Value of ATM cash withdrawals down 33% since pre-pandemic times

Globally, the covid-19 crisis led to a decline in the use of cash due to fears of spreading the virus, with Ireland no exception.

All told, Irish cash withdrawals amounted to roughly €1.5bn per month in pre-pandemic times, the Central Bank said, before a severe dropoff with the advent of lockdowns.

Between May 2020 and the present day, withdrawals have fallen to €1bn per month, suggesting a broader enthusiasm across society for cashless transactions.

On average, some 7m withdrawals are made from Irish ATMs each month at present.

In a briefing note, the Central Bank said that the ATM figures should not be considered as definitive, given that cash can be accessed over the counter and via cashback facilities in retail outlets.

Detailed data on cashback takeup is not available, it said, adding that over-the-counter withdrawals reduced from €5.4bn in 2019 to €4.7bn in 2021, the most recent year for which figures are available.

Over-the-counter deposits, meanwhile, fell from €3.9bn in 2019 to €3.2bn in 2021, a drop of 18%.

The Central Bank said that, according to figures from the Department of Finance, one in five Irish adults prefer to pay in cash in shops, while the average claimed proportion of in-store cash spending is 31%.

It said that heavier use of cash is made by older age groups, certain professional cohorts, and those living in rural areas.

Only 11% of respondents to a 2022 Department of Finance survey said that they never use cash, the Central Bank said.

A separate study, conducted by the European Central Bank and published last December, found that cash accounts for roughly half of all Irish transactions both in terms of numbers and in terms of the amounts paid.

It found that 64% of Irish people consider it important that the option to pay with cash be made available.

Celine Clarke, spokeswoman for advocacy group Age Action, described the advent of a cashless society as being “a push more than a move”.

“That push will disadvantage people who are digitally excluded, which is the case with the majority of older people,” she said. “To be cashless means having the ability to digitally bank.

“We estimate that there are 630,000 people in Ireland aged 60 and over who are digitally excluded. That could mean you are not on the internet or you don’t have the skills to safely conduct your business online.”

Ms Clarke said events such as GAA matches or cinema screenings that have defaulted to cashless payment have the effect of making people incapable of paying electronically “feel unwelcome”.

She said Age Action’s argument is for “an inclusive banking model”.

“More needs to be done to protect cash in the economy, not just for older people but for other marginalised groups, like those subjected to domestic violence or coercive control in relationships, or even those working in the gig economy who are paid in cash,” Ms Clarke said.