The business of Automated Teller Machines (ATMs) is witnessing a crisis and is, supposedly, at the verge of extinction. What was once thought to be a vital component of the banking industry, is now being taken down to the margins.
The number of ATMs which had doubled between 2012 and 2015 (nearly 1 lakh), has gone sluggish around 2lakhs and hardly showed any growth in the past 6 months. The number of debit card transactions has fallen down close to an average of 660 million a month from 750 million before demonetization.
When cash is less relevant
The number of Point of Sale (PoS) terminals hopped to straight 2.7 million in june from 1.5 million in November in last year. Mobile banking transactions jumped to 390 million in 2015-2016 from 53 million in 2012-2013.
The advent of online wallets such as Paytm, which can be used for the payment of a pen to recharge set top boxes, has made younger generation skip the cash payments.