7 Things to Consider Before Hosting Bitcoin ATM
- July 26, 2017
There is no doubt the fact that Bitcoin ATM is making news all over the globe, with every passing time it is breaking new records. In North America and European countries, it is an instant hit, main reason why almost 75 percent of the total Bitcoin ATMs are installed in these parts. In other parts too the popularity of Bitcoin currency is slowly catching up. Experts believe Bitcoin currency comes with a whole lot of possibilities, one main reason why many modern day individuals are favoring it. If you have missed it, be very sure that Bitcoin ATM business is exploding everywhere.
From South Boston to South Korea, Bitcoin ATM machines are increasingly gaining traction in the market. This is giving most modern day users the opportunity to use this new currency for all day to day transactions. Buying and selling Bitcoin is very easy these days, and there are many portals as well as BTM kiosks installed in popular locations to help you. In the United States, the popularity of Bitcoin is at its peak, to be exact, there are around 628 Bitcoin ATM machines already installed. This is more than 50 percent Bitcoin ATM machine installed around the globe. This figure tells you everything.
Growing demand in the US
In this part of the world, BTC ATMs are already a hit. It is providing users that first taste of buying as well a selling bitcoins. There are millions of customers who are using Bitcoin currency, and they are accessing BTM kiosks on a regular basis. Using these BTM kiosks, many are buying as well as selling this particular digital currency as per their convenience. But the main goal is to take this to millions other in the world. For that, you need to promote this new currency and install more Bitcoin ATM machines in locations which are not yet covered.
This mission, in turn, gave rise to many new players in the business, they are namely the suppliers of Bitcoin ATM machine such as Genesis Coin, Robocoin, and Lamassu. Apart from these popular business groups, there are a countless number of local operators who are eyeing this new business venture. Many operators have already started their own networks of machines around the country, set-up latest Bitcoin ATM machines in all high traffic locations. Several options are coming up for operators where they can setup Bitcoin ATM machines. This is definitely one good venture to start that brings you huge profit in a quick stance of time.
Things to consider
Based on the operator and how far they are willing to go for promotion or advertisement there are many new ideas available. Operators can tie-up with popular shopping malls or brands to host their Bitcoin ATM machines. This will help both groups in the long run. Striking up a partnership with all established business and Bitcoin operators is definitely a good idea. There are many popular stores and locations around the country where Bitcoin ATM machines can be hosted; this will help both businesses grow with time. Also, take into consideration the help Bitcoin users will get from such collaboration or partnership.
According to Jordan Kelly, CEO Robocoin there has already been a surge in demand from local or small merchants who are demanding to be introduced with ATM operators. Interestingly many are eager to pay money for fixing meetings. This shows the demand and how beneficial it is for local business groups. As per reports such hosting of Bitcoin ATM machines is helping business owners to get more traffic and sales, alongside they are much good money from Bitcoin ATM booths too. Many business owners say that the figures and benefits of hosting Bitcoin ATM are compelling.
As per company reports, Lamassu shipped more than 250 one-way Bitcoin ATM machines, Robocoin similarly launched an incentive program where they are offering huge discounts on two-way Bitcoin operators for all new customers around the globe. This is a good option, and there are some great deals on offer for small companies that are willing to host Bitcoin ATM machines.
Manufacturers and operators
With time many Bitcoin ATM manufacturers are coming up, and each of them has different specification of models available in the market. However, the responsibility of Bitcoin operators remains the same. For any Bitcoin ATM manufacturer, the task is to design, produce and sell Bitcoin machines to different operators, on the other hand, operators need to handle compliance and local marketing. As per one of our experts, every Bitcoin operators have three jobs to do:
- The first task is to make sure they are fully complying with all necessary laws in their particular jurisdiction
- Secondly, they need to make sure their customers are happy by finding some of the best Bitcoin ATM locations as well as helping customers learn many new things about this digital currency
- Thirdly to ensure owners never run out of stock, so that users don’t have to go out for Bitcoins.
Though the basic formula seems to be quite straight and easy but winning minds and hearts is not that easy. The toughest thing about this new currency is that it is continuously facing bad reviews from some section of the market and press.
Keeping aside all these negative feedbacks or reviews, there are much more positives to focus on. The growing craze and popularity of Bitcoin ATM machines in many places around the globe are getting the attention, luring small business owners to host Bitcoin ATMs at their stores or shops. This is definitely a good idea, and it will help their business to grow in a certain point of time. All you need is to follow some of the basic things and start up this new venture. Many business owners are excited about this whole idea, and they are eager to pay money to operators.
Alongside all these benefits there are some key things to consider before you start up this venture. This discussion provides a detailed overview of some of the major points every merchant should consider as they take up this new venture of hosting Bitcoin ATM machines:
This may sound to be ironic but many Bitcoin ATMs around the world face security threat from all high volume of fiat currency. Robocoin ATMs which is known to allow both Bitcoin to cash and cash to Bitcoin transactions house up around 2,200 bills.
Lamassu Bitcoin ATM which is considered to be a Veggie Galaxy is basically one directional system that accepts only cash for Bitcoin. According to our sources, it holds something around $5,000 to $10,000.
Many experts realize this potential risk, and hence they are emphasizing on the security to increase consumer adoption. There are many instances where customers are walking up to these Bitcoin ATM machines with hundreds of dollars. Operators need to make sure that customers are feeling comfortable and it means they are in a safe and secure environment. To satisfy this concern, some of the experts suggested setting up a firm for the level of cash it could keep in the Veggie Galaxy.
Proper supervision of Bitcoin ATM is important if you want to get good returns from this investment. There are many business owners seen hosting Bitcoin ATMs in stores and shops, make sure you supervise it on a regular basis. There are may be several issues or complications coming up with the device; proper supervision will help in fixing such problems in quickest possible time.
As per a business owner who is hosting Bitcoin ATM in Toronto says that he installed Robocoin Machine in this 5,500 square foot store and the machine was not perfect. There were several issues reported with this Bitcoin ATM receipt printer, and it led him to stop using the functionality. The owner is willing to give his patience to the machine, and he is suggesting other business owners too the same thing.
According to a Zurich based Lamassu Bitcoin ATM owner, Bitcoin ATM machines do get benefitted from regular supervision, and it is important for the owner to find some time and supervise every aspect. It doesn’t take much time to manage every aspect of the ATM. If things are not going properly, it is important that you restart the machine if necessary.
The crucial thing is if you are planning to host Bitcoin ATM at your store or shop make sure you take the responsibility to supervise the machine on a regular basis. This will help the system to run properly and thereby help your customers to get benefitted. Not much effort or time is necessary to supervise Bitcoin ATM machines; all that is needed is your zeal!
For any busy merchant chances of keeping an employee, resources are very rare, but customer support is something that needs to be considered. Providing this function is important so that all concerns and issues can be addressed properly. When you provide this function, it could detract business’s main revenue system. Many business owners around the world are known to host Bitcoin ATM was worried about liabilities for dealing customer disputes and issues.
Having suitable customer support is important, and for business owners who are hosting Bitcoin ATM machine at their store, it is not an easy task. Though many business owners are looking at the brighter side of making extra money or increasing traffic with Bitcoin ATM machines at their store, very few will understand the importance of proper customer support. There are many instances where there are disputes, and it is important to resolve it quickly. Having suitable support service, even to answer simplest of questions or concerns can be useful.
Some of the business owners are complaining the fact that Bitcoin ATM machine is not like any regular ATM. At times you need to do some hand-holding with few people. Experts are suggesting of phone support services to common customers so that they don’t have to face direct questions from BTC ATM users.
Installation of Bitcoin ATM Machine in stores is another big concern. Many store owners are excited about this business opportunity, but it brings along some complications which you realize with passing the time. Most of the Bitcoin ATM machines are above 500 pounds, and it needs special assistance to get it installed. Following some of the basic installation, techniques are necessary to increase the security of your ATM kiosks. For instance, Robocoin official website advises owners to bolt Bitcoin ATM kiosks in the ground with mounting blocks. For such special installation, you need to take the initiative and make necessary changes.
Some of the store owners are also saying that installation process takes more than weeks and it needs your supervision, very few business owners will get time to focus on such works. Apart from that, it is important to install all necessary security systems so that it can help you to monitor any security breaches. Many business owners are seen installing additional surveillance devices for every Bitcoin unit so that they can easily guard it against theft or related problems. However some owners believe it to be optional, many business owners didn’t install surveillance systems to protect their machines at all. Some store owners are saying that they need the machine to be plugged in. As it is their own store and hence they don’t feel the need to bolt it down.
The next most important thing that needs to take into consideration is the visibility of your Bitcoin kiosks. Installation of BTM kiosks in proper location is important, it should be clearly visible to users, and they should feel comfortable to use it. Find a suitable way to adjust this Bitcoin ATM in your store, in many stores customers hardly realize that there is a Bitcoin ATM installed. As a store owner, you need to make sure your customers don’t feel the same.
There are some owners maintained the fact that keeping Bitcoin ATM too close to the front door or entrance may inspire attacks or thefts. On the other hand putting the device too far inside the store many not help you get much attention. These are all crucial things you need to consider while selecting the location within your store. Visibility of your Bitcoin ATM is quite important, and it can create a huge impact on your BTM kiosk usage.
In most cases, we found that the best place to position Bitcoin ATM is near the main cash register. Though cash counters are always full of customers and it may happen that the BTM kiosk is not noticed, make it visible enough to your customers.
Another most important thing that every store owner needs to consider is criminals using their Bitcoin ATM machines. Some BTC ATM manufacturers say that they are complying with KYC regulations to ensure that machines are used as per the law. However, with time many security features are adding up with most Bitcoin ATM machines which make transactions safe and hassle free. As per the CEO of Genesis Coin ATMs they are offering enhanced security features with all Bitcoin ATMs such as biometrics that makes it much safer than all traditional cash ATMs.
Another expert suggested that it is good enough to impose KYC level security. Some of the Bitcoin ATMs are limiting maximum transaction to around $2000 per day, and they are tracking their phone number. By taking customer phone numbers, it is ensured that they are not going over the limit that is imposed on most of the Bitcoin ATM machines.
In addition to housing the Bitcoin ATM machine, store owners will also need to pay for its power supply, internet connection and use suitable insurance policy cover. These are all added costs which every store owner needs to take into consideration before starting up this new venture. All these extra costs every store owner needs to bear should be drawn into the attention of operators so that rental agreement can be established.
Before you start signing up for Bitcoin ATM machine at your store all these crucial things should be taken into consideration. There is no doubt the fact that Bitcoin ATM machines are becoming popular in many places around the globe and it gives your business an added advantage. Alongside it comes with extra responsibility and headache, every business owner needs to understand whether they are ready enough to take that headache or extra responsibility. When you understand these potential added costs and accordingly divide responsibilities between different parties, it can help the agreement to foster for a longer period.
Many store owners are coming up who are signing up an agreement for a trail period to check how everything goes.