Is this the end of the ATM era? Are we facing the loss of access to quick cash withdrawals?
The decline in the number of ATMs in Poland: causes and effectsIn recent years, there has been a noticeable decline in the number of ATMs in Poland. At the end of March 2024, there were 20,869 in operation, which is a clear decrease compared to 22,085 at the end of the previous year. The National Bank of Poland explains this by a change in the methodology of data collection, eliminating double reporting, but is that really the case? In reality, the problem lies deeper – in the profitability of maintaining these devices, which are becoming less and less profitable with rising costs. Additionally, our payment habits are changing. More and more people are opting for cashless transactions, which affects the demand for traditional ATMs.The liquidation of Euronet ATMs: Consequences and ProtestsIt should not be forgotten that operators such as Euronet are facing huge financial challenges. In 2024, Euronet announced that it would close as many as 330 ATMs. The reason? Rising maintenance costs of these machines and decreasing income from cash transactions. And it was in the summer of 2024, in July and August, that a strike occurred – Euronet then limited the maximum withdrawal amount from the ATM to 200 PLN to draw attention to its problems. The strike sparked a wide social response, especially among the elderly, residents of smaller towns, and people with disabilities. Many of them felt the direct effects of these restrictions, as access to cash is crucial for them. The Commissioner for Human Rights also spoke out, pointing to financial exclusion that may affect these groups. This exclusion from access to basic banking services can have serious social and financial consequences. Moreover, as I mentioned earlier, I referred to these Euronet strikes during July and August.The Causes of the Decline in Cash UsageIt cannot be denied that cash is losing popularity. Why? Primarily due to the development of cashless payments. We are increasingly reaching for payment cards, mobile applications, and systems such as BLIK, Apple Pay, or Google Pay. The COVID-19 pandemic only accelerated this trend. Avoiding cash for hygiene reasons, as well as the convenience and safety of cashless transactions, has led to us using ATMs less frequently.Consequences of the Decline in Cash UsageDecreased interest in cash has its consequences. The first visible effect is the decreasing number of ATMs. Their maintenance costs are rising, while the demand for cash withdrawals is falling. This problem particularly affects the elderly and those living in small towns. For them, the lack of an ATM nearby means not only difficulties in daily functioning but also the threat of financial exclusion. On the other hand, banks and financial institutions are trying to keep up with trends by investing in technologies enabling cashless payments.Statistics on the number of banknotes in circulationHowever, the value of cash in circulation is not decreasing at all. Over the past 12 years, the value of cash in Poland has tripled. High-denomination banknotes, such as 500 PLN, are gaining popularity. In 2017, there were a million of them, and by 2019, this number had risen to 16 million. Despite the decreasing number of ATMs, cash still plays an important role in the economy. Interestingly, the number of counterfeit banknotes is decreasing, which indicates an improvement in security measures.The paradox of cash: more banknotes, fewer ATMs – where's the logic?And now let's consider – since the number of banknotes in circulation is increasing, shouldn't the number of ATMs also remain at a similar level? It is natural that maintenance costs rise with inflation, but shouldn't we ensure a sufficient number of ATMs since cash is still so needed?
The decline in the number of ATMs in Poland: causes and effectsIn recent years, there has been a noticeable decline in the number of ATMs in Poland. At the end of March 2024, there were 20,869 in operation, which is a clear decrease compared to 22,085 at the end of the previous year. The National Bank of Poland explains this by a change in the methodology of data collection, eliminating double reporting, but is that really the case? In reality, the problem lies deeper – in the profitability of maintaining these devices, which are becoming less and less profitable with rising costs. Additionally, our payment habits are changing. More and more people are opting for cashless transactions, which affects the demand for traditional ATMs.The liquidation of Euronet ATMs: Consequences and ProtestsIt should not be forgotten that operators such as Euronet are facing huge financial challenges. In 2024, Euronet announced that it would close as many as 330 ATMs. The reason? Rising maintenance costs of these machines and decreasing income from cash transactions. And it was in the summer of 2024, in July and August, that a strike occurred – Euronet then limited the maximum withdrawal amount from the ATM to 200 PLN to draw attention to its problems. The strike sparked a wide social response, especially among the elderly, residents of smaller towns, and people with disabilities. Many of them felt the direct effects of these restrictions, as access to cash is crucial for them. The Commissioner for Human Rights also spoke out, pointing to financial exclusion that may affect these groups. This exclusion from access to basic banking services can have serious social and financial consequences. Moreover, as I mentioned earlier, I referred to these Euronet strikes during July and August.The Causes of the Decline in Cash UsageIt cannot be denied that cash is losing popularity. Why? Primarily due to the development of cashless payments. We are increasingly reaching for payment cards, mobile applications, and systems such as BLIK, Apple Pay, or Google Pay. The COVID-19 pandemic only accelerated this trend. Avoiding cash for hygiene reasons, as well as the convenience and safety of cashless transactions, has led to us using ATMs less frequently.Consequences of the Decline in Cash UsageDecreased interest in cash has its consequences. The first visible effect is the decreasing number of ATMs. Their maintenance costs are rising, while the demand for cash withdrawals is falling. This problem particularly affects the elderly and those living in small towns. For them, the lack of an ATM nearby means not only difficulties in daily functioning but also the threat of financial exclusion. On the other hand, banks and financial institutions are trying to keep up with trends by investing in technologies enabling cashless payments.Statistics on the number of banknotes in circulationHowever, the value of cash in circulation is not decreasing at all. Over the past 12 years, the value of cash in Poland has tripled. High-denomination banknotes, such as 500 PLN, are gaining popularity. In 2017, there were a million of them, and by 2019, this number had risen to 16 million. Despite the decreasing number of ATMs, cash still plays an important role in the economy. Interestingly, the number of counterfeit banknotes is decreasing, which indicates an improvement in security measures.The paradox of cash: more banknotes, fewer ATMs – where's the logic?And now let's consider – since the number of banknotes in circulation is increasing, shouldn't the number of ATMs also remain at a similar level? It is natural that maintenance costs rise with inflation, but shouldn't we ensure a sufficient number of ATMs since cash is still so needed?
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