It looks like bitcoin ATMs are becoming far more popular. Companies like Coinsource, which provides bitcoin ATMs to regions throughout the U.S., claims it earned more than $50 million in 2019, more than double what it garnered during the previous year, and things are only looking up.
Coinsource Is Giving the Crypto ATM Arena the Boost It Needs
One of the reasons Coinsource is experiencing such growth is likely due to its latest tactic of going to standard fiat ATM providers and helping them to switch over to crypto-based machines. CEO Sheffield Clark says that he and his team have spent solid periods of time discussing the properties and benefits of crypto machines with traditional ATM providers and have had much success in getting them to “see the light” and offer more digital currency machines.
Once this occurs, they’re seemingly entitled to profit from their efforts. In an interview, he states:
We felt like instead of continuing to roll out hardware at the pace we had been, we thought why not go to the traditional ATM operator that has a great business but wants to diversify their traditional ATM portfolios? They can see how profitable it can be and then begin to take services back over time.
The bitcoin ATM arena has been hit with a rather negative reputation over the years. Some have gone so far as to accuse the industry of promoting money laundering in that several bitcoin ATM companies do not enforce know your customer (KYC) tactics in exchange for high fees – sometimes in excess of 20 percent or more.
As a result, these machines can be used by anyone to wipe their money clean – and quickly.
Coinsource, however, has stated that it’s working very hard to rid the industry of this reputation. It currently employs a compliance team consisting of attorneys and even former government agents to ensure all customers who use the machine do so appropriately.
The company has also issued a compliance licensure agreement to its affiliates, which Sheffield says is how it’s been making most of its money these days.
Jessica Jay – the vice president of operations for National Cash Systems – says Coinsource has been quite helpful in getting its regulatory tactics up to speed. As the latest traditional ATM company that’s now offering bitcoin-based machines with help from Coinsource, she explains:
It would be impossible for us to do this ourselves. It would take years and millions of dollars, so they’ve done the backend, hard, expensive work for us.
Still More Convenient?
Clark is also very confident that despite the high fees crypto ATMs will charge, they are still more convenient when compared with digital currency trading platforms and exchanges. He states:
The baby boomer that’s 55 or older is making up over 45 percent of our volume now in 2019.