A cryptocurrency ATM is an internet-connected kiosk that allows customers to purchase coins with deposited cash. Some cryptocurrency ATMs enable both the purchase of coins as well as their sale for cash. In some cases, providers require users to have an existing account to transact on the machine. A bitcoin ATM is not the same as an ATM backed by a bank or a traditional financial institution.
It is possible to store the new coins from an ATM on a paper wallet (most of the ATMs will print one during the purchase). It is also possible to store the new coins in a mobile wallet by scanning the QR code of the address directly from your phone.