Coinstar, the creators of a popular self-service coin counting kiosks, has partnered Coinme, a U.S.-based Bitcoin ATM company to let users purchase Bitcoin at kiosks at select locations in the country.
Users can purchase a maximum of $2,500 worth of Bitcoin at these kiosks, which they can then redeem on Coinme’s website. The kiosk will require cash for the exchange; users will not be able to exchange cryptocurrency.
Users will have to select the “Buy Bitcoin” option at the kiosk and enter their phone number, after which they can hand in cash bills. A redemption code will appear which users can redeem at by creating an account at Coinme.
Coinme cofounder and CEO Neil Bergquist speaks how the kiosk can help the average person users buy Bitcoin:
We’re excited to team up with Coinstar to give consumers a convenient and easy way to buy Bitcoin during the course of their daily routines. Bitcoin is now accessible at your local grocery store via Coinstar kiosks, and this offering will make it even easier for consumers to participate in this dynamic new economy.
Coinstar CEO Jim Gaherity said:
Coinstar is always looking for new ways to offer value to our consumers when they visit our kiosks, and Coinme’s innovative delivery mechanism along with Coinstar’s flexible platform makes it possible for consumers to easily purchase Bitcoin with cash.
However, the kiosk does not come without its disadvantages.
Users who make cryptocurrency-ATM transactions are often charged high fees, which can become a big sum when making multiple high-value transactions. Still, for everyday purchases, the ATM could come in handy to those wish dip their feet into crypto-based transactions.
Coinstar operates over 20,000 automated self-service kiosks in 9 countries across the world, including the UK, Ireland and Canada. These kiosks provide a variety of services including cash-to-gift card, coin-to-cash and charity donations.
Described as the first state-licensed Bitcoin ATM company in the U.S., Coinme handles millions in transactions every month. Coinme also has its own token called the UpToken (UP). The company’s intention is to get the masses to join the decentralized financial revolution.
As for Bitcoin ATMs, there are now over 4,000 ATMs across the globe. The Bank of America has also filed a patent to develop blockchain cash ATMs.
While Bitcoin ATM-based transactions have steadily risen, it remains to be seen how much of a mainstay it will become — an outcome dependent on the overall growth and adoption of cryptocurrency.