Will Mobile Payments Replace Cash? Why ATMs Aren’t Going Away

Will Mobile Payments Replace Cash? Why ATMs Aren’t Going Away

Mobile payments are growing quickly. Apple Pay, Google Pay and contactless credit and debit cards have changed the way Americans pay for everyday purchases.

So, does that mean cash is finally going away? And if consumers increasingly pay with their phones, what does that mean for the future of ATMs?

The latest payment data suggests that while consumers are embracing new payment methods, cash is far from disappearing.

Cash Use Has Declined, But It Has Stabilized

There is no question that Americans use less cash than they did 10 or 20 years ago. Credit cards, debit cards, online shopping and mobile payments have all taken a larger share of consumer spending.

However, recent Federal Reserve data highlighted by ATM Marketplace shows that the decline in cash use has begun to stabilize.

Cash represents approximately 16% of U.S. consumer payments, making it the third-most-used payment method behind credit and debit cards.

Even more interesting is how cash compares with mobile payments.

In 2025, the average consumer made approximately six cash payments per month compared with only one mobile payment.

Mobile payments are certainly growing, but they haven’t replaced cash.

Most Americans Still Carry and Use Cash

Perhaps the most telling statistics aren’t about cash’s percentage of total payments.

They’re about how many people still use it.

More than 80% of consumers used cash at least once during the previous 30 days, while approximately 76% reported carrying cash.

Most importantly, 90% of consumers said they had no plans to stop using cash.

That’s difficult to reconcile with the idea that America is suddenly becoming completely cashless. Instead, consumers appear to be adding new payment options without necessarily abandoning the old ones. Someone might use Apple Pay at a coffee shop, a credit card for an online purchase and cash at a restaurant or convenience store later that same day. Consumers increasingly expect choice.

Why Cash Still Matters

Cash continues to have advantages that digital payments can’t duplicate.

Cash doesn’t require a smartphone, charged battery, internet connection, cell signal or working payment terminal. It can also serve as a backup when a merchant experiences an internet outage, processing issue or equipment failure.

Consumers may use cash less frequently while still wanting to have it available.

That’s an important distinction.

Using less cash isn’t the same thing as no longer needing access to cash.

And convenient access to cash is exactly what an ATM provides.

Are ATMs Going Away?

This is where national payment statistics can become misleading for business owners.

If cash represents 16% of payments, it might sound like there isn’t much demand for an ATM. But an ATM doesn’t need every customer to use cash to be profitable.

Consider an ATM completing 100 withdrawals per month. That’s only around three or four transactions per day.

At a $3 surcharge, those 100 transactions could generate approximately $300 per month in surcharge revenue, before expenses.

The ATM doesn’t need cash to become America’s most popular payment method again. It simply needs enough customers at that particular location who want convenient access to cash. That’s why ATM performance is highly dependent on the individual business.

A busy convenience store, bar, restaurant, hotel, liquor store, pharmacy or other cash-friendly business can have significantly different cash demand than the national average.

Mobile Technology May Become Part of the ATM

There is another interesting part of the mobile-payments-versus-ATM discussion.

The two technologies don’t necessarily have to compete.

Modern ATMs increasingly support NFC and contactless technology. As ATM technology continues to evolve, smartphones and digital wallets could potentially become another way consumers interact with ATMs. In other words, mobile technology doesn’t necessarily have to replace the ATM. It could become part of it.

ATMs have continually evolved over the years with better security, connectivity, remote monitoring, touchscreen interfaces and contactless hardware. There is every reason to believe that evolution will continue. The fundamental purpose of the ATM remains the same: giving consumers convenient access to their cash.

Should You Still Buy an ATM in 2026?

For the right business, absolutely. Instead of asking, “Is cash declining?”, business owners should ask:

“Do enough customers at my location need access to cash?”

Those are two very different questions.

A good ATM location doesn’t require hundreds of withdrawals every day. Even a relatively small percentage of customers using the machine can produce meaningful surcharge revenue. Location, foot traffic, customer demographics, surcharge amount, nearby ATM competition and the type of business are much better indicators of ATM potential than nationwide payment statistics.

Mobile payments will continue to grow. Credit and debit cards aren’t going anywhere either. But that doesn’t mean cash has to disappear. The future of payments probably isn’t cash versus digital. It’s giving consumers more ways to pay and access their money. And with the overwhelming majority of consumers still using cash — and 92% saying they don’t plan to stop — ATMs continue to have an important role to play.

Thinking About Buying an ATM?

Best Products Sales & Service has been helping businesses with ATM equipment, ATM processing and service since 1998.

Whether you’re considering your first ATM or operate an existing ATM portfolio, we can help you choose the right equipment, establish processing and determine whether ATM ownership makes sense for your location.

Looking to buy an ATM? Contact Best Products Sales & Service and let us help you find the right ATM solution for your business.

This article references data from the Federal Reserve’s 2026 Diary of Consumer Payment Choice, an annual study examining how U.S. consumers use cash, credit cards, debit cards and other payment methods. Additional industry perspective was referenced from ATM Marketplace’s September 2026 article, “Will Mobile Payments Replace Cash?” Statistics and payment trends cited are based on the most recently available data at the time of publication.

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