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Thursday, February 28, 2013

When kiosks become ATMs

Coin-to-card kiosk operator Coinstar Inc. and alternative financial services provider PayPal Inc. may have just redefined the ATM. The companies have embarked on an initiative that allows PayPal users to deposit and withdraw money from Coinstar kiosks, as well as send money to other PayPal users. The service is currently available on kiosks in Texas, Northern California and Ohio.

Users can deposit both coins and paper currency into PayPal accounts via the kiosks. The program allows customers to add up to $500 to PayPal accounts each calendar month and $200 per day. When PayPal users employ the kiosks to withdraw funds, the kiosks dispense vouchers that customers then take up to registers for redemption.

When coins are added to PayPal accounts, Coinstar charges a coin-counting fee of 9.8 percent. A $3 fee is applied for paper money deposits of up to $300; for deposits over that amount the fee doubles. The companies said the fees for the deposit to/loading of accounts are "among the lowest in the highly competitive prepaid market."

Coinstar and PayPal said the service was piloted in the Dallas area in 2012 and "quickly saw adoption and interest from users," with 40 percent of kiosk users who tried the PayPal feature returned to use the feature an average of two times per month.

"PayPal on Coinstar exemplifies how we continue to empower consumers to change what they have into what they want," said Mike Skinner, President of Coinstar's Coin business. "From the convenience of a grocery store, consumers can turn their coins and paper currency into digital spending power anywhere PayPal is accepted." end of article

Editor's Note:

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