Summary
1. C-Stores (Convenient Stores) and Drugstores are the lastest trend big banks are using to brand their ATMs, eliminate surcharge fees for their customers and make cash accessible to their customers wherever they shop.
2. Chase and PNC inked agreements with Cardtronics to brand Chase and PNC ATMs at drugstores, in NY, NJ, IL, and PA, which allows Chase & PNC customers to withdraw cash without paying a surcharge fee and provides convenience for their customers, while building their brands
3. Cardtronics has agreed to service and maintain the Chase & PNC branded ATMs, which allows both banks to build their brands in C-Stores and drugstores like Walgreen's and Duane Reade, while providing their customers with surcharge free transactions
Analysis
C-stores (Convenient Stores) like 7-Eleven has inked agreements with NCR, Triton & Cardtronics to provide ATMs and financial kiosks, to reach the unbanked customers and provide "top-off" services like Pre-pay minutes replenishment, bill pay for electric and telephone bills and Western Union transfers.
Big Banks are investing in cheaper ATM fleets and using ISOs (Independent Sales Organizations) like Cardtronics, Triton and others to service, maintain and place their branded ATMs in C-stores (Convenient stores) and gas stations, to reach customers who typically don't have a bank account and address their customers concerns over paying surcharge fees at non-branded ATMs.
Chase and PNC realizes this is a great opportunity to reach the unbanked customer at C-stores, and gain market share, while meeting their customers expectations of surcharge-free transactions.
