Cash is no longer the dominant payment method it once was, but it remains an essential part of the global financial ecosystem. As digital payments expand rapidly, cash is shifting into a more specialized role: less frequently used, yet highly valued for reliability, accessibility, and trust.

For banks and ATM operators, this evolving landscape means one thing: strategies for cash access need to adapt to new realities, not old assumptions.

Global Cash Usage: Declining but Resilient

Global Cash Usage: Declining but Still Relevant

Several recent reports confirm the downward trend in cash transactions:

• The BIS notes that the share of cash in point-of-sale payments has fallen steadily in advanced economies, replaced by cards and mobile wallets.

• According to the IMF, around half of the world’s population still uses cash intensively in daily life, particularly in emerging markets.

• Worldpay’s Global Payments Report highlights further declines in global cash usage, as contactless and digital options become more common.

The picture is clear: while cash is shrinking as a share of payments, its role as a trusted and inclusive means of value exchange is far from over.

Regional Differences Matter

Cash trends are not uniform. The BIS underlines significant regional variation: in some advanced economies, cash accounts for a small fraction of daily transactions, while in others, it remains a widely used medium of exchange . Emerging markets show particularly strong reliance, with IMF research stressing how uneven access to digital infrastructure keeps cash central for many households.

For ATM networks, this means strategies cannot be one-size-fits-all. Operators need to balance efficiency in markets where cash use is shrinking with availability in regions where it remains indispensable.

The ATM Market Remains Strong

Despite shifts in payment behavior, ATMs are not disappearing. Research shows the global ATM market is expected to continue growing, supported by:

• Demand in cash-reliant regions, particularly in developing economies.

• Technological evolution, with smart ATMs offering services beyond withdrawals, such as bill payments, deposits, and cardless transactions.

ATMs are moving from being purely cash machines to multifunctional service points that extend banking services into communities.

Strategic Implications for Banks and ATM Operators

Banks face a dual challenge: investing in digital while maintaining efficient cash access. Based on the trends in the reports, four priorities stand out:

1. Rationalize ATM networks
   Maintain coverage where cash demand is high, consolidate in areas of low usage.

2. Upgrade functionality
   Introduce features such as mobile integration, deposits, and payments to keep ATMs relevant.

3. Align with digital journeys
   Ensure ATMs fit into broader banking ecosystems rather than operating as stand-alone silos.

4. Plan for resilience
   Cash remains critical in crises. ATMs are part of the financial safety net when digital systems are unavailable.

Conclusion

Cash usage is evolving, not disappearing. For banks and ATM operators, the challenge lies in serving a shrinking but highly dependent group of cash users, while at the same time modernizing ATM networks to support new digital functions.

This requires a partner who can flexibly adapt to both ends of the spectrum: ensuring stability where cash remains central, and enabling innovation where digital is accelerating. At SBS, we specialize in delivering exactly that balance - supporting the full scale of needs, from resilient ATM infrastructure to forward-looking, multifunctional banking services.

Sources:

1. McKinsey – Global Payments in 2024: Simpler Interfaces, Complex Reality

2. IMF – Measurement and Use of Cash by Half the World’s Population

3. Digital Transactions – Cash Use Slips as Digital Payments Grow, Says Worldpay Survey

4. BIS – BIS Payment Statistics Commentary

5. Grand View Research – ATM Market Report