Back in September, PaymentEye examined the state of ATMs and whether they would have a future when the likes of mobile payments and contactless cards are doing their best to eliminate the presence of – or at the very least eliminate the idea of using – cash.
The conclusion was that if ATMs found a way to stay relevant to the public, i.e. adopting newer technologies such as Bitcoin and biometrics, offering more complex services such as financial management, or even working with its purported rivals by offering mobile-based withdrawals, then there would be no reason for them to become extinct.
Now it appears that the ATM industry has fully embraced the strategy of evolution, which will be precisely the reason for why the global ATM market is expected to reach $24.92 billion by 2022, according to a new study by Grand View Research, Inc.
Rising demand for automated wireless communication devices along with growing security standards are estimated to drive the industry. The company also said that the rise of mobile transactions should be utilised to work with ATMs.
“Automation of the basic financial transactions and technological advancements increasing at alarming rate would increase mobile transactions among the customers. Linkage of ATMs with wireless devices would facilitate the customers to complete the transactions securely,” the company said in a post.
“Rising competition amongst the banks to increase the penetration, would lead to its huge installation base, thus offering lucrative growth opportunities for the industry. In order to reduce the frauds, manufacturers and financial institutions are opting for anti-skimming, biometric devices, and voice recognition systems.”
ATM managed services market is predicted to grow considerably, increasing at a CAGR of over 11.0 per cent from 2015 to 2022. It contributes significantly towards strengthening the infrastructure for multichannel delivery for better customer retention, acquisition and cross selling opportunities.
Despite dominating the share of the market in 2014 in terms of revenue, North America is expected to significantly lose that share by 2022. However, adoption of smart machines across countries such as U.S. is estimated to impel growth across this region. Increasing trend of trading in digital currency is driving demand for Bitcoin ATMs across the region.
The Asia Pacific ATM market is expected to grow at a substantial growth rate of over 12 per cent from 2015 to 2022. The rising demand for self-service machines and continuously growing customer base across regions such as China and India are estimated to drive the regional demand over the next seven years. Furthermore, the popular trend of financial institutions outsourcing their related activities is projected to positively impact growth across this region.
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