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How To Start An ATM Business: Here’s A Step By Step Guide

How To Start An ATM Business: Here’s A Step By Step Guide
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In this article, we have covered all the details of starting a successful ATM business. It covers information related to its profitability, legalities, setup costs and more. Starting an ATM business is a big deal, and this article will help you learn how to get things done the right way.

You can earn passive income with ATMs. Want to know how? Here’s an ATM business startup guide. ATM stands for Automated Teller Machine. It is an electronic machine or an electronic banking outlet that allows its users to perform financial transactions such as deposits, withdrawals, fund transfers and balance inquiries at any time. This does not require any professional or bank staff to make transactions. You can make money by installing an ATM and fulfilling some legal requirements. Every time you see a bank ATM with names such as PNB, SBI, HDFC, AXIS, ICICI and more, it is not always installed by the banks themselves. You can also install an ATM and earn money.

What Is An ATM Business?

An ATM business can provide monetary benefits if you install a machine, and every time a customer makes a transaction using that ATM, a convenience fee will be charged. You can collect that fee, which is paid daily. A higher number of customers leads to a higher profit. 

Is An ATM Business Profitable?

Running or starting a business involves risks and challenges. No matter how small or big your entity or startup is, you might struggle to make it profitable enough. Getting profits from an ATM business may depend on a lot of factors, such as transaction volumes, location, operating costs, technological trends and more. If all these factors are in your favour, then your ATM business will generate a good amount of profit.

How To Start An ATM Business: Here’s A Step By Step Guide
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There are a lot of legalities that you need to fulfil before setting up your ATM business.

  • You must have a minimum space of 60 to 100 square feet to set up your business. 
  • Registering your business is the very first step you need to take. It is to be registered that the business you are going to set up is solely owned by you or if there is the involvement of a second or third person. 
  • A licence and business permit for ATM business are necessary. The licences may depend upon the location, such as state or regional licences.
  • A new bank account for all the funds that are generated by the ATM business. It will be easy to track all the transactions and daily income generated.
  • Make sure to insure your business, as it is a very crucial step. It involves several types and a lot of things to be taken into consideration.
  • Choose the type of automated teller machine you want to set up. Several types of machines have different features and fulfil selective purposes.
  • You need to conduct proper research before entering into this business about machines, licences, locations and more.

ATM Business Setup Cost

You need to pay a sum of Rs 2 lakh as a security deposit and around Rs 3 lakh as operating capital after you get permission for the ATM franchise. According to the policy, you’ll be paid Rs. 2 for each non-cash transaction, such as the transfer of funds and checking of the balance. Rs. 8 will be given to you for transactions related to cash, such as deposits and withdrawals. Approximately Rs. 5 lakhs are required along with the legal permissions to set up an ATM business.

Best Locations For ATMs

Best Locations For ATMs
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Choosing the right location to set up your machine plays a vital role in establishing a successful ATM business. The appropriate location will attract more customers and eventually lead to a higher number of transactions and a good profit. Some examples of the best locations to set up an ATM are

  • Near gas stations
  • Grocery stores, as many people tend to pay cash for their groceries instead of using their credit and debit cards.
  • Nightclubs and bars because they spend more money while visiting such places.
  • Near hotels, many tourists and visitors try to find an ATM nearby and get access to some cash, as they do not always carry a lot of it with them
  • Banks are perfect locations, as people visit banks for various monetary purposes and sometimes need cash for transactions or more.

Also read – How to Earn Money Online Without Investment? 13 Passive Income Streams

ATM Business Maintenance and Marketing 


When it comes to the maintenance of an ATM, you need to consider several factors, such as

  • Make sure to check if the machine is getting damaged or if there is any wear and tear.
  • Keep the software of the machine updated so that it does not cause any inconvenience
  • Get it cleaned every day or once a week to remove any sort of dirt and dust from the place.
  • Check the functionality of the ATM, including buttons, card reader, etc.
  • Keep a backup for power and electricity.
  • Security audits are a must to avoid any cyberattacks on the machine.
  • Inspect the ATM at regular intervals and notice irregularities, if any.


You can create several marketing strategies to promote your ATM business so that more people will get to know about it and might become your customers too. 

  • You can offer your customers additional services such as bill payment, mobile banking and money transfers with ATMs.
  • You can create a customer loyalty programme and offer cashback and discounts when a customer uses your automated teller machine.
  • Determine your target audience so that you can apply marketing strategies accordingly. 

Final Thoughts

If you are planning to have an ATM business, then do consider the above-mentioned factors. Owning this type of business will give you passive income and will not require much of your effort and time. Also, make sure to provide regular maintenance and develop a great marketing strategy. Careful planning, management, and market research will lead to a successful ATM business. You need to promote your business after setting it up so that its visibility is enhanced and will increase the trust of your customers. 

Janhvi Malhotra, a seasoned copywriter, business writer, and proofreader, has attended St.Francis College of Women to obtain a Bachelor of Arts in Psychology and Political Science. With a certification in content writing from Education and Career Times (ECT), she brings academic knowledge and practical expertise to her work. Presently, she is working as a business writer at The Active Noon, drafting explanatory articles on entrepreneurship and finance. Janhvi’s determination to provide clear and concise articles shines through in her writing.