-by-state regulations that govern cryptocurrency transactions. These partners should have strong security practices, including encryption and other technologies that protect users’ personal data and keep cryptocurrency holdings safe from theft or loss. This emphasis on security gives retail stores an opportunity. They can produce print and online marketing content that both explains how to use Bitcoin ATMs while also providing reassurances about security and anti-fraud efforts. It’s another way to promote the machines to potential customers, developing transparent and trust-based relationships.
The Takeaway for Retailers
Data from a cryptocurrency ATM provider can help retailers pinpoint the best in-store locations for the crypto ATM machines and identify geographic areas that might be well suited to additional machine installations. Store owners and operators may discover consumers who visit specifically to conduct cryptocurrency transactions, and many become repeat customers who would not otherwise visit the store. As users become more comfortable conducting transactions using a Bitcoin ATM, the market will continue to grow, laying the groundwork for retailers to diversify their crypto offerings.
Brandon Mintz is the President, CEO and Founder of Bitcoin Depot, one of the world’s largest and fastest-growing cryptocurrency ATM companies. He is a passionate early adopter of cryptocurrency and advocate for simplifying financial access for everyone. When Bitcoin was still in its infancy, he founded ‘Cash To Crypto,’ one of the first professional OTC crypto trading companies in the world. Cash To Crypto allowed anyone in the U.S. to purchase cryptocurrency in minutes with no confusing instructions or excessive wait times. After seeing a need for crypto to have a physical presence, Mintz founded Bitcoin Depot. Today, Bitcoin Depot has thousands of ATMs across North America and enables users to buy dozens of cryptocurrencies instantly.
