Cash machine use doubled over the last 6 years

September 15, 2006

By Peter Kenny

Britons are increasingly using cash machines, despite the appearance of over 25,000 ATM’s that charge a fee for their use, so says a new report from APACS, the UK payments association.

The number of UK cash machines has doubled in the past 6 years from 27,379 in 1999 to 58,286 in 2005. With the increase in ATM’s has brought an increase in the frequency of usage. UK consumers make more withdrawals from cash machines than anywhere else in Europe. Around 2.7 billion transactions were made at UK ATM’s in 2005, which calculates at around 42 per person. Germany came in closest to the UK with 2.4 billion transactions, which only amounted to 29.1 per person.

Although there has been a significant increase in the amount of ATM’s that charge a fee for their use, the report from APACS found that of the 38.8 million Britons who use cash machines, over 95 per cent used a cash machine that was free. Many cash machines managed by banks and building societies do not charge a fee.

Brits withdrew an astonishing £172 billion in cash during 2005. APACS found that cash machines operated by banks and building societies offered more than just the service of cash withdrawals, balance enquiries and PIN changes but also account transfers, ordering of statements and cheque-books and even to top up mobile phones.

Sandra Quinn, from APACS, said, “Access to cash machines in the UK has mushroomed over the past 6 years. And whilst bank and building society machines have contributed to this massive growth - and have continued to grow - the key driver has been the entrance of independent, typically non-banking providers who now supply over 25,000 of the UK’s 58,000 cash machines in places we have never seen them before.”