05 Oct 2018

The Future of EU ATM Markets

Willem Pieter De Groen / Zachary Kilhoffer / Roberto Musmeci

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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 Belgium, France, Germany, Greece, Poland, Portugal, Spain and Sweden, which are representative of the ATM markets in all EU member states.

This report is the result of a six-month research project designed by the Financial Markets and Institutions unit of CEPS and led by Willem Pieter de Groen. The research team is further composed of CEPS Researchers Zachary Kilhoffer and Roberto Musmeci.