September 21, 2007

Prepaid Card Dispensing ATMs Debut

Interesting solution where ATM utilizes cash dispenser in order to dispense prepaid cards. If so, it's a ready made "additional function" that ATMs could use maybe use to benefit.

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ATMs with prepaid card dispense debut in Phoenix

SCOTTSDALE, Ariz. — Better ATM Services is debuting its patented prepaid-card-dispensing technology at five locations in Greater Phoenix, ushering in a new use for ATMs, the company says. The five locations include Mi Amigo restaurants in Phoenix and Mesa, Ariz., Maycayo's in Scottsdale, and Tavern on Mill in Tempe. The ATM hardware comes from Diebold Inc. Elan Financial Services is running the ATMs.

According to a news release, the technology allows ATMs to be upgraded to dispense prepaid cards through cash trays, rather than requiring the deployer to add a card-dispensing sidecar.

Todd L. Nuttall, Better ATM Services' chief executive, the technology offers retail merchants and financial institutions an opportunity to expand the utility of the ATM without costly upgrades.

"Our technology means ATMs can dispense gift cards, event tickets, transit passes or any other type of prepaid card without investing in additional, costly equipment like sidecars,” Nuttall said. “With the holiday season approaching, we have already received vigorous industry interest.”

The Tower Group estimates that approximately $80 billion was spent on prepaid/gift cards in 2006. Based on Mercator Advisory Group research, that total included the sale of approximately 600 million in-store cards.

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Posted by staff at September 21, 2007 07:02 AM