Are ATM cash withdrawals making a comeback?

About 2 in 3 markets studied saw ATM withdrawals rise as inflation squeezes on income.

The total number of cash withdrawals in ATMs worldwide are making a comeback in 41 markets worldwide, according to data from research and consulting firm RBR Data Services.

Whilst 2 in 3 markets saw a rise in withdrawals, overall ATM withdrawals in the 63 markets studied reported declines, RBR Data Services noted, suggesting that the decline in the remaining 22 markets was enough to bring overall cash withdrawal data down.

The rise in withdrawals in the 41 markets may be due to rising cost of living and cash being seen as “the most reliably accepted payment method,” the study noted.

Double-digit growth rates were seen in markets as varied as Ecuador and Turkey. In Ecuador, cash is noted to still be the most reliably accepted payment method, and financial inclusion measures are bringing greater numbers of people into the banking system.

In Turkey, meanwhile, the rise in cash withdrawals may be due to lifting of lockdown restrictions and the rising cost of living, as some consumer segments turn more to cash when feeling the squeeze of inflation, the study said.

ALSO READ: South Korean domestic banks’ earnings rose 15% in 2023

“Cash remains an important payment method for millions of people around the world, even in those markets that are furthest along the so-called ‘cashless’ path, and while ATM numbers and usage will continue to decline at a gradual pace, the need for cash and for ATMs is not going away in the foreseeable future,” noted Mandy Eagle, who led RBR Data Services’ Global ATM Intelligence Service research. 

Hong Kong reported the highest average cash withdrawals per ATM per month, at 8,600 transactions. Kenya also has a relatively high average usage, but this may just be due to having lesser ATM machines.

Overall, despite the rise in 41 markets, the number of cash withdrawals at ATMs worldwide is still expected to decrease slowly over the next few years, as alternative payment and banking methods make further inroads. 

ALSO READ: Thailand publishes rules for virtual bank license applications

Nevertheless, average usage levels will rise, as the number of ATMs in operation continues to decrease.