Data published by Walter.com shows that the value of ATM withdrawals in the UK during Q2, 2020 was £22,086 million. Compared to a similar period last year, the value represents a drop of 46.7% when the number was £41,430 million.
Digital payment occupied the center stage
Overall, before the pandemic, the value of ATM withdrawals have been declining with the growth of digital payment options.
Since 2018, the ATM withdrawals under operator LINK has been declining significantly. In 2018 ATM cash withdrawals stood at £125.37 billion while in 2019, the number dropped by 7.14%. By October the ATM withdrawals stood at £67.9 billion.
The data shows that in the wake of the coronavirus pandemic, digital payment occupied the center stage. During Q2 2020, PayPal’s payment volume amounted to $221.7billion, a 29% year on year growth. PayPal’s subsidiary Venmo payment volume was $37 billion translating to a 52% year-on-year growth.
Elsewhere, during Q1 2020, payment facilitator Ayden processed volumes of €129.1 billion, a growth of 23% year-on-year. Zelle processed volumes of U$133 billion, which represents a growth of 21% compared to the previous two quarters.
The research by Walter.com explained the rise in digital payments amid dwindling ATM withdrawals values. The research report notes that:
„Digital payments, e-commerce and on-demand economy platforms are the big winners of the pandemic. As an alternative to public transport, eating out, fetching groceries, going to the office and living in crowded cities, those who could, opted for apps that offer ride-hailing, food delivery, ordering groceries online, freelancing and finding a short-term rental on a lodging platform. Behind the scenes of all these e-commerce platforms are digital payments platforms that are being rapidly adopted by the late majority and even laggards.”
Not only has the value and volume of ATM cash withdrawals fallen in 2020, but the trend of decommissioning ATM units has also accelerated. According to the European Association for Secure Transactions(EAST), the number of ATMs in Europe fell by 11,461 in the first half of 2020.[3] Not even a pandemic could stop the removal of cash machines.
[3] https://www.association-secure-transactions.eu/industry-information/atm-numbers-europe/
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
