A recent report by SkyQuest Technology Consulting finds that the demand for ATMs is increasing, even in the face of increased online payment methods. According to SkyQuest, there are currently approximately 3.1 million ATMs around the world, and JPMorgan Chase expects that 2021 global ATM transactions will have amounted to $12.6 trillion.
With ATMs increasing their service capacity with added features, ATMs are becoming more and more of a necessity, especially in rural communities where brick and mortar banks may be scarce.
According to SkyQuest’s press release, “SkyQuest has been closely monitoring the ATM industry and its potential effects on the global economy. The banking sector is the biggest user of ATM technology, accounting for approximately 65% of total ATM transactions worldwide. The global ATM market is divided into two types: in-network (inside banks) and out-of-network (outside banks). In-network machines generated 57% more revenue than out-of-network machines; however, out-of-network machines generated a higher net margin due to higher Merchant Service Fees (MSF).”
Banks Investing in ATMs
The study found that banks are increasingly spending money on ATM technology and infrastructure. SkyQuest also encourages ATM policymakers to “ensure effective technology transfer and financial regulatory reforms” in order to help manage new technologies and investment.
In spite of a trend toward cashless payments, the need for cash around the world is still in high demand. And with better technology and increased services, the future of ATMs appears to be bright.