Cash 101

Issue 239 | 20 January 2022

In this edition of Payments:Unpacked Tracker we take an in-depth look at the latest values and volumes of cash acquisition through the UK’s LINK ATM network.

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Weekly ATM value and volume figures 16 January 2022.

Key observations for the week ending 16 January 2022:

• The volume of ATM transactions increased by 11% when compared to the previous week in 2022.

• The volume of ATM transactions increased by 23% when compared to the equivalent week in 2021.

• The volume of ATM transactions decreased by 35% when compared to the equivalent week in 2020.

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Weekly LINK ATM transaction volumes

Last week there was a total of 27.2 million ATM transactions which represents an increase of 2.6 million ATM transactions over the previous week.

In 2022, there was an increase of 5 million transactions or 23% when compared with the equivalent week in 2021.

Since the Summer, the volume of ATM transactions had been tracking very closely to 2020. However, the paths for 2020 and 2021 diverged at the beginning of November reflecting the difference in conditions as the impact last year from the second lockdown could be seen. The divergence though was caused by the reduction in the volume of transactions in 2020 rather than any growth in 2021 with activity remaining steady as evidenced in the graph below.

For the first three weeks in December the graphs were once again merging as caution increased for 2021 in the light of the new variant as well as the re-introduction of some restrictions. Meanwhile 2020 saw an increase in volumes as many areas emerged from Lockdown 2.0 albeit with similar levels of restrictions in place to the current time. A seasonal fall can then be seen at the end of December across all the years.

Activity in 2022 is now starting to pull away from 2021 as expected given the Lockdown restrictions last year. We would expect to see this continue for the next few weeks with the paths merging again from around April or May.

Source: LINK

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From Lockdown 1.0, 2.0, Tiers & 3.0 to Steps 1 to 4 out of Lockdown and now Plan B….

This graph shows the impact on ATM Transactions throughout the first year of lockdowns in 2020 and initially at the beginning of 2021 with Lockdown 3.0. Then a gradual increase from January to March can be seen followed by the spikes at the end of March and mid April as restrictions were eased at each of these stages.

This was followed by increased activity over the May bank holidays with fairly consistent volumes seen since that time. Since the Summer months activity across both 2020 and 2021 was very closely matched with the exception of the comparison with Lockdown 2.0 in November 2020.

The usual seasonal fall at the end of December is clearly evidenced in the graph below which follows a usual pattern although overall activity this year is also likely to have been further dampened by the overall Covid restrictions in place and cautious behaviour.

After a slow start to January the volume of ATM transactions has accelerated in the last week although it remains well below pre-pandemic levels.

ATM Transactions are likely to increase back to the recent volumes seen and thus whilst digital payment habits have been reinforced during each lockdown, there is still a consistent underlying level of cash usage by those who need to rely on cash and by those who choose to rely on cash.

Source: LINK

This next graph also shows the trajectory of ATM Transactions through each lockdown and the easing of restrictions at each stage.