BELLEVUE, WA -- Coinstar Inc. is adding a feature at some of its coin-counting kiosks that enables consumers to use them as ATMs for their PayPal accounts. Consumers can add coins and paper currency into or withdraw funds from their PayPal accounts, as well as send money to other PayPal accounts. The rollout began this month in Texas, northern California and Ohio and will expand throughout the year.
Coins and paper currency added to Coinstar kiosks are quickly available in PayPal accounts and can be spent online or in retail stores that accepts PayPal.
Customers can add up to $500 using coins and paper money to a PayPal account each calendar month. Coinstar's standard coin-counting fee of 9.8% applies when coins are added to an account. When using paper money, a $3 fee applies for transactions up to $300 and a $6 fee applies for transactions over $300.
Withdrawals are limited to $500 in a calendar month and $200 a day; each withdrawal incurs a $3 fee.
Coinstar and PayPal conducted a test of the new service in the Dallas metropolitan area last year. Initial test results revealed that 40% of kiosk users who used the PayPal feature went back to use PayPal on a Coinstar kiosk an average of two times a month, according to the companies.
"PayPal on Coinstar exemplifies how we continue to empower consumers to change what they have into what they want," said Mike Skinner, president of Coinstar's coin business."
The company reportedly has more than 20,300 coin-counting locations in the U.S., Canada, Puerto Rico, Ireland and the United Kingdom that process about 50 billion coins a year.
Separately, Coinstar presented a reinvention strategy to investors in late February that aims to double its revenue to $4 billion in five years, according to The Wall Street Journal's Corporate Intelligence blog. The plan includes new types of self-serve machines in new sectors, along with expanded applications for its core Redbox DVD rental business, of which momentum slowed last year, and its namesake coin-counting machines.
The Journal article cited Redbox's joint venture with Verizon Communications Inc. that combines physical DVD rentals with streaming content and a test of local-event ticketing through select Redbox kiosks as key moves in its strategy to spur growth and broaden its market reach. All eyes are also on Coinstar's entry into the food and beverage arena with its Rubi coffee machines that serve Starbucks Corp.'s Seattle's Best coffee. It projects an $800 million market for automated out-of-home coffee, creating space for as many as 70,000 kiosks.
Read WSJ blog here