By allowing customers to withdraw money in the branch, discounters want to increase their sales and retain customers. But are they really doing themselves a favor by serving?
In more than 20,000 branches of Aldi, Lidl and Co., customers can withdraw money of up to 200 euros alongside their purchases. The only requirement is that, depending on the branch, you have a minimum purchase value of five to 20 euros in your car and pay with your Girocard. This is intended to drive sales and retain new customers. But the question arises as to who really benefits from this strategy.
Who benefits?
The service offers great advantages for customers. On the one hand, withdrawing money – unlike at other banks’ ATMs – is free of charge. And secondly, with bank branches continuing to close, it is easier for them to find a place where they can get cash. The markets themselves cover the fees charged by the banks for the service. Not only do the banks not make a loss, they actually save money by not having to spend money on operating additional ATMs.
But supermarkets also benefit: They can generate higher sales, strengthen customer loyalty and enhance their image. But they have to pay a merchant fee so that the banks guarantee their payment and withdrawals of money remain free for customers. So they could be the ones at a disadvantage because of the service.
However, large discounters and supermarket chains have strong negotiating skills and may be able to abolish the fee model. The banks are likely to play along because it is in their interest to reduce the number of ATMs. It remains to be seen to what extent they will succeed.
Editorial team finanzen.net