Despite the rapid growth of digital wallets, mobile payments, and peer-to-peer payment apps, ATMs continue to play a central role in the U.S. banking ecosystem. Research from Mercator Advisory Group shows that consumers still rely heavily on cash access, even as technology evolves to include cardless transactions, NFC authentication, QR codes, and enhanced mobile integration. At the same time, rising surcharge fees, replacement-driven deployments, and shifting ownership models are reshaping how financial institutions and independent operators manage networks in an increasingly digital payments environment.
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Data for today’s episode is provided by Mercator Advisory Group’s report – 2019 ATM Benchmark Market Report.
5 ATM trends that look set to continue:
- There are approxomately 470,000 ATMs in the U.S.
- The U.S. has approximately 144 ATMs per 100K people – compared to 42 per 100K people worldwide
- The cost of an ATM withdrawl averages $4.72 in the U.S., and will continue to rise
- 77% of consumers report that they will “do anything” to avoid paying a surcharge fee
- 36% of consumers report they’ve never paid a surcharge fee
- Cardless ATMs are on the rise using NFC, passcodes, and QR technologies
- ATM supplier NCR notes that 90% of ATM orders have been for replacement machines – not new locations
About this report
Despite continued pressure from digital payment products, particularly person-to-person (P2P) applications like Zelle and Venmo that are used to pay back other individuals or to send a gift electronically, ATMs remain a fixture in the banking market. On the horizon is the growing threat of contactless cards, predicted to grow rapidly in the next two years, replacing small dollar purchases at the point-of-sale. A new research report from Mercator Advisory Group titled 2019 ATM Benchmark Market Report explores consumers’ trends in ATM use and other market developments.
“It may surprise some readers how strong the use of ATMs for cash withdrawals and other transactions activities continues to be in the face of digital payments. Consumer data supports the finding that individuals who have adopted newer payment technologies still rely on cash and ATMs for their day-to-day transactions. Despite the importance of ATMs, many financial institutions are handing over the operation of their ATM fleets to third parties to achieve reduced and more predictable maintenance expenses. As management and sometimes ownership of ATMs changes hands, the independent operators will be setting the tone and industry direction for ATMs,” comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and author of the report.
This research report has 16 pages and 8 exhibits.
Companies mentioned in this report include: Avidia Bank, Bank of America, BMO Harris Bank, Cardtronics, Chase Bank, Fifth Third Bank, GasBuddy, McDonald’s, Payment Alliance International, PNC Bank, Salem Five Bank, and Wells Fargo Bank.
