In its first big push to offer financial services in the physical world, E-Trade Group Inc. has signed a deal that would make it the country's third-largest owner of automated teller machines.
The market-leading Internet brokerage firm said Monday that it would acquire Card Capture Services Inc., a closely held ATM deployer in Portland, Ore., which owns 8,500 machines in the United States, Canada, and Mexico. E-Trade plans to convert many of the terminals to "financial services kiosks" that would give customers access to all E-Trade products, which include brokerage accounts, mutual funds, and basic banking services. E-Trade bought Telebank, a prominent Internet-only bank, in January. E-Trade's deal follows a path blazed by American Express Co., which swooped in on the ATM market this year by buying more than 4,000 machines from Electronic Data Systems Corp. of Plano, Tex., bringing its total to 8,672. Miffed at being excluded from Visa's and MasterCard's ATM networks, Amex said it would build its own distribution system.