The transition to digital payments is accelerating in several European countries, with the ATM terminals to lose importance. A recent analysis has placed the Nordic countries as the most prepared for a scenario where physical money can disappear. Portugal can follow this trend, leading to the end of the ATM boxes, although the adaptation is not yet as advanced as in other parts of Europe.
The investigation, conducted by the Norwegian site Finansplassen, was based on data from the World Bank, Eurostat and other public sources. Factors such as the number of automatic boxes, the availability of payment terminals and the percentage of the population with access to digital banking services were evaluated.
Nordic countries lead change
According to Euronews, Norway leads the list, with about 96 percent of the population to use online banking services and one of the lowest numbers of automatic boxes per inhabitant. Finland and Denmark complete the top three, with similar indicators.
According to analysts, the scarcity of multibancos and the high digital infrastructure contribute to less dependence on physical money. In addition, confidence in public institutions and the population dimension reduces barriers to the adoption of new technologies.
The experience of northern Europe
The VIPPS Mobilepay application, created in 2015, is one of the examples of the advancement of mobile payments in these countries. It has 11.5 million users in Norway, Finland and Denmark and allows money transfers simply and immediately.
Despite the advances, the Norwegian parliament has recently approved legislative changes to ensure that citizens can continue to pay cash if necessary. The direction of the country’s civil protection recommends, for example, that each person keeps physical money at home as a precaution.
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Digital security and associated risks
Norway authorities highlight risks such as cyber attacks and prolonged energy failures as reasons for maintaining cash accessible. These concerns were reinforced by statements by Minister of Justice, Emilie Enger Mehl, who highlighted the importance of ensuring alternatives in emergency scenarios.
In Denmark, the Central Bank states that cash payments represent only 8 percent of transactions made in 2023. Most consumers prefer digital methods for reasons of convenience and speed.
Impact of European pandemic and trends
Covid-19 pandemic played an important role in accelerating payments digitization. According to the World Bank, the average payments without money per person increased significantly between 2017 and 2020.
A survey of reveals that in 2022 only 59 percent of transactions in the eurozone were made in cash, against 72 percent in 2019. Although digital payments have earned land, 60 percent of respondents still express the desire to keep physical money as an option.
And Portugal, where is it inserted?
In our country, where the ATM system is deeply rooted in consumer habits, you can face a process of gradual adaptation. Although the number of digital payments is growing in Portugal, especially through bank applications, the traditional infrastructure is still widely used, namely through ATM boxes.
Trends observed in other European countries can influence the evolution of the system in Portugal. Technological modernization and consumer preferences will determine the pace of this transformation. The discussion about the future of the ATM in Portugal could become more relevant as digital payments become predominant in other regions.
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