Pennsylvania State Employees Credit Union plans to open automated teller machines in 36 Wal-Mart Stores Inc. locations across the state.

The Keystone State's largest credit union signed a contract with Wal-Mart, the largest U.S. retailing organization, on Aug. 15. The machines should be installed in Wal-Marts and Sam's Clubs by November.

Financial terms were not disclosed.

The cash-dispensing machines will be a revenue source for the credit union, said Gregory A. Smith, president of the $925 million-asset institution, which has 180,000 customers in the state.

"We don't expect our members to be the primary users of the machines and we want to generate interchange revenue" from noncustomers, Mr. Smith said.

Mr. Smith said installing the ATMs would cost between $900,000 and $1 million.

The credit union opened an ATM in a Harrisburg Wal-Mart 18 months ago, and now has ATMs in four Wal-Marts.

Mr. Smith wouldn't say how much revenue the ATMs have generated. But each machine handles between 5,000 and 6,000 transactions a month, he said.

The credit union operates a network of 11 ATMs.

This is the largest such arrangement between a credit union and Wal-Mart, said-Mike Cook, ATM manager for the retailing organization.

"We have agreements with other credit unions, but nothing of this magnitude," he said.

Mr. Cook cited the credit union's size and performance at existing ATMs as the reasons WalMart chose it for the expansion.

Mr. Smith said he is following Centura Banks Inc., Rocky Mount, N.C., and Boatmen's Bancshares, St. Louis, which have ATM agreements with Wal-Mart.

"The knowledge other institutions think this is the way to go helped," Mr. Smith said.

Mr. Smith said the credit union might eventually install ATMs that take deposits and perform other functions, but has no immediate plans to do so.

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