Why consumers go out of their way to use in-store ATMs

A recent intercept survey by the public opinion company Creative Consumer Research asked 395 retail customers in Houston, Illinois, Georgia and New Jersey about their use of ATMs in US retail stores. The objective was to ascertain the impact of in-store ATMs on consumer traffic and purchase behaviors. All respondents were surveyed on store premises at locations where ATMs were available when the store was open.

70% visit to use the ATM

Across the four markets, a whopping 70% of respondents said they visited the store primarily to use the ATM. (This was a significant increase over the results of a similar ATM intercept study in 2015, in which 53% of ATM users said they visited the store primarily to use the ATM.) Of those who said they visited primarily to shop at the store, more than half said they had used the ATM in the store.

52% use the store ATM at least once a week, withdrawing an average of $270

More than half of respondents (52%) said they use the in-store ATM once a week or more. 40% said they use ATMs in general at least once a week.

33% of ATM users made a purchase, nearly half using money they got from the ATM

An average of 33% of ATM users made a purchase while in the store. About 52% of these paid for their purchases with cash they had just withdrawn from the in-store ATM.

59% cited convenience as their reason for choosing this ATM, 53% said surcharge-free

Most respondents said they came to the in-store ATM because it was convenient; a combined total of 53% said they chose it because they weren't charged a fee for using it (40% who said because it was a surcharge-free network ATM plus 13% who said it was a surcharge-free bank ATM). Houston was the only market where more people said "free" was their reason rather than "convenience".

Important factors cited for deciding to use an ATM

The survey company then asked more questions about the attributes respondents valued most in an ATM. The results of this line of questioning were:

65% Free to use

62% Secure, safe to use

27% Convenient location of store

9% Easy to find in the store

11% ATM owned by my bank/has my bank's brand

27% Reliable

Features respondents said they would be likely to use if added to the ATM‍

An average of 57% said they would be likely to make deposits at the in-store ATM if that feature were available. 32% said they would pay bills at the ATM if they could and 37% said they would use the ATM to get a cash advance if they could.

54% said they would shop at the store less often if the ATM was removed

More than half of respondents said they would shop at the store less often if the ATM was removed. 42% said such a change would not affect their frequency of shopping there.

Demographics of survey respondents

The survey's 395 respondents were:

Gender: 53% female, 46% male‍

Age: 34% 21-30, 31% 31-40, 19% 41-50, 7% 51-60, 5% > 60, 3% < 20‍

Married: 75% yes, 22% no‍

Kids at home: 43% yes, 55% no‍

Employed: 73% full time, 12% part time, 5% retired, 2% student

Implications of the study for customers, financial institutions and retailers

Customers of US banks and credit unions clearly appreciate and seek out in-store ATMs for the benefits they offer: convenience, extended hours and, courtesy of their financial institutions, surcharge-free transactions. The report shows they return to their store regularly to use them.

This increasing customer adoption of in-store ATMs demonstrates that they are a highly effective vehicle for financial institutions in shifting transactions to the self-service channel. By offering their customers the self-service customer experiences they value through in-store ATMs, US banks and credit unions are accelerating the shift to self-service, reducing their per-transaction costs and freeing up their personnel for business activities that require a human touch.

In-store ATMs also benefit retailers, increasing store traffic and sales by bringing new customers into their stores and adding additional reasons for their regular customers to increase their store visits.

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