During the latter part of 1998 one of the most significant changes in the UK market occurred when a number of IADs entered the cash machine market for the first time. Since this time IADs have been placing a growing number of cash machines in non-bank locations in response to customer demand for greater convenience in obtaining cash.

IADs typically charge a flat rate fee for cash withdrawal. In many cases their machines are located in places where a cash machine would not be commercially viable without this fee and where banks and building societies could not make a sustained business case for machine installation.

IADs have concentrated their efforts on placing cash machines in social and leisure locations, including pubs, bars, nightclubs, newsagents, corner shops, off-licences and petrol stations.

Although public perception of cash machine ownership may associate IADs with off-site installations, there are a small number (123) of IAD-supplied machines located at branches of banks and building societies that have outsourced their cash machine operations.

In 2004, cash machines owned by IADs remained considerably less-used than those owned by banks and building societies. In terms of the total share of the UK cash machine market the IADs share of transactions is small (approximately 5% by volume and 3% by value).