Global ATM Count Drops for the First Time
The latest numbers appear to fall in line with last year's predictions that the number of ATMs in the world would begin to shrink.
The number of ATMs in the world fell by 1% in 2018, largely due to branch closures and rising use of mobile payments, according to new data from banking research and consulting firm RBR. The London, England-based firm predicted that the number of ATMs around the world will fall to 3.22 million in 2024 from 3.24 million in 2018.
ATM counts fell in four of the world’s five largest ATM markets in 2018: China, the United States, Japan and Brazil. In the fifth market, India, ATM counts grew but at a slower pace, the firm said. For these top five markets, RBR said it expected combined ATM counts to fall from 1.72 million in 2018 to 1.62 million in 2024.
“In China, the swift adoption of noncash payments has contributed to a similarly rapid fall in ATM installations. Branch closures have led to fewer bank ATMs in the USA, while [independent ATM deployer] IAD expansion was stifled as some retailers chose to withdraw machines rather than upgrade to EMV standards,” RBR reported.
The Japanese ATM market shrank for the first time since 2009 due to increased ATM sharing among banks, it added. “This is reminiscent of Brazil in recent years, although in 2018, the removal of around 1,200 terminals in Brazil was primarily due to banks reacting to a surge in the use of digital channels,” it said.
Outside of the four largest markets, ATM numbers grew in many countries in 2018, RBR noted.
“Financial inclusion initiatives continue to bolster ATM growth in developing markets across Asia-Pacific, the Middle East and Africa and Latin America,” it said.
RBR’s latest numbers appear to fall in line with its prediction last year that the number of ATMs in the world would shrink over the next few years.
“China is by far the largest ATM market and home to almost a quarter of the world’s ATMs. After years of explosive growth, the ATM sector in the country went abruptly into reverse in 2017, with deployers withdrawing 20,000 ATMs,” it said at the time. “China’s burgeoning middle class has embraced digital payments enthusiastically, and as demand for cash falls, the number of ATMs in the country is expected to continue dropping.”