Future of ATMs in an Increasingly Cashless Payment Ecosystem

By Debasis Mohanty . June 20, 2023 . Blogs

Over the past decade, the popularity of digital banking has reduced the importance of ATMs across the globe. As more banking customers move towards cashless payments, banks are facing serious questions about the future of ATMs. 

Similarly, Daryl Cornell of Triton Systems says, “The ATM ecosystem is no different than any other cyclical industry, where participants ride the growth wave profitably for years or decades before the inevitable peak and subsequent decline.”

2021 Zensar report found that in the aftermath of the COVID-19 pandemic, ATM use reduced by 47% (in April 2020) in India – while the U.K. recorded a fall of 46% every month from March to July 2020. The same trend is true for China, where ATM numbers reduced to just 7.24 (per 10,000 users) in 2020.

So, what is the future of ATMs in an increasingly cashless world? Let’s discuss this.


How Banks Can Reinvent ATMs

In the face of these market challenges, can banks reinvent ATMs to keep them relevant? Among the encouraging trends, ATM manufacturers like Diebold Nixdorf are adding ATM functionalities like cardless transactions and mobile interactions. Banks are also leveraging ATMs to deliver a personalized customer experience in the form of customized quick-cash offers and location-based targeted offers.

Next-generation ATMs would operate like a tablet, where users can easily download banking apps – or operate the ATM with their banking app. Banks can further reinvent ATMs by offering a range of self-serve options to meet their customer’s banking needs. This is the perfect replacement for the long-dying network of traditional bank branches.

While consumers use their mobile phones for digital banking services, transactional services (that require physical presence) can move to ATMs and self-service kiosks.

Despite all this promising talk, banks still face the challenge of managing legacy ATM systems. Banks continue to incur high maintenance costs on their legacy ATM system. Innovative ATM solutions endure a long time to market due to a lack of cloud readiness and efficient APIs. By simply adopting the next-gen cloud-powered ATM solution, banks cannot achieve ATM modernization and reinvention.

Despite modernization challenges, ATMs can reinvent for a relevant future. Next, let’s discuss some of the future trends in ATMs.


Future Trends in ATMs

How can banks keep their ATMs relevant in the age of digital banking and payments? Here are some of the futuristic trends that can augment the capabilities of ATMs:

1. Cardless ATMs

Cardless ATMs are being projected as the “next big trend” in the banking industry. Major banks like Bank of America and Chase are already offering cardless options across their ATMs. The Cardless ATM market size is expected to grow by $2.1 billion between 2022 and 2026. 

According to Wilson Kerr of Unbound Commerce, “As biometric technology drives better and more secure smartphone access measures, innovations like cardless ATMs are going to become the norm.” Among the latest innovations, QR codes in cardless ATMs are growing at an unprecedented pace. These cardless ATMs are much easier to install and less expensive to maintain. 

2. Currency Exchanges

Banks can also enable ATMs to exchange foreign currencies with local currencies at major tourist spots and destinations. Based on a dynamic currency conversion, self-service currency exchanges can save a lot of time and improve convenience. Additionally, ATMs can feature video-based telling services – along with information on the current exchange rate, transaction limits, and fees.

One prime example of using ATMs for currency exchanges is HSBC Bank which supports 4 major foreign currencies, namely the U.S. Dollar, Renminbi, Japanese Yen, and the Euro. 

3. Fingerprint Scanning

Biometric-based fingerprint scanning is another feature that is among the latest trends in ATM technology. Aimed to improve ATM security, this technology enables banks to gradually move away from plastic cards, which are easy to exploit. 

Fingerprint scanning allows ATM users to initiate banking transactions without remembering their ATM PIN. Further, fingerprints are useful in authenticating users and allowing (or disallowing) them access to ATMs. Among the adopters, India-based DCB Bank had previously installed a biometric ATM in the city of Bangalore.

4. Cash Withdrawals Using a Banking Application

Over the past decade, mobile banking apps have become more popular with a host of customer services. Going ahead, banking apps along with ATMs can help users withdraw cash. How does this work? Banking apps provide an access code (valid for around 30 minutes) that customers can use to withdraw cash from ATMs.

Among the successful implementers, ATM company AGS Transact has developed a UPI-based cash withdrawal service. This enables customers to use their banking app to scan a QR code on ATMs and withdraw cash.

5. Video Banking

Banks can also use ATMs to personalize their services based on each customer’s previous transactions and payments. Similarly, driven by customer insights, ATMs can display targeted marketing campaigns to individual customers. 

William Budde of Hyosung Innovue Americas talks about video banking as a “popular enhancement to the ATM channel.” He adds that this technology now supports a “wide variety of transactional services, including bill payments, check cashing, and basic account maintenance.”



In today’s cashless payment ecosystem, traditional ATMs are finding it difficult to remain relevant to banking customers. As highlighted in this article, banks need to modernize and reinvent ATMs to sustain them in the long run. This innovation is much more than a hardware upgrade and entails software innovation.

At Verinite, we have enabled technology-driven innovations in the banking and payments industry. As a technology solution and services company, Verinite is focused on the cards, payments, and lending domain.

Are you looking to make your ATM network more future-ready? Get in touch with us today!

Debasis Mohanty

Debasis heads the delivery for all client engagements at Verinite. He has a long track record of delivering high quality, responsive, secure and cost-effective business and technology solutions in BFSI domain. Outside his work, he is an amateur animator, a sports enthusiast, a voracious reader and a Trivia buff.

Want to get in touch with us?

Got Questions? We got you covered just contact us for further assistance