Study Shows ATM Use Decline as Consumers Opt for Digital Payment Methods

Cash is becoming less relevant by the day as more people opt for digital payment methods resulting in a dip in ATM usage.

A study by research company Euromonitor International found that the number of available banking machines in the U.S. has dropped by more than 18,000 since 2019, a time when there was the highest number of them at any time in history. 

The drop off is being linked directly to the gradual transition towards digital payment options, which accelerated during the COVID-19 pandemic.

"There was that scare that the virus was transmitted by paper, plus the trend of just buying everything online," said Kendrick Sands, consumer finance research manager at Euromonitor International, according to The Wall Street Journal.

The accessibility of digital payment platforms like Venmo, Cash App, and Zelle have also seemingly contributed to the decline in the use of cash. But for making small payments, the ATM Industry Association notes that cash is still the preferred method of payment on items that cost less than $25.

The decrease in ATM usage comes with its own set of issues, as large numbers of people still rely on cash. As fewer cash machines become available, access to funds for those groups will become more difficult.

More In Business

Big Business This Week: Russia Runs Out of Gas and ScarJo Takes on AI

Plus, the Department of Justice takes on the goliath that is Ticketmaster. Are Swifties to thank?

PepsiCo Partners With Children Of Fallen Patriots Foundation

PepsiCo's "Rolling Remembrance" American Flag Relay Puts Veteran Drivers at the Wheel to Raise Funds and Awareness for Children of Fallen Patriots Foundation

Insurance Rates Are Rising – This CEO Says That’s a Good Thing

Fresh off the company’s IPO at the New York Stock Exchange Bowhead Specialty CEO Stephen Sills discusses what’s next and why some insurance rates are rising.

The Best Fashions These Days Are — Surprise! —Sustainable as Well

Fast fashion may be becoming a thing of the past as consumers are increasingly turning toward more sustainable fashion choices — and brands listening.

Summer 2024: AAA Forecasts 44M Travelers, Solo Trips, AI, and Taylor Swift

AAA predicts a surge in summer 2024 travel, with 44 million travelers, surpassing pre-pandemic levels. Expect more solo trips, AI use, and Taylor Swift.

Impossible Wants Meat Eaters to Add Plant-Based Burgers to Their BBQ

As Americans prepare for a long weekend of grilling, Impossible Foods wants to put aside the culture wars, win over meat eaters – and IPO when it's 'ready.'

Nvidia Earnings Shatter Expectations: ‘It’s Not a Chip Stock Anymore’

Nvidia is almost a ‘monopoly’ when it comes to A.I. – but after proving growth in its other businesses, it’s not just a chip stock anymore.

Chill Out, Boomers: Young Consumers Really Have Faced a Tough Economy

Younger consumers are maxing out their credit as they deal with a tough economy, a Bankrate analyst explains.

As Grocery Prices Surge, Thrive Market Emerges as Affordable Solution

In April, grocery prices rose by 1.2 percent, reaching pre-pandemic levels of food inflation. Could an e-commerce grocer be the solution? Thrive Market says yes

Debating Whether to Buy Nike Stock? One Analyst Says Just Do It

Americans spend billions on athleisure every year, and these underperforming brands have room to grow.

Load More