Europe Paytech

Cash Withdrawals in the UK Fell 46% Due to COVID-19 as Digital Payments Boom

Data acquired by Wallter, a regulated financial institution providing cross border payments, shows that the value of ATM withdrawals in the UK during Q2, 2020 was £22,086 million. Compared to a similar period last year, the value represents a drop of 46.7% when the number was £41,430 million.

Overall, before the pandemic, the value of ATM withdrawals have been declining with the growth of digital payment options. Since 2018, the ATM withdrawals under operator LINK has been declining significantly. In 2018 ATM cash withdrawals stood at £125.37 billion while in 2019, the number dropped by 7.14%. By October the ATM withdrawals stood at £67.9 billion.

The data shows that in the wake of the coronavirus pandemic, digital payment occupied the centre stage. During Q2 2020, PayPal’s payment volume amounted to $221.7billion, a 29% year on year growth. PayPal’s subsidiary Venmo payment volume was $37 billion translating to a 52% year-on-year growth.

Elsewhere, during Q1 2020, payment facilitator Ayden processed volumes of €129.1 billion, a growth of 23% year-on-year. Zelle processed volumes of $133 billion, which represents a growth of 21% compared to the previous two quarters.

The research explained that the rise in digital payments amid dwindling ATM withdrawals values. The research report said: “Digital payments, e-commerce and on-demand economy platforms are the big winners of the pandemic. As an alternative to public transport, eating out, fetching groceries, going to the office and living in crowded cities, those who could, opted for apps that offer ride-hailing, food delivery, ordering groceries online, freelancing and finding a short-term rental on a lodging platform. Behind the scenes of all these e-commerce platforms are digital payments platforms that are being rapidly adopted by the late majority and even laggards.”

Author

  • Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

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