Based on a recent report from the Bank of Spain, the network had only 48,081 ATMs at the end of the third quarter of 2021. The number of ATMs in Spain has also dropped to its lowest level since 2002, when the network had only 1,795 more ATMs than it does today. The reduction has to do with attempts to reduce costs in the banking sector amid pressure to move towards digitization for payments and banking processes.
The highest number of ATMs in the network was registered in 2008 when there were 61,714 ATMs registered in the country. Since then, banks have gradually reduced the machines. Waimna so, due to existing limitations, the use of ATMs has increased. In the third quarter of 2021, Spaniards made a total of 171,300 withdrawal transactions using ATMs, an increase of 1.04% over the same period in 2020.
On the other hand, the Spanish government has also reduced the amount of money that can be paid in cash for each transaction. Last year, an anti-money laundering law in Spain was enacted which also regulates several issues regarding cryptocurrencies and controls for cash payments depending on the type of transaction.
The law stipulates that payments in cash can only be made up to a limit of € 1,000. Disregarding this law can result in a fine of 25% of the payment made, which will be paid by each party in the transaction.
However, local media noted this development could affect Spaniards in rural areas disproportionately as they are more dependent on cash for their daily needs.
Recent pressures have pushed more of the country’s population to digital payments. For example, a national survey for cash payments, conducted in July 2021, found only 35% of citizens surveyed use cash for payments. This is a significant change compared to the way payments were made in 2014, where 80% of citizens used cash as a means of payment.
Although cash consumption has declined, Spain still uses more cash for payments than countries like Sweden, where less than 10% of the population uses physical paper and coins to pay.
Some analysts are optimistic that Spain will take a more crypto -friendly approach in the future.
