The Federal Reserve Board gave Electronic Payment Services Inc. permission to provide the software and telecommunications channels needed to dispense mutual fund shares, insurance policies, prepaid phone cards, concert or public transportation tickets, and other products through automated teller machines.
Electronic Payment, based in Wilmington, Del., operates the MAC electronic banking network. It is owned by Banc One Corp., Columbus, Ohio; KeyCorp and National City Corp., both in Cleveland; CoreStates Financial Corp., Philadelphia; and PNC Bank Corp., Pittsburgh.
The Fed previously has allowed banks to provide the data processing for credit card transactions and other, more traditional, types of ATM transactions.
In its July 1 order, the central bank said expanding the range of services available through ATMs would "allow consumers to purchase products at additional locations and during non-business hours."
Merchants, too, would have new sales channels while ATM operators would earn more fee income, the Fed said.