SAB In the News
ATMs in a year of financial uncertainty and economic recession - January 6, 2009
by Tracy Kitten - ATM Marketplace
I sat back at my desk this morning to think back on 2008. The year seemed to fly by, which continues to give me pause - pushing me to remind myself that 2007 actually passed (gulp) the Dec. 31 before last. This is 2009, I say!
On my mental quest, I thought back over 2007 and 2008, and how the 24 months that comprised those two years overlapped early on and then broke from one another with might and fervor. It's hard to believe so much could have changed from one year to the next. But it did.
In 2007, the ATM industry was talking about U.S. market saturation, global expansions, and heightened interest in automated deposits and Check 21. The days of Triple DES compliance had finally come to their end and ATM businesses looked ahead, especially to advanced services such as cash recycling and enhanced functions such as bill payment and prepaid-card dispensing.
2008 opened with some whispers about economic recession and how it could impact ATM players in North America. By mid-year, we were all focused on rising fuel costs, complying with murky PCI standards, and watching closely Nautilus Hyosung's buyout of Triton Systems and Pendum's sale to a Miami investment firm.
Before the year ended, we saw four ATM leaders in the independent sales organization space absorbed by larger forces. We also continued to read more about card and ATM comprises, from the 11 suspects who were indicted for their involvement in the well-publicized TJX card breach to the breach of Citibank-branded ATMs operated by Cardtronics at 7-Eleven stores.
But it was not all doom and gloom. Some good news for some ATM players helped the industry close out the year. TRM Corp. comes first to mind. The ATM ISO, which once rivaled Cardtronics, was the Phoenix of 2008, rising from the proverbial ashes in April with its acquisition of Access to Money and then announcing in November its big ATM-branding deal with the Select-A-Branch ATM network.
2009 will likely prove to be an exciting year for TRM, which is now touting its ability to once again rival the continually diversifying Cardtronics.
And Wincor Nixdorf AG, the Germany-based ATM manufacturer that for years has struggled to make a mark in the United States, in May bumped rival Diebold Inc. for the second place position in the global ATM market. Throughout 2008, Wincor Nixdorf said it realized substantial ATM hardware, software and support growth in North America and Asia - two of its key markets.
Diebold Inc. was another positive story. The company, which did not file its 2007 annual earnings, as well as its second and third quarter 2007 financials, until August, came out far ahead of where most industry observers expected. After the defunct United Technologies bid for the company, things for Diebold began to look up.
It was a busy time.
As ATM Marketplace looks back at 2008, we've highlighted the top stories covered during each month in 2008. Of course, we could pinpoint many more, but we simply don't have enough cyberspace.
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