Cardtronics is one of the largest ATM companies in the world. Recently, according to a report filed with the SEC, the company highlighted the shifting trends in payments ecosystem. The company clearly mentioned that more consumers are opting for electronic payments rather than dealing with the notes.
Increase in Electronic Payments:
According to the company, as the usage of electronic payments increase, the demand for cash will decrease. The decreased demand for cash will have a negative impact on their business.
Cardtronics clearly mentioned that the usage of cryptocurrencies like Bitcoin can lead to a reduction in cash transactions. This will also lead to a reduction in demand for the ATM as well. Also, according to the company, the overall number of cash transactions will be coming down due to the use of cryptocurrencies.
The company clearly mentioned that with the help of digital payments, larger transactions will be carried out online. This will lead to a cashless society. The cashless society will bring down the demand for the ATM’s which it operates as well.
Other countries are also trying to go the digital route. Sweden recently announced that it plans to become an entirely cashless economy in the coming few years. Out of the total 1600 bank branches in the country, 900 of them do not accept cash deposits.
Many of the consumers use only mobile applications in order to pay for their daily needs.
Many of the ATM manufacturers, as well as operators all over the world, are witnessing a decline in cash transactions. Hyosung, which is based in Asia is trying to integrate Bitcoin as well as other cryptocurrencies with its ATM. This will, in turn, propel the demand and usage of its ATMs. Unless and until most of the companies do not integrate cryptocurrencies, the demand for ATMs will keep on decreasing.
This is a clear indication that cryptocurrencies are here to stay. It also indicates that more and more users are using cryptocurrency in order to complete their transactions. In the future, as the number of cryptocurrency transactions increase, the cash usage will go down significantly. This will, in turn, hurt many of the companies which rely on the cash-based economy in order to conduct their business.
The ATM operators are just one such business as many other businesses are also dependent on the cash economy.