The long-term view of the ATM sector isn’t encouraging. Digitization is overpowering the ATM transactions.
Have worked for 2 major non-listed ecom players and seen a growing trend → “newer generations (<20) in T1 cities do not know how to withdraw money and have only used UPI in their life. They do not prefer a cash transaction and would even switch platforms if UPI was down instead of going for COD”.
This doesn’t mean that ATM business will die. It will be there in the future.
However, the growth rate could be slow/stagnant and majorly in places where the internet doesn’t reach.
Here’s an excerpt from old article I found on the internet
Demonetisation has been a turning point for ATM growth in India. From more than 8-10 per cent growth year on year in the number of ATMs prior to 2016, the growth has slowed down to 2-3 per cent per annum. But the country still needs a lot more ATMs. As compared to the world average of 50 ATMs per one lakh population, India is way below, at an average of 28 ATMs per one lakh population, even much lower than China, which is at 98 ATMs per one lakh population and Brazil, which is at 105 ATMs per one lakh population.
I do not agree that India’s digitization can be compared with China/Brazil and we will ever need to reach those numbers.
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