The boom in the Crypto ATM Market will grow at a CAGR of 56.5% through 2030
Convenience in transactions provided by Crypto ATMs
The rising number of crypto users worldwide creates vast market demand. Cryptocurrencies have been witnessing significant traction over the past few years. Many businesses are deploying crypto ATMs at their facilities to gain the benefits that come along. According to some crypto experts, the profitability of cryptocurrencies is much higher than traditional assets.
Attributing to its characteristics similar to those of money and functions, it is popularly referred to as the digital gold, increasing in popularity and making headlines. Citing the increasing numbers of these ATMs installed in every nook and cranny across the globe, MRFR expects the global crypto ATM market to expand at a massive 56.5% CAGR from 2022 to 2030.
Especially in the beginning of 2021, this industry took a major leap, surpassing one trillion dollars in market capitalization, and by the end of Q1, it was doubled, reaching USD 2 trillion. Cryptocurrency ATM (automated teller machine) is a one-stop platform to compare, trade, and convert crypto to fiat. With this significant rise in cryptocurrency comes the need for an ATM that can allow people to buy and sell cryptos easily and safely.
Hosting a crypto ATM in offices can be hugely beneficial to that business for a number of reasons. Having a crypto ATM on the premises enables businesses to drive more traffic to their business and keep up with the pace, leading to increased marketing opportunities and, thus, revenues. Cryptocurrency is expected to continue to garner significant popularity, with more and more people entering this part of the financial world.
Resultantly, the crypto ATM market will generate a substantial revenue pocket in the future. Despite demonstrating vast opportunities, this market still faces strong headwinds in the form of scams. However, governments are increasingly taking initiatives to develop a comprehensive framework to address the emerging risks, which will contribute to market growth in the next few years.
Also, accessing funds by a competing financial institution normally incurs a charge, which is considerably higher. The typical amount of money withdrawn from an ATM per transaction can cost $60 to 80. In 2021, the common complete charges to withdraw money from an out-of-network ATM were $4.55. Individuals who regularly withdraw weekly utilizing the fallacious machine would be charged around $240 per year.
Key Industry Trends to Watch
Crypto fans and crypto companies see these ATMs as an extension of the democratization of finance. The crypto ATM opens the new landscape of exchange and investment to anyone, allowing people to buy crypto with cash. However, as the number of crypto ATMs increases, regulators worldwide have started to raise concerns over unlicensed machines that can serve the interests of money launderers and fraudsters.
Usually, banks and credit score unions deploy ATMs; however, people and small companies can also purchase or lease ATMs through franchises. Also, gasoline station owners deploy personal ATMs, relying on the revenue mannequin these machines can offer. Additionally, they use the ATM to draw shoppers and leverage customer support from financial institution tellers.
Crypto ATMs allow customers to use them to enter their checking or financial savings accounts overseas or virtually from anywhere on this planet. Most ATMs don’t check the trade fee on the receipt, making it troublesome to trace spending. Using overseas ATMs can often obtain an extra favorable trade fee than they might at most foreign money trade places of work.
North America Leads the Crypto ATM Space
North America dominates the global crypto ATM market, hosting many prominent crypto ATM manufacturers. North America also has the highest number of crypto ATMs installed. The US, with the largest number of cryptocurrency ATMs installed, holds the leading market share in the region, followed by Canada. The crypto ATM market in this region will continue to be robust enough.
Looking at the increasing number of scams and vulnerability of these digital assets, the federal government is looking into regulating cryptocurrencies and digital assets. Recently, American President Joe Biden signed an executive order directing agencies across the government to coordinate their efforts to tackle the sinister use of these ATM machines. Also, many companies are collaborating to develop universal compliance standards in the cash-to-cryptocurrency industry.
The Asia Pacific region is rapidly emerging as a promising market for crypto ATMs. Continually rising installations of these ATMs in many APAC countries across the region drive the growth of the market. Moreover, rapid 5G rollouts in many countries push the market size. Also, rising remittances and cash transfers and changing monetary policies in many developing nations in the APAC would offer significant impetus to the market rise.
The developing nations hold great promise for the crypto market. However, there is still much scope in the cryptocurrency domain in industrialized and developing nations. Cryptocurrency investors in the region accentuate expanding crypto ATM business to support the volatile crypto market. They consider different micro and macroeconomic aspects, such as price, demand, supply, and human emotions.
Manufacturers Offer Superior Customer Service & ATMs with Quick Deployment Times
Industry players design machines with industry-leading technology that can meet high-security standards, making them the preferred choice for crypto enthusiasts across the globe. They ensure full control of the entire process, from design to assembly, and provide it with their machines only to gain a competitive advantage. However, the regulatory framework is a key aspect that often challenges the market players.
They strive to develop easy-to-use and affordable crypto ATMs, making them popular among retailers and hoteliers. They focus on increasing their market shares by introducing new features in their ATMs, such as biometric security measures and improved designs. The success of competitive advantage lies in the ability to provide customized solutions for individual users as well as businesses.
For instance, on Aug. 23, 2022, Decentraland, a leading Metaverse platform, revealed its plans to launch the world’s first Metaverse-based ATM developed in collaboration with Transak Payment Gateway and Metaverse Architects Studio. The new Metaverse ATM would enable a more seamless experience, making it simple for consumers to purchase cryptocurrency while navigating Web3.
Cryptocurrencies and NFTs are increasingly garnering popularity. Therefore, Decentraland is constantly developing the technology and tools required to make payments simpler while bridging the knowledge gap for involvement. Cryptocurrency, including crypto coins, tokens, NFTs, and now, the Metaverse ATM, will dominate the Metaverse gaming market and other payment options in the gaming world.