News in Brief

ATM Usage Mixed in 2020

In 2020 the number of ATMs fell slightly according to RBR who are about to publish their ‘Global ATM Market and Forecasts to 2026’ report. In fact, 2020 was a mixed year where the long-term growth in ATM installations slowed rather than stopped. In 2020 51 countries, out of 110 studied, saw ATM growth. Egypt saw the greatest increase, 12%, as the government encouraged the use of ATMs to maintain access to cash and for depositing cash. On the other hand, China closed 50,000 ATMs on its own and many countries saw ATM services reduced awaiting better times and some providers used the pandemic to remove less profitable machines.

The report paints a slightly confusing picture for the future since it suggests growing ATM use in two thirds of countries and suggests ATMs have a role to play replacing functions previously carried out by tellers and to encourage financial inclusion while also saying that between now and 2026 falling cash volumes will cause ATM numbers to fall with China being a big part of this.

EU Plans to Cap Cash

The European Union (EU) keeps looking at limiting cash payments. In 2010 the European Commission said, ‘the impact of a cash restriction on money laundering in general, cannot be precisely quantified. In this context, a declaration obligation would already provide law enforcement with intelligence’ (European Commission Recommendation 2010/191/EU).

In 2018 The European Commission said, ‘While tax fraud and the use of cash are often associated, the study demonstrates that the relationship between the two is not always clear-cut.’ This was after a two year consultation and was a comment on the implications of restricting cash payments.

Now the Financial Services Commissioner, Mairead McGuiness, has given an interview saying the EU will introduce a €10,000 limit on cash payments.

The EU has anti-money laundering and terrorist financing regulations in place for cash payments over €10,000. Businesses and individuals must identify and verify the identity of the person paying, and whether there is a guiding mind behind them. 17 out of the 27 EU member states have cash payment limitations in place, although these vary significantly from €500 in Greece to €14,000 in Poland. One has to wonder whether the 13 countries who already have limits less than €10,000 will now have to increase them.

Global Study Suggests Cash Transaction Decline

The FIS 2021 Global Payment Report issued by Worldpay has created startling headlines that cash will be used in shops in the UK for just 7% of purchases by 2024.

The 2019 UK starting point was 27% and this fell of 13% in 2020 with a drop of 10-20% across all the countries in the study. Mobile payment usage is expected to grow to be a third of point of sale (POS) transactions by 2024.

In fact, the report says that cash transactions fell dramatically worldwide;

• 21.9% in North America

• 33.6% in Europe

• 34.7% in Latin America

• 36.6% in APAC.

It found that at POS cash volumes are now 5.4% in Canada, 4.5% in Norway, 11.9% in the U.S. and less than 10% in markets as diverse as Australia, Hong Kong and Sweden.

At the end of the report are details of the methodology, ‘This report asserts our view of the market, based on internal expertise, our own research and third-party vendor data. Our Market Intelligence team compiles The Global Payments Report using data from a mixture of third party vendors as well as public data sources.’ It appears to draw primarily from GlobalData, McKinsey Global Institute/ Oxford Economics macroeconomic assumptions and Statista.

Without greater clarity on the sources, it is hard to assess how much confidence to place in such reports. It does cover 41 countries in detail and it provokes careful thought about the changes going on.

New Software to Combat ATM Crime

The ATM Security Association (ASA) has launched a new worldwide Crisis and Crime Management Intelligence System (CCMIS).

CCMIS is a centralised, searchable database of ATM incidents providing crime trends, methods of attack, crime migration patterns and information on emerging forms of attack. It has been designed to be fully searchable, including a graphics package. The system includes a theoretical risk register to allow subscribers to the system to see potential and emerging threats.

The CCMIS is operated by ASA and the ATM Industry Association (ATMIA).

Bangladesh Invests in Cash Recycling Machines

Bangladesh’s Daily Star newspaper has carried a detailed report about the adoption of cash recycling machines in the country. According to Bangladesh Bank, since June 2020, 550 cash recycling machines have been installed in Bangladesh. Prior to that only 272 had been installed in the four years up until then.

Transactions have increased dramatically, with the March value nine times more than a year earlier. The recirculation of notes is highly valued by banks since it reduces the dependence of merchants on bank branches. But it does require considerably more note counting than with purely ATM issue of new notes.

This rate of increase seems set to continue, with the Islami Bank Bangladesh reported to be planning to double the 400 machines it has now in the next year. Southeast Bank is buying 385 machines to add to its existing 185. Southeast Bank is replacing its 100 ATMs with these cash recycling machines.

Similarly, City Bank has said that it will gradually replace its 350 ATMs with recyclers. It has plans to instal 150 this year and a further 100 next year. It will use QR codes to allow customers to withdraw cash.

The central bank supports this change and is working to ensure the technology is interoperable between banks. It wants people to be able to deposit money to any bank account on a real-time basis. An advantage for retailers is that their funds are safe in their accounts at the end of the day.

Currently, there are 12,225 ATMs in Bangladesh.

OneBanks Working with G4S

OneBanks continues to develop its manned shared bank kiosks by working with G4S to use its Cash 360 intelligent safe for the payment of bills using cash.

The current trial site is designed for use in relatively large, high footfall locations such as supermarkets and train stations. It is now looking at smaller locations such as convenience shops. It is planning three further trial sites later this year.

G4S Cash Solutions in the UK reports strong demand for cash returning, with a 70% increase in demand for its services in the last few months, OneBanks being one of those customers!