Why ‘circular' ATM design means lower costs, less waste

Circularity, the modern industrial version of ‘reduce/recycle/reuse’, is gaining traction around the world in many industries, including the automotive, electronics, chemicals, packaging and fashion/textiles industries. But other large industries still lag behind.



For example, the built environment, which generates about 40% of the world’s waste and about a third of global energy-related CO2 emissions through the construction and retrofitting of buildings, infrastructure, public spaces and modified landscapes, has been slow to change—though the value of the global ‘green’ built environment is approaching $2 trillion. Shifting toward circularity could benefit asset owners, contractors, designers, end users, engineers and material manufacturers by improving construction efficiency, reducing costs, accelerating project timelines, lowering embodied carbon, mitigating climate risks and reducing risks by localizing supply chains, yet progress remains slow.

The principles of circularity

Values framing. Communicating about circularity in the context of the industry principles called “the R-strategies” (also referred to as “the R-hierarchy" or “the R-ladder"):

• Refuse
• Rethink
• Reduce
• Reuse
• Repair
• Refurbish
• Remanufacture
• Repurpose
• Recycle
• Recover

Adhering to these principles can have significant impacts. For example, here’s what some of these “R’s” can do:

Reduce waste and pollution by designing products and processes to last longer, minimize waste generation, reduce pollution through the use of biodegradable materials, avoid toxic substances and reduce emissions—for example, designing components that can be disassembled and easily repaired.

Save manufacturers and their customers money, reduce energy use and reduce pollution by keeping materials in the economy as long as possible.

Restore natural systems and enhance biodiversity by using regenerative practices to restore natural systems. This means more than just reducing negative impacts on the environment, it also includes strategies like using food waste to create compost and return it to the soil to regenerate farmlands. 

The practices of circularity

With these principles in mind, industries and companies are leading the charge on circularity using practices like:

Systems thinking. Considering the connections between different systems within the economy and the environment in decision-making.

If your ATM company talks about circularity but can’t show you results, are they really delivering what you need long term?

Sustainable sourcing. Prioritizing materials that are recycled, renewable or biodegradable to minimize environmental impact.

Life cycle assessment (LCA). Using standardized procedures to assess and quantify the environmental aspects and potential impacts of a product, service or system throughout its life cycle. By considering all the stages of the product's life, from the cradle (raw material extraction) to the grave (end-of-life treatment, LCAs can help identify environmental hotspots, trade-offs and improvement opportunities.

Circularity for ATM design and management

Some ATM manufacturers and suppliers are incorporating circularity into hardware design, sourcing, cash management and maintenance systems to reduce energy use. Here are some of the leading initiatives that are already benefiting financial institutions (FIs).

In-house or third-party LCA tools. By quantifying emissions at each stage of the product life cycle, opportunities to reduce carbon footprints and make informed decisions about materials and suppliers can be identified. At NCR Atleos, we’re beginning to incorporate LCA tools based on learnings from our service systems and research in our technology-focused Innovation Lab, where circularity is a leading priority. We’re now leading the charge to put these models to work for our customers, consulting with large FIs to identify opportunities for reducing emissions and power usage in their operations and processes.

Modular and upgradable ATM hardware design. To extend product life and reduce waste, ATM manufacturers can use LCAs to target design improvements for ATM hardware, such as modular components that make units easier to maintain and repair (for example, replacing a card reader or display or adding features without discarding the entire unit). There is new legislation in Europe to increase the circularity of products and materials. And eventually, there will be targets for certain materials (amount of contained recycled content, amount recycled etc.). By designing for upgradability, the need for full replacements is reduced, leading to important reductions in both emissions and costs.

ATM software saves energy and minimizes service calls. New ATM software can make ATM hardware more energy-efficient by putting it into sleep or low-power mode when demand is low. It can use artificial intelligence for remote diagnostics and to schedule predictive maintenance, which means actually using the data to predict when a part will fail so it can be replaced before failure occurs—minimizing the downtime that tends to result when an ATM unexpectedly needs servicing.

In addition, remote distribution of software updates can reduce the need for on-site visits.

Cash management rightsizing. NCR Atleos completed our first LCA in early 2025, using it to help identify opportunities in our cash management practices and those of the FIs we serve. The resulting metrics point to cash recycling as a key solution. FIs can reduce emissions and save money when the cash balance is just right—when we use the data to accurately predict the demand for cash at a given ATM and extend the time between servicing it accordingly. At NCR Atleos, we can control every aspect of this process other than cash in transit, which is handled by our partner companies that specialize in cash transport and security.

Cash recycling. Because cash recycling ATMs manage deposits and withdrawals simultaneously, fewer cash replenishment visits are needed (replenishment visits are a significant contributor to the CO2e emissions of ATMs). We are now ramping up deployment of scalable recyclers that enable customers to optimize their network performance to support increasingly precise cash management strategies

Regulatory compliance. Governments around the world are tightening their regulations around e-waste and energy consumption, requiring FIs to measure and reduce their environmental impact. Conducting an LCA provides a systematic approach to doing so, helping FIs comply with and stay ahead of these regulations.

Testing and carbon reduction. LCA provides a framework for testing the effectiveness of various sustainability initiatives, such as using renewable energy to power ATMs or implementing more efficient software. By providing hard data on emissions and resource consumption, an LCA can help banks prioritize the most effective carbon reduction strategies.

How circular is your ATM supplier?

The principles and practices of circularity are essential to reducing your environmental footprint, managing your use of resources and creating more sustainable and resilient economic systems as you compete on progressively narrow margins and work to comply with increasingly strict government and industry requirements.

If the company that manufactures and maintains your ATMs talks about circularity but isn’t making significant investments in it on your behalf—including research and innovation to help you stay ahead of evolving issues in energy, financial access and more and real, measurable results—are they really delivering what you need long term?

Benefits to your FI

An increasingly circular approach to ATM operations offers your FI a host of benefits.

Through modular approaches to design, it can extend the useful lifespan of ATMs, which can lower your carbon footprint. By optimizing cash management and energy consumption, it can reduce your operating costs by lowering your fuel and power bills. By recycling and minimizing waste, it can reduce material costs, improving your resource efficiency.

And by demonstrating your commitment to sustainability, it can help you attract customers and investors who appreciate that you respect the environment, do your best to reduce pollution and manage your resources responsibly.