Global ATMs On Rise Despite Cashless Payment Trends

Have economic turmoil and the rise of cashless payments led to the decline of ATMs? A new study by banking research and consulting firm RBR says quite the opposite is true.

According to the RBR study, the number of worldwide ATMs increased in 2011 by 7.6 percent, or nearly 170,000 machines. The total number of global ATMs now sits around 2.4 million, and, driven thanks in large part to Asia and the Middle East, is projected to reach 3.5 million by 2017.

Let’s take a look at some of the study’s more interesting numbers in PYMNTS.com’s Data Point. 

Europe Slows But Still Grows

Three major European powers – Germany, the U.K. and Italy – all experienced ATM growth in 2011, but at a slow rate. Despite the worldwide growth, 12 of the world’s 65 largest markets saw a decline, such as was the case with Spain. Spain saw the biggest ATM decline in Europe, which the study links to continuous bank mergers. Despite modest ATM expansion in some of the traditional European powerhouses, Central and Eastern Europe were cited as areas of high growth, thanks in large part to Russia.

China, India Drive Global Increase

The study notes that two-thirds of global growth came from Asia-Pacific, with half of that growth coming directly from China. India and Indonesia combined to add another quarter of all growth in the Asia-Pacific market, which, with 3.8 billion people, holds over half of the world’s entire population. China’s five largest deployers and the State Bank of India were hugely responsible for the ATM influx.

Iran and Nigeria: Big Growth For Different Reasons

The Middle East saw 12.8 percent growth as a whole, with Iran leading the charge. The RBR study indicates this is largely a product of Iran’s cash-based economy, as well as support for electronic banking. How Iran’s currency issues will affect the ATM market headed forward remains to be seen.

Nigeria led Africa’s 9.8 percent growth, and is projected to pass Saudi Arabia as the third-largest market in the region by 2017. But whereas Iran’s growth comes from a cash-based economy, Nigeria’s comes from quite the opposite. The Nigerian government’s cash-less policy has placed limits on ATM withdrawal amounts, leading to an increase in ATM use.

To see more statistics on the global growth of ATMs, read here.