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Are ATMs the next source of gift cards?

February 28, 2013

A new study suggests that ATMs could be the next frontier for the custom gift card market.

A new study suggests that ATMs could be the next frontier for the custom gift card market. The research, commissioned by Better ATM Services, will be released soon, but in the meantime, the company’s CEO, Todd Nuttall, spoke to PYMNTS.com about the findings so far.

According to Nuttall, the study found that while people cannot currently purchase products like personalized gift cards at ATMs, 70 percent of people use both cash and prepaid media.

“As you look around the world, prepaid of all types are growing and ATMs are well-established with over a couple of million in the world, and they’re known as the best self-service devices on the planet,” Nuttall told PYMNTS. “By bringing the two services together, we offer a wealth of opportunity to both the prepaid world and the ATM world.”

Better ATM Services used the study to gauge interest in custom gift card-enabled ATMs, and the desire seems to be strong in Nuttall’s assessment.

Better ATM Services has launched a gift card initiative in the past. In a 2012 deal with several Arizona credit unions, the company, along with Visa, added the option to buy prepaid purchase technology to some of the banks’ machines. The cards were available in $25 denominations, and required no activation fees.

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