Cash is becoming less relevant by the day as more people opt for digital payment methods resulting in a dip in ATM usage.

A study by research company Euromonitor International found that the number of available banking machines in the U.S. has dropped by more than 18,000 since 2019, a time when there was the highest number of them at any time in history. 

The drop off is being linked directly to the gradual transition towards digital payment options, which accelerated during the COVID-19 pandemic.

"There was that scare that the virus was transmitted by paper, plus the trend of just buying everything online," said Kendrick Sands, consumer finance research manager at Euromonitor International, according to The Wall Street Journal.

The accessibility of digital payment platforms like Venmo, Cash App, and Zelle have also seemingly contributed to the decline in the use of cash. But for making small payments, the ATM Industry Association notes that cash is still the preferred method of payment on items that cost less than $25.

The decrease in ATM usage comes with its own set of issues, as large numbers of people still rely on cash. As fewer cash machines become available, access to funds for those groups will become more difficult.

Share:
More In Business
Tesla’s profit fell in third quarter even as sales rose
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Load More