Atms Soon to Become History

Atms Soon to Become History

As one makes an entry in the Hitachi Payment Services’ boardroom situated in the posh tech hub of Goregaon, the Mumbai suburb, there is a sign lying in a corner. The sign reads “MoneySpot,” the brand name below which it handles the white label cash supplying business in the country. It was used to be a cash spinner, but after spending much time into the industry, almost 700 outlets of “MoneySpot” have disappeared in the last year.

The trade of ATMs (Automated Teller Machines), which was promoted as “Any Time Money” to express its handiness, is witnessing at a catastrophe. Which was once believed to be an important element of the banking segment, is now being transferredout of trend. “A lot of individuals have been speaking of ATMs, but the truth is—as we approach to digital, we are groping ATM payments for the banking network and even for us, we witness it going south,” claims Chief Executive of HDFC Bank, AdityaPuri, to the media in his statement. HDFC turned out to be the most valuable bank by making its usersreach via ATMs in its young days.

The quantity of ATMs, which almost increased 2 x between 2012 (almost 1 Lakh) and 2015, is idlyalmost 2 Lakh and has barely shown any development in the last 6 Months. The number of debit card payments on ATMs has dropped from over 750 Million before demonetization to an average of 660 Million each month.From almost 8 white label operators, which are non-banking organizations installing ATMs, just 3 have put up a practical number of machines combiningalmost 10,000. Those active amongst them are making loss.


The ATM sector, just like any other segment, is encountering its turning point. Paul Volcker, the previous Federal Reserve Chairman, declared ATMs as the only helpful modernization of the economical services segment at the peak of the Global Financial Crisis.These can be at the doorstep of slowly turning out to be history.

In our country, ATMs are not only disputed by technological improvements in smartphones and payments, but also by regulatory problems. It is wrangling between demonetization and banks on how to split the cost. Demonetization indeed altered the pattern. “Users are doing more payments digitally,” claims Executive Director at Axis Bank, Rajiv Anand, to the media in his statement. In short, the rising digital advancement in the country is proving to be a curse for the ATM industry.

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