The use of cash is one of the main concerns of the ATM industry. For years, several payment gurus have been declaring the death of cash. While that has not happened, there have been changes in cash usage. Federal Reserve statistics revealed a massive drop in cash use in 2020, but since then cash use has remained largely stable, pointing to the possibility of a cash floor.

But where is cash headed in 2025, what about ATM use and recyclers? To find out more on this topic, ATM Marketplace spoke to Jodi Neiding, vice president, Americas Banking Portfolio, at Diebold Nixdorf.

Q: How has cash usage among consumers compared to 2023?

Neiding: We have observed significant changes in cash usage compared to 2023. While cash remains an integral part of the banking landscape, especially for specific markets and demographics, we are aware of the current trend towards digital transactions. Specifically, we are witnessing a major shift in that consumers are increasingly opting to use mobile wallets, credit and debit cards and other electronic payment methods. This shift is driven by the convenience and growing acceptance of contactless payments, particularly among younger consumers. However, cash and ATMs continue to play a central role in our global banking ecosystem. Physical cash provides essential access to money for those who prefer it, including adults and people in underserved and cash-dependent communities. According to FRB, in 2024, cash will be used for 16% of payments, making it the third most used payment method after credit and debit cards, similarly aligning with the statistics we have seen in 2023. At Diebold Nixdorf, we continue to revolutionise the market with our technology offerings to integrate with next-generation digital models, ensuring that every customer has a seamless experience. As we move forward, we are focused on enhancing the user experience, developing physical and digital security features and expanding our ATM capabilities to meet the diverse needs of consumers.

Q: In recent years, we have seen a trend where customers are making fewer trips to the ATM, but withdrawing larger amounts. Is this still the case? Why or why not?

Neiding: We continue to see this trend, as many consumers still rely on cash. Inflation is driving higher withdrawal amounts. With the rising cost of living, consumers have become more dependent on cash to stay within their budget. But the price of goods and services has increased, so customers need more cash for exactly the same purchases. In addition, some consumers go to the ATM less frequently, but withdraw larger amounts to cover the longer time until their next visit.

Q: What are the most prominent areas where cash usage is strong?

Neiding: In regions with limited banking infrastructure, cash remains the primary method of payment for residents who may lack access to digital banking. Older generations of consumers often prefer cash for everyday purchases, valuing even more the tangibility and ease of use of cash. Globally, and especially in the US, we are witnessing a growing trend of banking deserts, which encapsulates a census tract without a physical bank branch within a certain radius of its population centre, further promoting limited access to financial services for customers. While the trend is towards closing traditional bank branches, we are also seeing the continued adoption of alternative forms of cash withdrawal media, including video teller machines (VTMs), ATMs and more, all promoted by optimised technology such as cash recyclers. Looking ahead, and especially with the rise of global financial institutions reimagining the future of bank branches, we predict that this change will ultimately promote cash withdrawals.

Q: What role do you see cash playing in 2025?

Neiding: In 2025, cash is likely to maintain an important role, and will evolve within the banking landscape and the broader financial services space. Cash will remain essential for those who do not have access to digital banking or who prefer it to control spending. In times of economic uncertainty or system outages, cash serves as a reliable resource, reinforcing its importance as a stable payment method. Specific sectors, such as small businesses or community markets, will continue to rely on cash transactions, making it a vital commodity for day-to-day operations. In some regions, especially within the growing trend of ‘banking deserts’, cash will continue to be favoured due to cultural habits or trust issues with digital systems. As non-traditional means of banking continue to grow, we still predict that cash will serve as a trusted mode of payment for all consumers worldwide, even as physical and digital channels continue to merge.

Q: What will happen to cash recyclers in 2025 and will we see new features?

Neiding: Cash recycling has become an integral part of the banking ecosystem in many areas of the world where access to cash is vital to financial inclusion efforts. Specifically in the US, automated cash recycling is proving to be an attractive solution that provides substantial benefits to financial institutions. Looking ahead to 2025 and beyond, we seek to further optimise and expand our cash recycling offerings, including improving cash management costs for our customers and promoting optimisation, all while continuing to meet evolving security requirements and overcoming the risk factors our customers continue to face. Overall, cash recycling offerings show no signs of slowing down. Technology is a great opportunity for all financial institutions to not only automate cash deposit transactions, but also simultaneously help reduce costs, maximise efficiency and enhance the customer experience through optimised self-service offerings.

Q: Anything else to add?

Neiding: It's no secret that the role of branches and ATMs is changing, and global banks are looking for differentiated touch points to meet unique consumer demands while reducing costs. Looking ahead to 2025, we are more focused than ever on leveraging our hardware, software and services solutions to further advance financial inclusion around the world, so consumers can transact when, where and how they want to.

Source: ATM marketplace