With all of the attention these days, and particularly following recent global events, on the rise of digital payments and businesses going cashless, you may be wondering what sort of role cash and ATMs will play in the future. Are ATMs still relevant? Will they be in 10 years’ time? As a company that pushes digital payments as the way of the future, we also recognise the very real present and future demands for ATMs and smart ATMs. Here, we consider some of the issues.
There has always been a dichotomy of thoughts surrounding the use of cash, which seems to have been amplified following the pandemic of the last two years. Cash is physical, can be secured and is easier to control. Cash is also unsecure, gives no benefits or rewards and cannot be used online. While the pandemic seems to have fast forwarded many companies and consumers alike to move towards digital (online, mobile, crypto) means of payments, the conflict occurring in Russia and Ukraine has re-emphasised the physical security of having cash as an asset in hand, as evidenced by the long lines seen at ATMS to withdraw money and subsequent limitations on cash withdrawals.
Globally, consumers want options for payments, and they still want cash to be one of those options. While there is an undeniable rise in digital forms of payment, cash is still very much in play. In fact, in some countries there is not necessarily a decline in cash use, but rather a shift in cash withdrawal trends. In the UK in 2020, the number of cash withdrawal transactions decreased, but the amount per transaction increased. And while both Japan and Germany are considered two of the most technologically advanced countries in the world, the physical attributes of cash still make it one of the top payment options*.
ATMs have long been an essential tool of convenience for both financial institutions and independent service operators to provide cash services without the hassle of lining up at an institution to gain access to funds. But with interest in digital payments growing daily, ATM operators must stay ahead of the game and offer more than just convenient access to cash and your typical withdrawal and deposit functions. Value added services will be the key to keeping ATMs fresh and relevant. Bill payments, lending facilities and conversion of cash to digital funds are three rising demands being asked of ATM services, which bridge the gap between traditional and digital. Dynamic Currency Conversion and Foreign Exchange facilities are value-add services which are needed more now than ever with travel rising to pre-pandemic levels. Smart kiosks also offer multiple benefits to consumers with the range of services they can provide and the automation that the operators seek to reduce costs and provide increased customer satisfaction.
Cash recycling ATMs and cash management software are becoming game changers for ATM operators as they reduce human effort and costs in maintaining ATMs as well as delivering visibility and giving insight into consumer cash trends.
The old adage of “the only thing constant is change” is very much applicable to how one looks at cash in today’s world. How it is used, when it is used and how much of it is used may roller coaster up and down, but one thing we are confident about is that it is still here to stay for a good while longer.
Find out more about the ATM services and hardware we can provide you to keep your ATM and cash business relevant and future forward.
*https://www.ncr.com/blogs/banking/cash-trends-digital-world