Just one short decade ago, buying cryptocurrency meant fumbling with complex digital wallets and exchanges. Today, thanks to companies like Coinme, customers can purchase bitcoin at their local grocery store as easily as they’d buy a gallon of milk. This transformation stems from Coinme’s innovative approach to API integration, which has turned ordinary retail kiosks into crypto access points.
The shift from complex cryptocurrency transactions to getting cash for retail purchases from a Coinme-powered ATM represents a significant evolution in digital asset accessibility. While major crypto exchanges focused on building sophisticated trading platforms, Coinme recognized a fundamental gap in the market: the need for simple, trustworthy crypto access points in familiar retail environments. This insight has proven particularly valuable for businesses seeking to offer cryptocurrency services without building complex technical infrastructure from scratch.
Through integrations with Coinstar kiosks and MoneyGram outlets, Coinme now provides crypto services at thousands of locations across 48 U.S. states, effectively creating one of the largest crypto point-of-sale networks in the world. The company’s approach demonstrates how technical innovation, when properly aligned with retail infrastructure, can transform the way businesses and consumers interact with digital assets.
Building the Infrastructure
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Founded in 2014 by Neil Bergquist and Michael Smyers, Coinme started with a single bitcoin ATM in Seattle. Rather than deploying dedicated crypto ATMs across the country, which would have required significant capital investment, Bergquist’s team developed enterprise software that could transform existing financial infrastructure into crypto service points.
“Why deploy crypto-specific ATMs when you can just crypto-enable all the existing ATMs?” Bergquist explained when discussing the company’s pivot from hardware to software solutions. This approach has proven remarkably successful: Coinme now powers crypto transactions at over 40,000 physical locations across the United States.
The Technical Integration
At the heart of Coinme’s retail success lies its crypto-as-a-service platform. The company’s API infrastructure enables traditional financial service providers to integrate cryptocurrency capabilities into their existing systems seamlessly. According to recent company statements, this enterprise-grade API effectively “crypto-enables” both digital and physical financial infrastructure.
The platform handles complex aspects of cryptocurrency transactions that might otherwise deter retailers or customers. “When you create an account with Coinme, you’re also creating a wallet,” Bergquist shared. “And so, when you put cash in the machine to buy bitcoin, we just deposit it into your Coinme wallet. You don’t even need to know what your wallet address is, and we handle that complexity, so it feels more like a bank deposit experience.”
Coinme’s most notable integration success came through its partnership with Coinstar in 2019. Rather than building new machines, Coinme installed its API to enable bitcoin purchases on existing Coinstar kiosks. This move dramatically expanded the company’s reach from 70 to 2,100 locations almost overnight. By 2022, over 7,000 Coinme-enabled Coinstar kiosks were operating in 48 states.
The company achieved another significant milestone through its 2021 partnership with MoneyGram, enabling cryptocurrency services at approximately 20,000 additional locations. This partnership proved so successful that MoneyGram acquired a 4% stake in Coinme in 2022, demonstrating the value of Coinme’s technical infrastructure to traditional financial services providers.
Simplifying the Customer Experience
The API’s design prioritizes user experience while maintaining security and compliance. Recent updates have further streamlined the process. In early 2024, Coinme announced that crypto purchases made at over 9,700 Coinstar kiosks would be automatically loaded into users’ digital wallets, eliminating the need for redemption codes.
“Anyone who has ever sent bitcoin or digital currency on-chain, I think, can agree that it’s scary,” Bergquist acknowledged. “You’re entering in a 16-character alphanumeric phrase. You’re copying and pasting it into a little box and then you’re clicking confirm. And once you click confirm, there’s no going back.” Coinme’s API integration removes these intimidating technical barriers.
For retailers and financial service providers, Coinme’s API offers several advantages. The platform handles regulatory compliance, security, and technical complexity, allowing partners to focus on their core business while offering crypto services. This approach has contributed to remarkable growth. Coinme achieved an average annual revenue growth rate of 164% over its first decade, recently celebrating $1 billion in total retail sales.
The company’s reach now extends to approximately 90% of the American population, with a Coinme location available within roughly 5 miles for most citizens. This accessibility has made Coinme’s API integration an attractive option for businesses looking to enter the crypto space without significant technical investment.
Expanding the API Ecosystem
As cryptocurrency adoption grows, Coinme’s API strategy positions the company to facilitate further retail integration. Recent partnerships demonstrate the platform’s scalability: In early 2024, Coinme announced a collaboration with global digital payments platform CiNKO, highlighting the potential for international expansion.
“I think focusing on trust and a partner network is really important,” said Bergquist. “The reason why we’re in the largest grocery retailers in the United States is because we’ve solved the trust problems and we make crypto safer, we de-risk it, and that’s why we have these massive partnerships in place.”
