Increasing demand for cash boosts global ATM market

Despite prophecies about the imminent death of cash, the number of ATMs installed around the world is set to grow by more than 40% between 2012 and 2018, claims consulting firm RBR.

  15 1 comment

Increasing demand for cash boosts global ATM market

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

There will be 3.7 million cash machines installed globally in 2018, predicts RBR, up from 2.6 million in 2012.

The rise will be driven by Asia Pacific and the Middle East and Africa, which will both see increases of over 75% in their installed bases. RBR is also forecasting strong growth in central and eastern Europe and Latin America.

China - where banks issue a million new cards every working day - is singled out by the report as the key country driving growth.

In contrast, growth will be subdued in mature markets such as North American ad Western Europe, where banks are focussing on improving the functionality of their machines rather than increasing numbers. RBR also blames the ongoing effects of the financial crisis for sluggish increases.

RBR argues that ATM numbers are rising rapidly because people still have a strong attachment to cash despite the rise of card payments and new digital options such as mobile money.

Overall, global cash withdrawal volumes are predicted to increase by even more than the number of ATMs - 65% over the forecast period, so as well as expanding their fleets, providers will also be able to increase the profitability of their existing machines.

Sponsored [New Impact Study] Catering to a new generation though unified card programmes

Comments: (1)

A Finextra member 

I'm not actually surprised by this. Even in areas of London, consumers are actively encouraged to use cash over cards. Most small resturantes and take away's now provide 10-15% discounts if you pay with cash, which means I often witness people ordering food, walking 5 mins down the road to with draw the cash to then come back and pay....This is all down to the simple fact that cards are expensive for small businesses....

 

[Webinar] Beyond Open Banking – Exploring the Move to Open FinanceFinextra Promoted[Webinar] Beyond Open Banking – Exploring the Move to Open Finance