E*Trade Buys XtraCash ATMs
Banks Can Outsource ATM Placement, Management and Marketing Functions
E*Trade Access, a wholly-owned subsidiary of E*Ttrade Bank, has acquired a portfolio of more than 4,000 ATMs from XtraCash ATM, Inc.
XtraCash had been operating as part of Amicus Financial, CIBC's ill-fated electronic banking venture, since it was purchased by CIBC in early 2001. The sale of the ATM portfolio had been anticipated since CIBC announced plans to transfer its customer deposits and certificates of deposit to E*Trade.
The purchase makes E*Trade Financial the country's second largest ATM deployer, with more than 15,000 machines under contract. E*Trade trails eFunds, which has more than 16,500 ATMs under contract.
According to a news release, the newly acquired ATMs will expand the company's reach in California and the western United States.
"Our extensive ATM network is a real benefit for E*Trade Bank customers, offering convenience and unlimited no-fee access to their money," said Arlen Gelbard, E*Trade Bank's chief banking officer and president, in the release. "Further, the acquisition, which increases the size of our network by approximately 30 percent, solidifies our role as a leader in the ATM industry, while adding to a consistent and reliable source of revenue for E*Trade Bank."