DALLAS–7-Eleven Inc. said that it will be making a change in its huge ATM business, moving away from Cardtronics, which operates the Allpoint Network, in favor of a network owned by its Japanese parent company. The announcement caused Cardtronics’ stock price to initially decline 15%.
The change is not to take place until 2017, but it could affect relationships involving credit unions, including with CU24 and with a number of state leagues. The move does not effect CO-OP Financial Services, which operates close to 2,000 shared branching kiosks in 7-Eleven stores in the U.S.
Cardtronics operates 7,500 ATMs inside 7-Eleven stores in the United States, which is the company’s biggest customer, representing 17% of its annual revenue.
7-Eleven is shifting the business to Financial Consulting and Trading International, which is owned by Seven Bank, which in turn is also owned by 7-Eleven’s parent company, Saven & I Holdings. 7-Eleven already uses FCTI as its ATM provider in Japan.
The news is not a complete surprise. Cardtronics’ executives had indicated in the past that the change might occur.