Germany is going cashless: ATMs are on the decline!

Germany is going cashless: ATMs are on the decline!

The digitalization of payment transactions in Germany is gaining momentum, and this is having noticeable consequences for the ATM landscape. According to a recent report by IT Boltwise The number of ATMs will have fallen by three percent to around 49,750 in 2024. In the previous year there were around 51,300 ATMs listed. This decline is closely linked to the increase in digital payment methods, which are very popular with citizens.

In 2023, 50% of all transactions in Germany will be settled with cash, i.e. banknotes and coins. But as a study by the Deutsche Bundesbank shows, the share of cash payments fell from 58% in 2021 to 51% in 2023. The acceptance of cashless payment methods is growing rapidly: the use of debit cards rose to 27%, and even mobile payments have tripled to 6%. This shows that many consumers prefer to take advantage of digital payment methods, which are valued for their simplicity and speed.

Cash availability is changing

Bank branch closures are another consequence of this development. In 2024, the number of bank branches fell by more than eight percent to 17,870 locations. This makes it increasingly difficult to find an ATM or bank counter. According to the Deutsche Bundesbank, citizens are on average 1.4 kilometers away from an ATM, but 15% of respondents now consider it difficult to reach an ATM - an increase of 6% compared to the previous year.

Despite these challenges, the cash supply in Germany remains secure. According to the Bundesbank About 80.7 million people live in communities with at least one ATM or bank teller. Nevertheless, a survey shows that a majority of respondents want to continue using cash in the future, even if they expect a decline in usage behavior. Almost half of those surveyed see cash almost disappearing within 15 years.

The future looks hybrid

Payment behavior in Germany is at a crossroads, and many citizens are asking themselves the question: What will happen next? 360compact emphasizes that the development of digital payment methods must be viewed on a country and culture-specific basis. Countries like Sweden are already much further along in the use of cashless payment methods, which increases the pressure on Germany to follow suit.

The EU is even planning a cap on cash payments to combat money laundering. Innovative payment methods, such as digital currencies and programmable payments, are under discussion. The Bundesbank is pursuing various development paths for payment methods in Germany until 2037. These range from a complete digitalization of payment transactions to a possible cash renaissance if trust in digital systems wanes.

In this hybrid payment world, it will be crucial to preserve both cash and digital means of payment. Many people still rely on cash, especially the 500,000 citizens in Germany who do not have a checking account. It therefore remains important for retailers and banks to ensure the availability and acceptance of cash.

In summary, the development of payment transactions in Germany is an exciting, albeit challenging, journey. Whether cash will continue to play a role or will be digitized remains to be seen. However, one thing is certain: digitalization can no longer be stopped and citizens will be required to adapt to the new circumstances.