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Mercator Advisory Group Study Explores Impact Of Digital Solutions On ATM Usage

BOSTON -- ATMs remain a fixture in the U.S. banking market despite continued pressure from digital payment products, according to a new research report from Boston, MA-based Mercator Advisory Group titled 2019 ATM Benchmark Market Report explores consumers' trends in ATM use and other market developments. Among the rapidly growing digital alternatives to cash is person-to-person (P2P) applications like Zelle and Venmo that are used to pay back other individuals or to send a gift electronically. Also on ...

December 9, 2019 by Emily Jed

BOSTON -- ATMs remain a fixture in the U.S. banking market despite continued pressure from digital payment products, according to a new research report from Boston, MA-based Mercator Advisory Group titled 2019 ATM Benchmark Market Report explores consumers' trends in ATM use and other market developments.

Among the rapidly growing digital alternatives to cash is person-to-person (P2P) applications like Zelle and Venmo that are used to pay back other individuals or to send a gift electronically. Also on the horizon is the growing threat of contactless cards, predicted to grow rapidly in the next two years, replacing small dollar purchases at the point-of-sale.

"It may surprise some readers how strong the use of ATMs for cash withdrawals and other transactions activities continues to be in the face of digital payments. Consumer data supports the finding that individuals who have adopted newer payment technologies still rely on cash and ATMs for their day-to-day transactions," commented Sarah Grotta, director, debit and alternative products advisory service at Mercator Advisory Group and author of the report. "Despite the importance of ATMs, many financial institutions are handing over the operation of their ATM fleets to third parties to achieve reduced and more predictable maintenance expenses. As management and sometimes ownership of ATMs changes hands, the independent operators will be setting the tone and industry direction for ATMs."

Highlights of the research report include: market trends regarding consumers' use of cash; the impact of digital solution on cash as well as the usage of ATMs; consumer trends in ATM use; the role of ATM surcharges and the surcharge-free networks; and cardless ATM transactions and other technology updates.

Companies mentioned in the report include: Avidia Bank, Bank of America, BMO Harris Bank, Cardtronics, Chase Bank, Fifth Third Bank, GasBuddy, McDonald's, Payment Alliance International, PNC Bank, Salem Five Bank and Wells Fargo Bank.

For more information, e-mail info@mercatoradvisorygroup.com.