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Further consolidation among ATM independent sales organizations likely will occur in 2009, according to Gil B. Luria, vice president of research and transaction processors with Wedbush Morgan Securities Inc., a Los Angeles-based financial-services firm. "We've been at levels of saturation for awhile now. It's made the industry more competitive," Luria tells CardLine sister publication ISO&Agent Weekly. "It's safe to assume it will continue to get more competitive. It will continue to consolidate." This year, Louisville, Ky.-based ISO Payment Alliance International acquired Billings, Mont.-based ATM Express Inc., and Portland, Ore.-based TRM Corp. acquired Whippany, N.J.-based Access To Money Corp. The troubled economy, in part, will fuel future consolidation among ATM ISOs, says Luria. Consumers have plenty of choice for obtaining cash, but they do not need to do as many transactions in a slowing economy, he says. The saturated market, coupled with decreased ATM transactions, makes it harder for ATM ISOs to compete, says Luria. For some, the only way to survive is to consolidate, he says.
