ATM transactions drop by more than a third

 

These past few years have seen an increase in the number of alternative payment methods such as contactless cards. As such, the number of ATM transactions has decreased on average around 10% year-on-year. This got worse during the first national lockdown. This period saw operations fall by 68%.

Indeed, the coronavirus has had a huge impact on ATM use. In 2019, £116bn was withdrawn from cash machines. In 2021, this number fell by 30% to reach £81bn. Additionally, consumers visited these machines less frequently. Overall, each adult withdrew around £660 less last year. What prompted this change in behaviour? One of the reasons behind this decrease could be the temporary closure of the Automated-Teller Machines for social distancing purposes. Moreover, these are no longer operating in places such as cinemas and pubs. They are also closed due to government restrictions.

According to John Howells, the CEO of LINK, “The sharp decline in ATM use brings significant problems. Cash machines are by far the most popular way of accessing cash, yet a 37% year-on-year drop in transactions places enormous strain on the cash infrastructure”. Millions of people still rely on fiduciary money and they are unable to use digital services. Nonetheless, the government is introducing new projects for these individuals.


Fewer people are using ATMs © Royalty-free image

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