About the ATM market in Canada

There are over 65,000 bank machines in Canada and 18,711 of these are bank-owned ATMs. How did the market develop this way? In Canada, the Interac network enables customers of one financial institution to use ATMs owned by another operator. Originally,

Interac was owned by the large Canadian banks but in 1996, the Competition Tribunal expanded membership eligibility in Interac to increase competition in the market for electronic payment services. This allowed a range of other ATM suppliers to enter the marketplace. Independent cash dispenser operators are now competing aggressively with Canada’s major financial institutions for ATM locations.

Types of Automated Banking Machines

The types of ATMs can be grouped into the following three categories: Full-service ABMs located on the premises of a financial institution: This kind of ATM typically offers deposit, withdrawal, transfer, bill payment and account balance information services to customers from their financial institution and cash dispensing services to non-customers.ABMs owned by a financial institution at an off-premises location: These machines do not generally accept deposits, but typically offer most other services to customers of that financial institution along with cash dispensing services to non-customers.Independently operated cash dispensers: The vast majority of cash dispensers or “white-label machines” are run by private businesses that compete directly with banks and other financial institutions. These machines typically offer only cash dispensing services. 

The bottom line

While the use of online banking continues to grow, ATMs (automated teller machines) remain a popular method of getting cash, making deposits and paying bills for Canadians across the country.

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