ATM Usage Declines as Customers Choose Digital Payments

Increasing numbers of individuals are opting for digital payment options, resulting in a decline in ATM usage.

A survey by the research firm Euromonitor International discovered that the number of available banking machines in the United States had decreased by more than 18,000 from 2019, when there were the most of them ever.

The decline is attributed directly to the acceleration of the shift toward digital payment methods during the COVID-19 pandemic.

The Wall Street Journal quotes Kendrick Sands, consumer finance research manager at Euromonitor International, saying, “There was a fear that the virus was communicated through paper, and there’s a tendency of buying everything online.”

The availability of digital payment platforms such as Venmo, Cash App, and Zelle has also contributed to the fall in cash usage. However, the ATM Industry Association reports that cash is still the preferred means of payment for purchases of less than $25.

Large numbers of people still rely on cash, thus, the decline in ATM usage presents its own set of problems. When fewer cash machines become available, access to monies will become increasingly difficult for these populations.