Las Vegas-based bitcoin ATM manufacturer Robocoin has announced it is lowering its operator fees to 0% as part of a new offer aimed at making its machine owners more competitive on the global marketplace.
Robocoin had previously taken 34% of the transaction fees set by its operators on its bitcoin ATMs, meaning if an operator set fees at 3%, Robocoin would net 1% of those earnings.
As part of the new offering, operators can pay $10,000 for a lifetime license that allows them to bypass fees for life. The $10,000 cost is an introductory price that will run through 30th April.
Alternatively, operators can forego the added $10,000 cost and pay $20,000 for the BTC ATM and 1% of its fees going forward to the company.
Robocoin CEO Jordan Kelley spoke to CoinDesk about the announcement, saying that the measure is proof of its commitment to its customers and to the bitcoin ecosystem at large.
“Our goal of the company is to ensure that our operators are profitable, that they’re operating at the best prices and that we’re building our network around the world.”
Kelley indicated that in today’s fast-moving digital currency ecosystem, the fees being imposed on new consumers are proving to be an obstacle to adoption, one that his company is committed to doing its part to reduce.
The CEO added: “We’re just guys that like to push the envelope.”
Improving overall service
Kelley sees the new, lower fees as yet another reason operators should choose Robocoin over the available alternatives, saying that individual value propositions don’t matter when you consider the overall service a company provides.
Said Kelley:
“You want a machine that has longevity, a machine that doesn’t require you to stand next to it, a machine that can auto-enroll customers with full know your customer (KYC) and anti-money laundering (AML) compliance so that you’re protecting yourself from any regulatory scrutiny.”
Further, Kelley indicated that the move will also open up a new customer base for operators, hopefully enticing the large number of early bitcoin adopters who aren’t keen to pay 7% on a transaction.
Demonstrating commitment
Of course, Kelley also indicated that lowering fees is just another way Robocoin is demonstrating its desire to improve the overall ecosystem.
Said Kelley:
“I think our company takes a serious responsibility when it comes to bringing bitcoin to the world, and that this makes a big statement to anyone who wants to operate a Robocoin that our goal is to offer the best hardware and to ensure that our guys are the most profitable.”
Though operators could choose not to pass along reduced fees to their customers, Kelley suggested that this outcome is unlikely.
“You’re going to be getting a ton of pressure. […] We’ve done the numbers, the numbers look wonderful when you drop fees low.”
Kelley indicated that Robocoin’s data shows a clear connection between lower fees and higher volume.
More in store
Kelley did not elaborate, but hinted that the new pricing model is part of a larger plan that the company plans to unveil later this year, hence the limited run.
Notably, he did return to the subject of remittances, noting that for Robocoin to truly compete in the global remittance market, the 5% to 7% fees imposed by operators on transactions needed to decline.
Further, he added that consumers who remit money through traditional means will typically pay just 3% to 5% on transactions of $400 to $500, potentially indicating that Robocoin has bigger plans beyond simply providing buying and selling services.