ATMs in 2026: How the Cash Payment Industry is Changing

ATMs remain an integral part of the global financial infrastructure despite the rapid growth of digital payments. In 2026, the industry faced a paradox: the number of installed ATMs is decreasing, but transaction volumes remain stable, especially in emerging markets. This dynamic reveals profound changes in how people interact with cash and financial services in the digital age.

Service Market: Consolidation and Growth

The global managed ATM services market shows steady growth despite a reduction in the number of installations. In 2025, the market was valued at $9.36 billion, reaching $10.19 billion in 2026. Analysts forecast an annual growth rate of 8.9% through 2030, when the market will exceed $14 billion. This paradox is explained by financial institutions shifting to outsourcing ATM operational management models, which reduce costs and increase efficiency.

Global Infrastructure: Contraction at Variable Speeds

The number of active ATMs worldwide has decreased to 2.91 million units—a decline of 1.4–1.8% annually. However, this reduction is unevenly distributed. The Asia-Pacific region remains the leader, maintaining over 1.4 million installations (about 50% of the global fleet). North America experienced a steeper decline of 5%, while Africa and India show opposite trends—deployment growth of 10% and 6%, respectively.

Developed economies are experiencing the most significant reductions: Western Europe saw a 7.5% decrease, and Sweden—becoming a cashless society icon—reduced ATM usage by 82% over the past decade. Conversely, developing economies demonstrate a strong dependence on cash—84% of consumer transactions in these countries are still linked to physical money.

Technological Transformation: From Biometrics to Crypto

ATMs are not disappearing but evolving. Technological innovations are fundamentally changing the capabilities of traditional ATMs. About 16% of all ATMs in 2026 support biometric authentication, including facial recognition and fingerprint scanning. Contactless transactions via NFC increased by 19.4%, reflecting a shift toward hygiene and convenience priorities.

Cryptocurrency ATMs added approximately 10,800 new installations, bringing the total worldwide to 39,800 units. The largest operator, Bitcoin Depot, controls 9,325 devices (23.5% of the crypto ATM market), followed by CoinFlip with 5,693 installations and Athena Bitcoin with 3,967. Crypto ATMs processed over $1.4 billion in transactions, with annual growth exceeding 35%.

Hybrid ATMs integrating cash, digital, and crypto functions accounted for 26.5% of the global market. ATMs supporting mobile cash withdrawals without a physical card reached 30% of all installations (up from 20% a year earlier). Eco-friendly solar-powered units made up 22% of new deployments, expanding access to remote regions.

Regional Usage Contrasts

The global transaction volume through ATMs reached 86.7 billion operations, but the average withdrawal amount increased by 3.3% to $157—indicating users are making larger withdrawals less frequently. ATM visit frequency declined by 11.2%, but 87% of all transactions occur outside traditional banking hours, highlighting the importance of 24/7 access.

In developing countries, the situation is radically different. In India and Brazil, 73% of the population uses ATMs monthly, and over $13.6 trillion was withdrawn via ATM networks in 2026. Latin America saw a 7% increase in transactions, driven by economic instability and a preference for cash in countries like Brazil and Argentina. Middle Eastern countries, including Saudi Arabia and the UAE, experienced an 8% increase in withdrawals.

Digital Competition Pressure

The growth of digital payment systems exerts uneven pressure on traditional ATMs. In large developed economies, usage declined by 5.7% due to the spread of mobile payments. P2P payment apps like Venmo and Zelle reduced ATM visits among Generation Z by 22%. Contactless payments via Apple Pay led to a 10.8% decrease in withdrawals in developed countries. QR code-based payments grew by 19.5% globally, further displacing cash demand in urban centers.

However, the global picture remains mixed. About 30% of all consumer transactions still use cash. In Africa, over 80% of operations remain cash-based, demonstrating uneven digital adoption worldwide. In Germany, despite technological progress, 75% of point-of-sale transactions still involve physical cash.

Security Evolution and Challenges

Global losses from ATM fraud remain a serious issue, though slightly decreased to $1.5 billion. Skimming attacks account for 77% of all fraud incidents despite the gradual adoption of EMV chip technology. Biometric security, deployed in 16% of ATMs, acts as a deterrent against unauthorized access. End-to-end encryption is now present in 68% of new installations, becoming a critical standard for customer data protection.

Modular devices from NCR and Diebold Nixdorf have reduced downtime by 32%, simplifying maintenance and security updates. Video support via ATMs increased by 13.6%, enabling bank staff to provide remote assistance and personalized service.

Global Market Structure

In-branch ATMs dominate, accounting for 43% of the service market. External units in shopping malls, airports, and stores hold 37%. Workplace ATMs make up 13%, while mobile deployments play a modest but important role at 7%.

ATM as a Service (ATMaaS) grew by 16.4%, allowing small financial institutions to access ATMs without capital expenditure on infrastructure. Contactless units reached 42% of all new deployments, aligning with demand for hygienic NFC-based transaction options.

Future Outlook

The ATM industry stands at a crossroads between tradition and innovation. The number of installations may continue to decline in developed countries, but growing markets and technological advancements ensure the sector’s long-term viability. Pilot programs for central bank digital currencies (CBDCs) expanded to 18 countries, accelerating the shift away from physical cash. However, given the deep integration of cash into developing economies and the ongoing role of ATMs in financial inclusion, the sector remains far from obsolescence.

ATMs will continue to transform, becoming multifunctional hubs that connect traditional banking with cryptocurrencies and digital payments. Their future depends not on being displaced by digital systems but on adapting to a hybrid financial landscape where cash, digital payments, and cryptocurrencies coexist within a unified ecosystem.