Not that long ago, ATMs were on the rise. Banks that were looking to cut costs would close a physical branch location and simply provide an ATM. So, from 2015 to 2019, the number of ATMs in the U.S. shot up from 434,000 to 470,000, an 8% increase, according to data emailed to Payments Dive from Euromonitor. 

But after 2019, the number of ATMs has been steadily sliding, and fell below 2018 levels last year. 

In 2020, the COVID-19 pandemic forced people to stay home. Early fears of transmitting the virus through handing out bills and coins seem to have had a lasting effect. Most consumers (93%) don’t expect to stop using cash in the future, according to the latest findings from the Federal Reserve’s Diary of Consumer Payment Choice, published in May.

While there has been a market move by some businesses toward cashless, certain cities and states have pushed back against that trend with legal requirements that merchants accept tender. In addition, legislation has been introduced at the federal level in Congress to protect cash.

“We’ve really seen an aggressive decline in the use cases for cash,” Sands said. He said he expects that slide to continue, projecting cash and checks will be used for just 10% of transactions by 2027.

By James Pothen on June 23, 2023
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