Cash use rises for first time in 13 years as cost of living increases

The quantity of money withdrawn from ATMs elevated 19% in 2022 as folks tried to keep away from going into debt in the course of the cost of living disaster.

According to the numbers from Nationwide Building Society, greater than 30 million money withdrawals have been made. This is the first time in 13 years that there was a rise in ATM use.

The enhance alerts a partial restoration from a sudden drop when the Covid-19 pandemic hit the UK. For instance, ATM withdrawals dropped 40% from 44.5 million in 2019 to 26.4 million in 2020.

The common quantity withdrawn final 12 months was additionally as much as £105, a 25% enhance on the earlier 12 months, based on Nationwide.

As folks try to raised price range, they’re utilizing ATMs for extra than simply money. Nationwide discovered that 49% of all transactions have been for different companies, such as printing statements, paying payments, altering PINs and paying in money and cheques.

Nationwide reported a 34% enhance in the quantity of money deposits into its ATMs, with the typical deposit £277, which was 37% greater than 5 years in the past.

Otto Benz, director of funds at Nationwide Building Society, mentioned: “For the first time in years, we’re seeing a pure rise in money withdrawals as folks return to utilizing money to assist keep away from moving into debt from the rising cost of living.

“ATMs play a vital role in society, enabling people to easily access cash. However, over the years, they have offered greater capability for people to manage their money, whether that’s checking their balance or paying a household bill.”

The findings distinction with analysis outcomes printed in September final 12 months by cloud-based card processing platform Marqeta, which discovered that individuals have been trying for extra credit score choices and making an attempt to raised handle their funds.

The survey 4,000 folks, together with 1,000 in the UK, Marqeta discovered that so much of customers have been turning to credit score to deal with the rising cost of living, with 57% of these surveyed having used bank cards to make ends meet over the previous 12 months.

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