CEPS Project

The future of the ATM market in a digitalising society


ATMs constitute a critical component in today’s infrastructure for facilitating cash payments. However, ongoing digitalisation (cashless payments, e-commerce and online banking) is challenging the role of ATMs and putting pressure on the cash infrastructure in the EU. The shift from cash to cashless payments reduces the need for cash withdrawals and the rise of online banking challenges the bank branch as the traditionally most prevalent location for ATMs. Moreover, the introduction of pricing policies might also change the dynamics in EU ATM markets. Transparency and price caps on the so-called dynamic currency conversion (DCC) as well as potential reductions in interchange fees will put pressure on the revenues of certain ATMs.
Against this background, this report assesses the sensitivity of EU ATM markets to ongoing digitalisation and pricing policies. The impact of these developments is assessed across business models in eight Member States, which are representative of the ATM markets in all EU member states.

Roberto Musmeci

Zachary Kilhoffer

Willem Pieter De Groen

Associate Senior Research Fellow