Global Cardless ATM Market Outlook to 2030

Global Cardless ATM Market Overview

• The global cardless ATM market is valued at USD 2.8 billion, based on a five year historical analysis. This market is primarily driven by the growing demand for digital banking services, heightened by the increased use of smartphones and mobile applications that enable contactless transactions. Additionally, the environment accelerated the adoption of contactless services as users became more inclined toward secure, hygienic, and convenient financial solutions.
• The market is predominantly led by regions like North America, Europe, and Asia Pacific. North America, particularly the United States, dominates the market due to its advanced banking infrastructure and higher consumer adoption rates of digital banking solutions. Similarly, Europe, with countries like the United Kingdom and Germany, follows closely, thanks to a robust regulatory framework that encourages the development of innovative banking technologies.
• TheDigital Indiainitiative aims to transform India into a digitally empowered society. It focuses on three key areas like digital infrastructure, governance on demand, and citizen empowerment. The initiative aimed to make 6 crore rural households digitally literate, promoting inclusivity and economic growth.

Global Cardless ATM Market Segmentation

By Technology: The market is segmented by technology into QR code based, NFC-based, biometric-based, token based, and SMS based technologies. QR code-based technology has dominated the market share due to its simplicity and widespread adoption by banks and financial institutions. The technology's minimal hardware requirements and compatibility with existing ATM systems have made it a cost-effective and scalable solution for financial institutions.

By Application: The market is also segmented by application into bank owned ATMs, independent ATM deployers, commercial complexes, transportation hubs, and others. Bank owned ATMs hold the dominant market share, mainly because banks are the primary facilitators of the cardless ATM infrastructure. Financial institutions have been focusing on upgrading their ATMs to support cardless functionality, as it enhances customer convenience and reduces the likelihood of card fraud.

By Region: The market is segmented by region into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America leads the market, driven by the early adoption of advanced banking technologies and the proliferation of digital wallets. The U.S., in particular, has a strong focus on upgrading financial infrastructure to enhance customer experience. Europe is another dominant region, driven by regulatory frameworks like PSD2, which promotes secure and efficient banking transactions.

Global Cardless ATM Market Competitive Landscape

The market is dominated by several key players that hold a share of the market. These companies have established strong brand recognition, and they invest heavily in technology to maintain a competitive edge. Key players have also formed strategic partnerships with fintech firms to enhance their service offerings and ensure a seamless customer experience.

Global Cardless ATM Market Analysis

Market Growth Drivers

• Increasing Adoption of Mobile Banking: As of 2024, around 5.3 billion people globally are using smartphones, leading to a surge in mobile banking solutions. This growing user base for mobile banking apps is driving the adoption of cardless ATMs, where users can withdraw cash without a physical card by using mobile banking applications. With mobile penetration reaching about 68% of the global population, cardless ATMs offer a seamless integration between smartphones and ATM withdrawals, enhancing customer convenience.
• Enhanced Security and Fraud Reduction: Cardless ATMs are increasingly seen as a secure option due to the elimination of physical card skimming and cloning, a problem responsible for an estimated loss of $2.1 billion globally in ATM frauds during 2023. The implementation of two factor authentication and biometric verification in cardless ATMs further enhances transaction security, thus encouraging both financial institutions and consumers to adopt this technology.
• Rise in Demand for Contactless Payments: Following the pandemic, there has been a rise in contactless payment methods. As of 2024, over 900 million people globally prefer using contactless payment methods for transactions. Cardless ATMs align with this shift in consumer behavior, offering a contactless way to withdraw cash, particularly appealing in a world where health concerns have accelerated the move towards touch free transactions.

Market Challenges

• Limited Network Coverage in Rural Areas: As of 2024, cardless ATM services are concentrated in urban and metropolitan areas, leaving rural regions underserved. In many countries, over 70% of ATMs with cardless features are located in cities, creating a significant gap in accessibility for rural populations who might benefit from such services.
• Cybersecurity Concerns: Although cardless ATMs offer advanced security features, concerns about digital fraud and hacking remain high. In 2023, global cybercrime losses amounted to over $8 trillion, and the financial sector was one of the top targets. Ensuring robust cybersecurity measures for mobile based ATM transactions is a key challenge for the growth of this market.

Global Cardless ATM Market Future Outlook

Over the next five years, the global cardless ATM industry is expected to show substantial growth, driven by continuous technological advancements, increasing consumer demand for contactless and secure banking solutions, and expanding fintech collaborations. The growing penetration of mobile phones and internet services in emerging markets like Asia Pacific is likely to accelerate market expansion further.

Future Market Opportunities

• Expansion of Biometric Authentication: By 2029, biometric verification, such as facial recognition and fingerprint scanning, will be the standard across cardless ATMs globally. With more than 150,000 ATMs expected to adopt these biometric technologies, this will become the most secure and widely used method of cash withdrawal, driving adoption among users who prioritize security.
• Wider Deployment in Developing Markets: Over the next five years, cardless ATMs will expand significantly in developing regions, including Africa, South Asia, and Latin America. By 2028, it is projected that more than 50% of ATMs in these regions will be cardless enabled, bridging financial accessibility gaps for underserved populations in emerging economies.