Rototype International unveiled its new ATM, the CJD 8000 Cashless ATM to a gathering of bank executives at its Wall Street showroom in New York today.
The changing economic climate is pressuring banks to look for new revenue opportunities to meet its return on equity targets. Moreover, the implementation of tough new regulations such as the Dodd-Frank Act is expected to reduce $27b in annual debit card fees for large banks. Consequently, banks are constantly looking for ways to reduce its cost to revenue ratio in order to remain competitive in the industry.
There are opportunities to explore within the small merchant business segment. While card schemes provide cashless payments via EFTPOS, new non-financial establishments are aggressively promoting mobile payment and Point of Sales (POS) machines featuring mobile wallet integrations. However, these small businesses still face cost challenges such as high transaction fees and high cost of entry.
Rototype's innovation enables banks to tap into this business segment by enabling a new cashless payment transaction using existing ATM networks.
"With Rototype's cashless ATM, your bank enables these small merchants to process cashless payments with the familiarity of a traditional ATM. Retail customers will only need to select the merchant to transfer the cash electronically" said Harres Tan, CEO of Rototype America.
He continued, "What differentiates Rototype's solution from other cashless ATMs or scrip terminals is that the shared ATM dispenses a high security voucher that is presented to the merchant for redemption. Merchants authenticate the voucher validity using Rototype's mobile app and this solution can be integrated into the merchant's existing POS systems."
This approach benefits all stakeholders in the payment process, especially merchants and customers. Every merchant's sales transactions will translate into direct deposits into their operating account - thus reducing the need of handling physical cash. Banks will eliminate cash replenishment headaches and reduce non-interest generating cash in traditional ATMs.
By partnering with these merchants, banks can provide the Rototype cashless ATM facilities surcharge free to the merchants' customers while managing their business operating accounts. This strategic partnership reduces the barriers to entry for these merchants in order to conduct cashless transactions in their business.
The CJD 8000 Cashless ATM is certified EMV Level 2 and ADA compliant, ready for immediate deployment in the US market.