Crypto ATM Market Trends

Growth Drivers

• Expanding popularity of cryptocurrencies - Since many individuals believe cryptocurrencies are safer than fiat money and are easily accessible, their popularity has increased in recent years.As cryptocurrency continues to gain traction, crypto ATMs will grow and play an increasingly important role in this ecosystem as they enable users to purchase or trade cryptocurrencies without having to wait for drawn-out bank transactions in a matter of minutes. According to estimates, there were around 21,843 cryptocurrencies in use as of 2022, up from 50 in 2013, with more than 9,310 of them being active.

• Growing prevalence of startups and crypto investment - To support the expansion of the cryptocurrency exchange, the majority of nations are investing in firms that focus on building cryptocurrency ATMs since they provide a highly reliable source of income and a far greater return on investment than a fiat currency exchange. These elements will thus provide the industry with profitable development potential in the upcoming years.

Challenges

• Huge transaction fees - It is expected that market growth will be hampered by higher transaction charges imposed on users by operators. Crypto ATMs are terminals that accept payments and link to a user's virtual wallet. They are also well known for their high transaction fees, which could be for cash exchange, cryptocurrency exchange, or card processing.
  Most cryptocurrency ATMs impose a fee equal to a portion of the transaction value, which changes depending on the operator, area, and operating costs. For instance, the average online Bitcoin ATM fee charges between 11% and 25% of the total transaction. Compared to online cryptocurrency exchanges, where fees are often less than 1%, bitcoin ATM fees range from around 4 to 14%.

• Limited knowledge available about bitcoin is likely to hamper market growth in the coming years.
• Lack of standardized regulations is estimated to pose limitations on market revenue through 2035.