Surging of Crypto ATMs — A Detailed View

 

A Crypto ATM is a terminal that allows investors to buy or sell cryptos such as Bitcoin, Ethereum, and other altcoins by using cash transactions, bank cards, and payment gateways.

In recent years, there is an upsurge in public responsiveness about crypto supporting the usage of crypto ATMs. The COVID-19 pandemic had a slight impact on the crypto industry, but the industry witnessed a positive rise in the first financial quarter of 2021 as crypto ATMs enabled customers to transfer and receive crypto online without requiring any physical contact.

Rise of Global Crypto ATM

Bitcoin (BTC) ATMs are garnering popularity for assuring ultimate financial confidentiality being tamper-proof and providing an instant way to buy or sell crypto’s. Bitcoin ATMs ensure ultimate security as users need not attach their personal information. Cryptos can be transferred only if the user shares their accurate security credentials. These ATMs are fortified to protect against software and hardware malfunction.

The German crypto ATM market experienced a CAGR of 55% due to the tax benefits for crypto transactions. The cryptos are tax-free if the total profit from private transactions in a year is less than USD 709 and crypto sales held for more than a year are exempted from tax.

The market share of the crypto ATM scanners is improved so that investors can easily set up their wallets and find the wallet address for inbound transactions. Crypto ATMs can do it automatically by scanning the QR code on the smartphone screen instead typing the code manually. This could lead to mistakes and fund loss.

Currently, there are more than 39,000 BTC ATMs all over the world. There are two types of BTC ATMs: Basic ATMs allowing the users only to purchase Bitcoins and Complex ATMs that enable buying and selling of virtual money.

The growing demand for two-way ATMs in the United States (US) market may rise more than 50% through 2028. Crypto ATMs provide features such as high security and multi-crypto funding, for increasing crypto sales at premium prices. The US is perceiving a rise in the adoption of two-way ATMs.

The Asia Pacific crypto ATM market accounts for 10% of the global revenue share in 2021. India and South Korea are investing in startups for accelerating the market expansion of crypto exchanges.

Despite being criticized for lacking regulatory clarity in the Web3 sector, the US currently leading the frontline of bitcoin ATM adoption.

Top Countries Holding Crypto ATMs :

1. United States — 33,549

2. Canada — 2,559

3. Europe — 1,502

4. Australia — 218

5. Poland — 150

6. Spain — 226

7. Switzerland — 145

The major factors that drive the market growth of crypto ATMs are

1. Increase in acceptance of cryptos as a mode of payment

2. Deployment of crypto ATMs in public locations

3. Rise in the usage of two-way crypto ATMs

Also, crypto ATMs ensure rapid transactions so that users receive cash comparatively faster. Crypto ATMs are easy to use and have a simple step-by-step process to help users execute transactions conveniently. The evolving focus of crypto ATM providers on security enhancements to combat potential cyberattacks and ensure secure transactions are additional factors contributing to the revenue growth of the market.

Prospects for key players

Governments across the globe are increasingly focusing on installing crypto ATMs as more and more businesses are shifting toward the crypto ecosystem to meet the growing demand of customers. The increase in the number of collaborations between crypto ATM providers and government bodies to increase global crypto ATM networks is anticipated to increase potential opportunities for key players in the market. Also, the growing emphasis on reducing the scope of boosting compliance and improving the verification feature of crypto ATMs to prevent fraudulent activities and crypto-based criminal activities are expected to open up new paths for major companies and drive market growth.

The road forward

With a significant upsurge in global crypto adoption, many countries are seeking to enhance knowledge and spread cognizance regarding the benefits of cryptos. Propelled by its abundant progression, users are turning to easier and more convenient ways of crypto transactions, which is irrefutably setting off new opportunities for crypto ATMs. Current developments and technological advancements in crypto ATMs would shoot industry growth in the future with more investments by crypto leaders and market shareholders.