Millions of people use ATMs daily in the cities where they live. They do it not only to withdraw cash, but also to check transactions, make transfers, authorize payments, settle bills... But now, during these Holy Week vacation days, it can be a bit more complicated than before to access those ATMs that customers of a bank were used to using to have cash and cover the expenses of this break. Because the number of available ATMs has suffered a significant reduction in recent months, dropping to 43,172 terminals, according to the latest updated data from the Bank of Spain.
This is the lowest level of ATMs in the last 25 years. This figure reveals how in the last year the banks have closed almost 1% of their terminals, or in other words, a hundred. Since the peak of the economic bubble, in mid-2008, the number of ATMs has decreased by almost 19,000, which represents a 30% drop during this period.
However, although the use of banknotes and coins has sharply declined due to the pandemic, there are still shops where they won't let you pay for a purchase under five euros unless it's in cash; establishments that clearly state "no cards accepted" and places where the terminal for automatic payments is quite complicated.
Likewise, the gradual reduction in the number of ATMs is causing more than one headache for users. Because in many cases, the data on the network of ATMs is not updated in the online search engines provided by financial institutions. Finding an ATM is more than complicated in many parts of Spain these travel days.
The start of the closure of bank branches was causing the same effect in the automatic shutdown of the terminals they had on the street. Since the network reached a peak of almost 62,000 points in 2008, it took eight years for banks to start installing more cash dispensers again.
That recession wiped out more than 12,000 ATMs in the first few years, 20% of the points nationwide. However, with the subsequent recovery, starting in 2016, some entities saw in these terminals the opportunity to offer services to their customers without the need to be in an office. More and more ATMs offer the possibility not only to withdraw and deposit cash but also to pay taxes, make transfers...
That's why, from 2016 to 2020, the network increased by about 700 terminals. Until the pandemic arrived and it started to decline again, along with the number of branches. And although in many cases the aim was to avoid a duplication of cash dispensing points—because the offices were very close to each other—in other cases, many small towns were left without their ATM, which had been so hard to obtain.
This reality is also addressed in the agreement signed between the banking sector and the Ministry of Economy in 2022 to prevent financial exclusion. Based on that agreement, the entities committed to ensuring a physical presence in all municipalities with more than 500 inhabitants through various means beyond offices, such as buses, Postal cash services, etc.
Location and commissions
The situation is such that finding an ATM this Holy Week where you won't be charged a fee or, at least, where you pay as little as possible can become a complex operation depending on the province where citizens spend their days off. The map of terminals has changed radically in the past year as a result of agreements between entities to avoid charging fees, from which especially the smaller entities are being left out.
To withdraw cash from an ATM without costs, it is necessary to know which entity leads the market in each territory. And, despite the restructuring that has transformed the banking sector, the presence of the former savings banks continues to define where it is possible to do so more effectively.
The exact opposite is happening to the terminals with which users can pay by card in all types of establishments. The number of POS terminals (as they are technically called) available in shops, bars, and all types of businesses is already approaching 2.68 million, according to data from the last quarter of 2024. They represent a 12% increase compared to the previous year. Purchases made with cards also increased considerably. Throughout last year, 9.2 billion transactions were recorded, which represented a 6.2% year-on-year increase.
Use of cash
Despite the increase in the use of digital payments, cash continues to be the main and most frequently used payment method by the Spanish population. 57% of citizens use cash daily to pay, according to the latest study on cash usage habits 2024 by the Bank of Spain. In fact, cash remains the primary payment method for 59% of citizens.
In any case, a decrease is observed compared to the previous year. In 2023, the percentage of people who paid daily with cash was 65%. The daily use of cash has fallen by eight percentage points in a year.
On the contrary, in 2024, the daily use of mobile payments has increased compared to 2023. Digital payments have increased from 10% to 13%. Whereas in the case of cards, no variation in their possession or use is observed compared to 2023. This trend indicates how Spanish citizens are progressively adopting digital payment methods, driven by convenience, speed, and the increasing availability of technologies that facilitate these transactions. Funcas considers that these changes "reflect a transformation in financial habits, marked by the current coexistence of cash and digital payment methods."
Source: ABC