More Scots going cash-free as ATM usage plummets across the country

Cash was once the go-to option for Scots looking to pay for everything from a parking ticket to a night out on the town.

Now the digital revolution and the move towards a ‘cashless society’ is not only driving the decline of bank branches, it is also reducing the need for customers to queue up to use an ATM.

The volume of cash withdrawals from ATMs has fallen year-on-year across the UK’s nations and regions in early 2019 compared to the same period last year, according to cash machine network Link.

The amount of withdrawals has dropped by 5.4 per cent in Scotland, but the move away from taking out cash has been more stark in London where the volume of transactions has dropped by 8.7 per cent.

The number of transactions at ATMs is declining year-on-year in Scotland. Picture: Phil Wilkinson

John Howells, chief executive at Link, said: “What is clear is that the sharp drop in cash usage means that it is vital now to reform how cash is distributed to maintain broad, free access for all consumers.

“Link is determined to deliver this with the support of industry and regulators.”

There has also been a decline in balance inquiries made using ATMs in recent years, as many people now use banking apps to check how much money is in their accounts. Balance inquiries have fallen by 18 per cent from 2016 to this year, Link said.

Total Link transactions for the first four months of 2019 were 8 per cent lower than in the same period in 2018.

The declining rate of transactions appears to be accelerating and the reduction in Link transactions is expected to be as high as 10 per cent for 2019 as a whole when compared with 2018. But Link said the value of money being withdrawn was declining more slowly, possibly showing when people are using ATMs they are taking more money out as they may not visit them again for a while.

Concerns have been raised about the continued availability of free access to cash amid ATM and bank branch closures.

Recent figures from UK Finance showed around 1.9 million people used cash for their day-to-day transactions last year, but 5.4 million people used cash rarely or not at all. The number of cash payments peaked in 2000 when there were over 27 billion, accounting for 74% of all payments. By 2018, there were only 11 billion cash payments, 28% of the total.

Link’s report said that after previous large falls, this year has seen the number of pay-to-use ATMs start to increase - although numbers are still only at similar levels to a year ago.

Ten years ago, there were 39,991 free-to-use machines and 23,111 charging machines.

In April 2019, there were 49,502 free-to-use machines and 13,147 charging machines.

Link said it must be expected that at some point the decline of cash usage would slow.

Gareth Shaw, head of money at consumer group Which?, said: “While digital payments are rising, almost two million people still rely on cash on a daily basis and it is also an important back-up when digital systems fail. It’s vital that people continue to have free and easy access to cash.”