We call them cashpoints – or refer to them as the ‘hole in the wall’ but their formal name is: ‘automated teller machines’. Early prototypes weren’t successful. In 1939, Luther Simjian, living in New York, patented his version, the ‘Bankograph’.
This was an automated envelope deposit machine, which accepted coins, cash and cheques, but it did not have cash dispensing features. An experimental one was installed in New York City in 1939, but removed after 6 months, as customers did not use it.
The first ATM was used in 1959 in the Kingsdale Shopping Center in Upper Arlington, Ohio. Over the next three years many variations on the theme were developed. James Goodfellow of Scotland received a patent in 1966 for his ATM; in 1967, John Shepherd Barron invented and installed an ATM in Barclays Bank in London. A year later,
in 1968, Don Wetzel invented an American-made ATM. However, it
was not until the late 1980s that ATMs
caught on as part of the banking
system we have come to know today.
Banks now allow us to insert our ‘plastic’ with a magnetic strip down the side into the machines and withdraw cash regardless of whether or not we bank with them because the ATMs are connected to inter bank networks. Our PINs provide authenticity of who we are.
There are 3 million ATMs used in the world today, or about one ATM for every 3,000 people. ATMs are not so widely used in the Near East and Africa. India claims to have the world’s highest installed ATMs at Nathu La Pass, India, installed by the Union Bank of India at 4,310 meters high. In fact the Agricultural Bank of China has one higher at Nagchu County, Tibet at 4,500 meters high.
The RBS and Natwest ‘GetCash’ mobile apps allow customers who’ve left their cards behind to request cash and a 6-digit pin will be generated. This code is entered at the ATM, and the funds are dispensed. The transition from a cashless society to a cardless society is underway.
Contribution to Retail History
The ATM liberated shoppers from the tyranny of restrictive banking hours and the necessity of going to a bank to obtain cash. Having the freedom to withdraw funds at any time of day or night extended their ability to shop and spend. The inclusion of ATMs inside stores and shopping centers helps increase spend, as customers are not limited to spending only the cash they have with them. The ATM fueled the growth of impulse purchasing and being able to take advantage of opportunistic deals from retailers.