“We know where our members are shopping and we know they shop at GIANT Food stores, which is a very big player in the grocery store business here locally, and Royal Farms is a strong player in the convenient stores space, so we thought this is a great opportunity to increase our brand and to provide convenience where are members are shopping,” Long explained. “And now with our new partnership with Payment Alliance International (PAI), we’ve added about 100 additional ATMS in Pennsylvania primarily at select GIANT Food stores and Royal Farm conveniences store.”

The Louisville, Ky.-based Payment Alliance International (PAI) of the Brinks Company manages and maintains branded ATMs for financial institutions.

“For us the reason we wanted to partner with PAI is that it gives us additional scale and security,” Long said. “By and large most of our business is done digitally, so getting our message out there can be a challenge. So we look at this partnership as an opportunity to increase our brand.”

GIANT Food Store operates about 165 locations throughout the Keystone State, serving communities in cities such as Philadelphia, Harrisburg, Lancaster, Allentown, York and State College. Royal Farms operates 24 convenience stores in Pennsylvania primarily in the South Central and Southeastern regions, including York, Lancaster, Colmar and New Freedom.

What may also enhance PSECU’s ATM strategy is that consumers like in-store ATMs, according to Creative Consumer Research (CCR), a market research firm in Stafford, Texas.

Last year, CCR conducted nearly 400 one-on-one interviews with consumers at store locations with ATMs. Of those who said they visited primarily to shop at the store, more than half said they used its ATM.

Among other important factors that consumers cited for deciding to use an in-store ATM, 62% said they felt the cash machine was secure and safe to use, while 65% mentioned the ATM had no surcharges. Twenty-seven percent cited the convenient location of the store and 11% of those surveyed said the in-store ATM was owned by their financial institution.

PSECU's in-store ATMs will allow members to access cash, check their balances and make money transfers.

The credit union also said it plans to leverage the ATM screens to pitch products and services for members and non-members.

“For the most part, the core function of these ATMs is to dispense cash, but in addition to that we’re going to be able to have our marketing brand and our messages across the screen,” Long said. “So when a nonmember comes up to these ATMs we'll have opportunities to cross sell our services and push our brand to attract new members.”

In addition, PSECU said it expects to leverage ATM-usage metrics to determine the effectiveness of its ATM marketing campaigns for various products and services.

However, it appears the PSECU’s ATM expansion strategy is bucking an overall industry trend.

As of 2024, the United States had approximately 450,000 ATMs, reflecting a 3.83% decline from 2019 to 2022. This reduction aligns with the decreasing use of cash, as the share of American consumers using only cash declined by 30% from 2022 to 2024, and by 58% from 2016 to 2022, according Capital One Shopping Research.

Despite this decline, the ATM market in the U.S. is projected to experience steady growth.

The market size reached $8.1 billion in 2024 and is expected to grow at a compound annual growth rate of 4.6%, reaching $12.6 billion by 2033, according to a global market research and consulting firm IMARC Group in Brooklyn, N.Y. This sustained growth is driven increasing consumer demands for convenient cash access, technological advancements in ATM systems and the expansion of banking networks.

Peter Strozniak can be reached at [email protected].