Digital payments are becoming more common. The UK Payments Council this week said cashless payments made up over half the total payments made by businesses, consumers and financial institutions in 2013. It expects consumers to make more than half their payments this year through means other than cash.
The Reserve Bank of India is also expected to come out soon with a discussion paper on how India can move towards a cashless society.
It is against this backdrop that new data on decreasing transactions on ATMs should be seen. Data released by an industry association shows that while the number of ATMs in India has increased in recent years, average daily transactions have been falling.
One reason could be the growing habit of making payments without using cash. Indians seem to be getting more comfortable with making payments using the Internet or their mobile phones, besides the traditional cheque payments.
Cash may not be king for long.