ATMs slipping to scare

 

After the long reign of ATM (Automatic Teller Machine) from decades which worked as a financial innovation for society seems to be slipping its popularity.

The number of ATMs around the world fell for the first time last year as banks closed branches and redirected resources toward digital payments, consulting firm RBR said in a study released on Monday. Declines in four of the world’s five largest markets - China, the U.S., Japan, and Brazil - drove the 1% drop in ATMs in 2018. In the fifth, India, “growth slowed considerably,” London-based RBR said.

Bank customers are increasingly using their mobile phones for regular financial services, and moving away from cash for debit and credit card using the POS facilities.

The number of automated teller machines in India reduced in the past two years despite an increase in transactions, Reserve Bank of India figures showed Saturday. India already has the fewest ATMs per 100,000 people among BRICS nations, according to the International Monetary Fund. This drop has occurred due to ATM operator struggle to update the software and maintain the machines regularly.

In India, the Digital India initiative which included BHIM UPI transactions and Paytm has played a significant role in reducing the cash transactions, an increase of digital payments and on global level PayPal has played a substantial role in cashless transactions.

But after all this we don’t expect this number to reduce more as we know “Cash is King” and still the people at the bottom of pyramid of economy are still not aware or comfortable with the digital payment methods and the developing cities are still not having facilities of accepting digital deposits on every vendor or shops, so there is still hope for ATMs