How to Start an ATM Business

how to start an atm business

Despite the widespread use of digital banking in different forms, ATMs continue to play an important role in how people access their money. Starting an ATM business can be a good way of generating revenue, you need to play your cards right. Fortunately, following a few simple measures can ensure that you stay on top of the game over the long term.

Conduct Market Research

Carry out market research to understand the demand for ATMs in the area you select. You also need to identify potential competitors and analyze their strengths and weaknesses. This enables you to replicate their best practices and build on their shortcomings.

Create a Business Plan

Develop a comprehensive business plan that outlines your business strategy, target market, financial projections, and marketing plan. It should also contain key information about your company, its competition, and its management team.

Prepare for Operations

You need to prepare for operations before you start an ATM business. The process requires you to:

  • Select a business name that’s simple and easy to recall.
  • Choose from legal structures like sole proprietorship, partnership, Limited Liability Company (LLC), C Corp, and S Corp.
  • Seek funding, if required.
  • Apply for an Employer Identification Number (EIN) with the Internal Revenue Service (IRS).
  • Open a bank account in the name of your new ATM business.
  • Find a suitable location and consider high-traffic areas such as shopping malls, convenience stores, gas stations, and airports.

Obtain Necessary Licenses and Permits

Before starting an ATM business, you need to get the required licenses and permits. These tend to vary based on the state in which you reside. You might also need additional permits depending on various aspects. For example, if you want to set up an ATM at a location that will also sell alcohol, you will need a Class C liquor license. If you’re unsure about the permits and licenses you need, you can always turn to your ATM placement company for guidance.

The location you select needs to comply with local zoning requirements. For example, installing ATMs on public sidewalks in New York City is illegal and can result in their owners receiving encroachment notices.

Get the Equipment You Need

Take your business needs into account before you invest in an ATM. Freestanding machines are typically more affordable than through-the-wall (TTW) machines. You have the option of buying new or used ATMs, and you may choose to go the leasing way. You will also need to invest in a computer, software, internet connectivity, and security equipment.

Don’t Forget Processing and Management

Once you install your ATM, you need to think about processing and management. This requires partnering with a company that specializes in online terminal monitoring, provides real-time support, loads your ATM with cash, and carries out need-based repairs.


Now that you know how to start an ATM business, make sure you create a good business plan and focus on implementing it in the right manner. Remember that it’s important for you to partner with a reliable ATM provider because this plays a key role in the success of your venture.

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