In decline?
A new report from the Payments Council has predicted that the amount of cash withdrawn from ATM machines is set to drop over the next decade. Although there are over 60,000 ATM machines throughout the UK, patterns show that consumers are becoming more comfortable with using debit and credit cards instead of cash leading to a drop in withdrawals. Additionally, more retailers are accepting cards and enforcing contactless technology resulting in a drop of minimum spend charges and allowing consumers to shop without loose change.
Figures predicted that on average, consumers would withdraw around GBP4178 over the course of a year in 2021, compared to GBP4501 in 2011. Although this does not seem a significant drop when it is compared to the acceleration of debit and credit cards, it is a huge decline. If cash had kept pace with consumer spending, consumers would have withdrawn an extra GBP1090 in 2011 and another GBP2018, totalling GBP7,609 in 2021.
The drop of cash withdrawals is also said to be due to the rise of automated payments, such as Direct Debit. A representative from SmartDebit commented, “The UK is moving to a cashless society and the statistics released by the Payments Council prove this. Consumers are embracing the age of electronic payments and with mobile payments set to be dominant over the next decade. Businesses must ensure they are able to accept new and innovative payment methods as and when they reach the market.”
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