Global ATM operator Cardtronics announced yesterday (July 7) that convenience chain 7-Eleven notified the company it has no intentions to renew the companies’ ATM placement agreement, which expires in mid-2017.
“We are proud of the service and unique products that we have delivered to 7-Eleven since 2007. While we are disappointed in this decision, we have every confidence in our business and the robust growth opportunities ahead of us,” Cardtronics CEO Steve Rathgaber said in a company release. “We will continue delivering service to 7-Eleven for the next two years while executing our growth strategies.”
Cardtronics confirmed the news is not expected to alter its financial guidance, which was issued on April 30, 2015.
For its next ATM provider, 7-Eleven announced an agreement with Financial Consulting & Trading International (FCTI) of California. FTCI is a wholly owned subsidiary of Seven Bank, the ATM provider for the 7-Eleven stores in Japan. The company’s U.S. stores, both company-owned and franchised, are expected to move to FTCI’s ATM program in 2017.
While it may have lost out on further business with 7-Eleven, Cardtronics is still working on expanding its services through the recent acquisition of Columbus Data Services. The company will operate as a separate division of Cardtronics, processing ATM and payment card transactions for ATM sales and service organizations, as well as financial institutions.
Columbus Data Services’ online management technology gives customers self-service tools for handling their ATM portfolios in real-time.
“CDS has earned a reputation for technology, execution and service excellence and we are thrilled to have the CDS team join Cardtronics. The company’s presence in processing ATMs in independent retail locations is highly complementary with Cardtronics’ strength in the larger chain retail market. We look forward to bringing Cardtronics’ deeper resources, extensive distribution channels and differentiated ATM product set to CDS to accelerate its growth and provide greater value to its customers,” Rathgaber added.