NEW YORK–The number of ATMs in the U.S.—once a ubiquitous presence in the country—continues to shrink as fewer and fewer people use cash.
After peaking at 470,000 ATMs in the U.S. in 2019, the number of machines has declined annually over the past few years to 451,500 at the end of 2022, according to data tracked by research firm Euromonitor International and cited by the Wall Street Journal.
The reason? As Kendrick Sands a consumer finance research manager for London-based Euromonitor told the Journal, many people quit using cash during the pandemic and haven’t gone back.
“There was that scare that the virus was transmitted by paper, plus the trend of just buying everything online,” said Sands, who is based in Chicago. “That dealt almost a death blow to cash, especially for younger people.”
Euromonitor is forecasting that cash and checks will fall to 14% of total payments this year from 42% in 2010.
More Digital Transfers
The Journal report further noted that more people are opting to send money digitally for money needs such as allowances, tips and splitting bills via payment apps like PayPal, Venmo and Cash App.
“That kind of behavior is likely to persist, according to a Federal Reserve study on payments during the pandemics,” the Journal reported. “The study documented a 12.4% jump in digital transactions between individuals from the first quarter of 2020 to the second. People making those transactions for the first time jumped 18% over the same period.”
Hold On a Minute
However, a spokesperson for the American Bankers Association told the Journal ATMs remain key to the banking system, and officials from the ATM Industry Association questioned the Euromonitor numbers, telling the Journal that while the dispensers were hit hard during the pandemic they see a rebound in demand for cash.
“It is still the payment method of choice for in-person transactions of $25 or less,” said David Tente, the group’s executive director for the U.S. and Latin America.
As the report also noted, ATMs are evolving into video-enabled ITMs, which are replacing branches for many institutions, including credit unions.
Brian Riley, director of credit advisory services at Javelin Strategy & Research, told the Journal, “The ATM definitely is not dying. They do allow financial institutions to displace some employees.”
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