Bank of Hawaii removing its ATMs from McDonald’s

Bank of Hawaii is pulling its ATMs out of McDonald’s systemwide after being a fixture in the fast-food restaurants for more than two decades.

The state’s second-largest bank said Monday the decision was mutual and that by the end of May all but seven of the 65 ATMs in McDonald’s restaurants in Hawaii and on Guam would be removed. The removal of the other seven machines — all in Hawaii — is pending until a nearby location is found, Bankoh said.

Both Bank of Hawaii and McDonald’s said the decision was made due to changes in customers’ purchasing habits.

“Bank of Hawaii and McDonald’s have had a great partnership over the past years and the decision to remove our ATMs from 65 McDonald’s restaurants is a mutual one,” Bank of Hawaii’s David Oyadomari, senior executive vice president of digital channels, said in a statement. “Today, consumer preference is trending toward the use of debit cards and mobile phones instead of cash to pay for food and drinks at McDonald’s.”

The 65 machines represent nearly 14 percent of Bankoh’s ATM network. It will still have 404 ATMs systemwide — the most of any local financial institution — after the removals.

The change was spurred by McDonald’s decision to modernize its restaurants and the incorporation of point-of-sale technology to accept electronic payments.

“McDonald’s is preparing to offer modern, relevant experiences for its customers in the coming months and the ATM removal is part of this plan,” Veronica Kaneko, president and managing director of McDonald’s Restaurants of Hawaii, said in a statement. “We are making way for new mobile ordering payment conveniences our customers can expect to take advantage of in the near future.”

Oyadomari said Bank of Hawaii is replacing hundreds of older ATMs with new advanced-technology ATMs, and many of these are near existing McDonald’s locations.

The bank also is seeking more high-volume sites for its new ATMs, which include a new Cardless Cash feature that allows customers to use their mobile device instead of a card to withdraw cash. Recent ATM installations have included the International Market Place in Waikiki, Stan Sheriff Center, Salt at Our Kakaako, Uptown Wailuku and Longs Drugs in Aina Haina.

Bankoh, which paid an undisclosed amount to rent space at McDonald’s, will still have ATMs in several food and retail chains across the state such as Longs Drugs, Safeway, Times Supermarkets, Costco, Aloha Island Mart, KTA Super Stores, Big Save and Menehune Food Mart.

“An important technological shift is happening,” Oyadomari said. “The role of the ATM as only a cash dispenser has changed to now include the ability to scan deposited checks, count bills of deposited cash and communicate with your mobile phone. As the role of the ATM continues to change, we’ll continue to assess where customers would find the most value in having an ATM.”