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Data for today’s episode is provided by Mercator Advisory Group’s report – 2019 ATM Benchmark Market Report.
Banks are counting on contactless cards to supplant cash in small dollar purchases:
- Despite the increased costs of issuing contactless cards, banks were on board in 2019
- Banks bet that consumers will find waving their card more convenient than cash
- Following the introduction of contactless cards in the U.K., cash transactions declined 16% from 2016-2017
- The impact will not be as dramatic in the U.S., where the rate of change and acceptence will be slower
- Currently, 59% of U.S. consumers visit the ATM monthly for cash
- 26% of U.S. consumers visit ATMs exclusively for cash withdrawal
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.