Momentum in NZ ATM market

While two of New Zealand's banks are yet to agree to terms to open up their ATM networks, one independent deployer has won new investment of almost NZ$1 million from a similar company in Australia. Customers Limited yesterday said it bought new shares in New Zealand ATM Services Limited, which will take the former's holding in the latter from nine per cent to 34 per cent.

Almost all automatic teller machines in New Zealand are owned by banks and mostly still located at bank branches. ATMs located away from bank premises are uncommon, and independently owned ATMs even rarer. NZATM has 92 such ATMs, according to the announcement by Customers to the ASX, and says it has signed 500 contracts with merchants.

One obstacle to the business model is the reluctance of banks to allow their cardholders to use independent ATM networks. Bank of New Zealand and Westpac have opened up their networks. ANZ National and ASB are yet to do so, though ANZ may be closer to working out terms.