The global ATM landscape is undergoing significant changes, reflecting shifts in consumer behaviour, technological advancements, and regulatory interventions. In 2023, the total number of ATMs worldwide declined for the third year in a row, but regional variations and emerging trends tell a fascinating story of the different factors at play.
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Digital payments shake up traditional markets
Germany, long known for its cash-centric culture, is finally embracing digital payments. Germany has historically been a “cash-heavy” society, and while it remains so in comparison to the rest of Europe, usage is falling as cashless payments are increasingly preferred. In 2020, the government promoted card payments as an anti-virus measure, and this set the wheels in motion for the change in consumer behaviour. Whilst Germany remains one of Europe’s largest ATM markets, falling cash usage has led to a 3% decline in the number of ATMs.
Similarly, Brazil has seen a 5% reduction in terminals, largely due to the meteoric rise of Pix, its instant payment system. Pix transactions surged by an impressive 75% in 2023, significantly impacting demand for cash and demand for ATMs.
Independent ATM deployers drive growth
Poland’s ATM sector has returned to growth after years of contraction thanks to Independent ATM Deployers (IADs) expanding their fleets. Polish IADs are setting themselves apart by offering advanced features like shared deposits, catering to local communities rather than tourists.
Similarly, in Argentina – the third largest ATM market in Latin America – a nascent IAD sector is expanding strongly, contributing to the overall growth of the country’s ATM market. An increasing banked population as well as continued development of the IAD sector will continue to drive growth in the number of ATMs.
Governments step in to ensure access to cash
Several European countries are taking legislative action to ensure widespread access to cash services. Ireland’s Department of Finance is developing a National Payment Strategy that includes benchmarks for ATM density and accessibility. The goal is to ensure a minimum number of ATMs per 100,000 people and keep cash services within 10 kilometres of every citizen.
Belgium and Hungary are implementing similar measures. The Belgian government is intervening to maintain a minimum number of ATMs nationwide, while Hungary has introduced regulations to boost cash access in rural areas. These initiatives demonstrate a growing recognition of the continued importance of cash in these markets.
Financial inclusion initiatives boost ATM markets across the globe
Ongoing financial inclusion efforts have made Bangladesh one of the fastest-growing ATM markets in Asia, expanding by 11% last year. The government seeks to improve access to financial services in underserved areas through the installation of additional ATMs and the opening of new branches.
Similarly, The State Bank of Pakistan is promoting branchless banking in order to strengthen financial inclusion in remote regions of the country, while Mexico aims to deliver pensions, scholarships and other financial support through ATMs, without commissions.
Uzbekistan presents an even more dramatic picture, with ATM numbers increasing by over 20% in 2023. Since 2019, the country has more than tripled its ATM count, fuelled by government initiatives to increase financial inclusion and a continued reliance on cash.
ATM-as-a-Service (ATMaaS) – an innovative operational model
In the United States, ATM-as-a-Service is gaining traction. Credit unions are increasingly entering into ATMaaS agreements with providers such as NCR Atleos and Diebold Nixdorf. This model allows financial institutions to comprehensively outsource ATM operations, including software development, maintenance, and security, enabling them to focus on core banking services while ensuring efficient ATM functionality.
The ATMaaS trend is not limited to the USA; similar agreements are being implemented in western Europe. For instance, in Belgium, Batopin has partnered with Auriga to manage its entire ATM fleet. This approach could reshape how financial institutions approach ATM management globally.
Conclusion
The global ATM landscape is marked by significant regional variations, reflecting differences in economic development, regulatory environments, and consumer preferences. While some markets are seeing a decline in ATM numbers due to the rise of digital payments, others are experiencing growth driven by financial inclusion and access-to-cash initiatives, and the expansion of independent deployers.
As technology evolves and consumer behaviour shifts, the ATM landscape will continue to adapt and play a key role in shaping the future of cash access and cash usage worldwide.
These are just a few of the trends we explore in depth in our comprehensive Global ATM Intelligence Service. Learn more about the full coverage and deliverables available here.
