Stargroup not fazed by ATM fee cut

AN independent operator of automatic teller machines says last month’s move by the major banks to abolish ATM fees has had little impact on its own network or its projected revenues.

Transactions at Stargroup’s ATM network were up 2.2 per cent in the first week after the announcements, chairman Todd Zani said.

The amount of cash withdrawn also climbed, by 2.4 per cent, he said.

Stargroup says its ATM sites are chosen after considering proximity to other ATMs, and are at “convenient locations” such as pubs, nightclubs, service stations and 7-Eleven outlets.

Mr Zani said banks were not interested in those locations for their ATM’s, ensuring Perth-based Stargroup was “insulated in the event of bank policy changes”.

Shares in the Perth-based company tumbled almost a third after the banks announced they were scrapping the ATM withdrawal fees they charged to customers of other lenders. Stargroup shares climbed 0.1¢ yesterday to 2.1¢.