New crypto ATM operator opens 400 machines across the US with a flat 5% fee, undercutting the 12% to 15% it says rivals charge

A new crypto ATM operator says it has put more than 400 machines live across the US with a flat 5% fee, well below the 12% to 15% it claims is typical. Lowest Fee Bitcoin ATMs, which opened on Oct. 1 in states including Florida, California, Arizona and Texas, sells Bitcoin, Ethereum, USDT and USDC for cash.

Lowest Fee Bitcoin ATMs opens with 400-plus locations

Lowest Fee Bitcoin ATMs said its first phase includes more than 400 machines installed in convenience stores, gas stations and shopping centers. The company described the rollout as one of the larger initial deployments by a Bitcoin ATM operator in the United States.

“Four hundred machines is not a pilot. It’s a network,” said Quincy Mathis, Operations Manager at Lowest Fee Bitcoin ATMs.

Mathis said the company wanted to establish a broad physical presence alongside its lower-fee model, arguing that transaction costs are less meaningful to customers if machines are difficult to access.

“We wanted to be one of the biggest Bitcoin ATM operators in the country on the day we opened, because a low fee only matters if there’s a machine near you. This is phase one,” Mathis said.

The company said its machines allow customers to purchase four digital assets with cash: Bitcoin (BTC), Ethereum (ETH), Tether’s USDT and USD Coin (USDC). Transactions are sent directly to the customer’s own wallet, meaning the operator says it does not hold customer funds.

Customers can use the machines without a bank account or credit card. The company describes the ATMs as non-custodial.

Lowest Fee Bitcoin ATMs said transaction limits vary according to verification level. Customers using only a phone number can purchase up to $2,000 per day, while customers providing a government-issued ID and Tax ID can transact up to $50,000 daily.

Lowest Fee Bitcoin ATMs targets the fee gap

Fees are central to the company’s launch strategy. Lowest Fee Bitcoin ATMs said its machines charge a flat 5% fee, while claiming that typical US Bitcoin ATMs charge roughly 12% to 15%, with some large operators charging 20% or more.

The company said the comparison becomes significant for customers making larger cash purchases. On a $1,000 transaction, a 5% fee represents $50 before any exchange-rate considerations, while a 20% fee would amount to $200.

The operator cautioned that its comparison is based on posted percentage fees and does not account for exchange-rate differences. It said some ATM operators may also add a markup through their exchange rate.

Lowest Fee Bitcoin ATMs said its machines display both the fee and exchange rate before a customer confirms the transaction, allowing users to see the cost before proceeding.

“We wanted a rate people can look at on the receipt and feel good about, not one they have to make peace with,” Mathis said. “Five percent, shown up front, with the exchange rate right next to it. That’s the whole pitch.”

The company is therefore using Lowest Fee Bitcoin ATMs not only as its brand name but also as the central proposition behind its market entry.

Lowest Fee Bitcoin ATMs expands stablecoin access

The operator is also emphasizing stablecoin transactions, saying some customers are using its machines to purchase USDT and USDC for transfers to relatives, suppliers and contractors abroad.

According to the company, customers can insert cash and send the purchased stablecoins directly to another wallet. Recipients can then hold the dollar-pegged assets or convert them into local currency where available.

The model is presented as an alternative to conventional international transfers, which can involve bank accounts, wire services and longer processing periods.

The company said the cost difference can become particularly important for recurring remittances. It calculated that someone sending $1,000 every month would pay approximately $600 annually in fees at a 5% rate, compared with $1,440 to $1,800 at a 12% to 15% rate and $2,400 at a 20% rate.

Those calculations are based on the stated percentage fees and do not account for other potential costs or exchange-rate differences.

“The people using stable coins to support family abroad are exactly the people who shouldn’t be paying 20% for the privilege,” Mathis said.

Lowest Fee Bitcoin ATMs introduce online pre-registration

Alongside the physical rollout, Lowest Fee Bitcoin ATMs has introduced online pre-registration for first-time customers.

The company said registration takes about two minutes and allows customers to enter their phone number at a participating ATM rather than completing the onboarding process from scratch at the machine.

After registration, customers select an asset, scan the QR code for their wallet, insert cash and review the transaction details. The fee and exchange rate are displayed before confirmation, according to the company.

Customers who do not pre-register can still complete registration at the ATM.

Lowest Fee Bitcoin ATMs said its machines operate as part of a FinCEN-registered money services business and are designed to comply with applicable federal and state regulations. The company also said customer data is encrypted and transactions are non-custodial and irreversible.

The company warned customers that government agencies, banks, utilities and technology-support providers will not ask people to make payments to them through a Bitcoin ATM, and said requests of that nature should be treated as scams.

The initial network of more than 400 machines is now live, with the company saying additional rollout phases will follow. Customers can locate machines and complete pre-registration through the operator’s website.

The company is also offering new customers a promotional code, “LOWEST,” which it says reduces the transaction fee by 20% at participating machines.