Nearly 2,135 ATMs were closed in 2019, representing a 4.1% drop across the country. Is France witnessing the disappearance of cash? How can we explain this trend? Here are some answers.
France now has 50,316 cash dispensers
With 50,316 ATMs in operation at the end of 2019, compared with 52,451 the previous year, the number of ATMs fell by 4.1% in one year in France, according to figures from the Ministry of the Economy and Finance and the Banque de France published on July 29, 2020. This decline is concentrated in the most populous areas, which are already well equipped. In fact, towns with 10,000 or more inhabitants saw a 4.7% drop in the number of ATMs.
Despite these figures, the Banque de France assures us that ATM accessibility has not changed, with the number of communes equipped with at least one ATM having fallen by only 0.2% in one year. The institution also notes that 99% of French people have one in their commune or in a town less than 15 minutes away by car. By contrast, in 2019, almost 20,000 communes (56.9% of French communes) had neither an ATM nor a private access point.
Towards a change in consumption and payment patterns
The decline in the number of cash dispensers in France reflects changing consumption and payment patterns. Traditional cash usage fell by 13.2% between 2012 and 2019 in value terms. The impact of the Covid-19 crisis on cash use remains uncertain to this day, but the rise in contactless payments could "further accelerate the substitution of electronic payments for cash", says the Banque de France.
The success of contactless payment is no longer in doubt: 1 billion transactions recorded in France in 2017, almost 2 billion in 2018 and 3 billion in 2019. Right from the start of the health crisis, this payment method appeared to be one of the barrier gestures that could limit the risks of contamination during everyday purchases, so much so that the limit for contactless card payments was raised to 50 euros.
Mobile payments have also increased with the rise of online banking. Smartphones now work just like bankcards, thanks to NFC technology, which enables data to be transmitted over a short distance using a dedicated application. This ease of use is attracting more and more consumers, and companies are not hesitating to position themselves in this market by offering tailor-made solutions. Although its use is growing, mobile payment is not yet the norm, due to the risks of attack and fraud that deter many users.