You are trying to create a PowerPivot model in an Excel workbook by fetching data from a .atomsvc file, or you want to data refresh a PowerPivot workbook that has a .atomsvc file in it.
You will get errors when doing the above activities:
"The payload kind 'BinaryValue' of the given data feed is not supported.
Failed to connect to the server. Reason: The payload kind 'BinaryValue' of the given data feed is not supported."
This is a known issue.
A .atomsvc file is just a file that contains a pointer to the real data source, like a SSRS report or a SharePoint list. Instead of creating the PowerPivot data model with the .atomsvc file as the source, simply use a URL to the actual data source.
For a SSRS report it would look something like this:
The ReportServer API is documented at:
Or for a SharePoint list: