With the widespread adoption of mobile payments and the accelerated digital transformation of banks, ATM machines that were once ubiquitous on street corners are "disappearing" at a visible pace.
According to the "Overall Operation of the Payment System in the First Quarter of 2026" recently released by the People's Bank of China, as of the first quarter, the number of ATMs nationwide has dropped to 725,800, a decrease of 19,900 compared to the fourth quarter of 2025, and a reduction of nearly 35% from the historical peak of 1.1114 million in the first quarter of 2019.
Analysts point out that the "contraction" in the number of ATMs is the result of changes in payment habits and adjustments in banks' operational strategies. In the future, the number of ATMs in China will continue to decline but will not disappear entirely. Instead, they will shift toward more precise and scenario-based deployment.
Daily Disappearance of 154 ATMs
Based on the payment system operation data released by the central bank over the years, the scale of ATMs in China reached its peak in the third quarter of 2018 at 1.1286 million units, with 8.12 ATMs per 10,000 people. Since then, the number has entered a trend of decline.
Particularly in the second quarter of 2020, the number of ATMs dropped sharply by nearly 100,000 units to 986,700 compared to the previous quarter. Although there were brief rebounds above 1 million units in the fourth quarter of 2020 and the first quarter of 2021, the downward trend ultimately could not be reversed.
As of the first quarter of 2021, the number of ATMs in China was 1.0062 million. Since then, it has continued to decline, falling below 1 million units again to 986,700 in the second quarter of 2021, dropping below 900,000 units to 895,900 in the fourth quarter of 2022, and falling below 800,000 units to 792,500 in the first quarter of 2025. By the first quarter of 2026, the latest figure was 725,800, a sharp decline of nearly 30% compared to the first quarter of 2021.
In other words, over the past five years (from the first quarter of 2021 to the first quarter of 2026), the net reduction in ATMs amounted to 280,400 units, equivalent to 154 ATMs disappearing from public view every day.
In stark contrast, the penetration rate of mobile payments continues to rise. Data from the central bank shows that in 2025, banks nationwide processed 319.721 billion electronic payment transactions, amounting to 3,623.20 trillion yuan. Among these, mobile payment transactions accounted for 231.464 billion, with a value of 571.97 trillion yuan, representing year-on-year growth of 9.71% and 1.47%, respectively.
Contactless payment methods such as QR code scanning, facial recognition, and NFC have covered all scenarios, including retail, dining, and transportation, leading to a significant decline in the frequency of cash usage among residents. The "2024 Mobile Payment User Usage Survey Report" indicates that 82.9% of users use mobile payments daily. The penetration rates of mobile payments in consumption scenarios such as food and beverage, transportation, public services, transfers and repayments, and healthcare reached 96.7%, 73.8%, 69.3%, 55.2%, and 42.6%, respectively.
"On one hand, with the widespread adoption of mobile payments, which now cover the majority of daily small transactions, the volume of electronic payment transactions continues to grow, while the demand for cash has significantly decreased. On the other hand, the high operational and maintenance costs per ATM, coupled with declining transaction frequency leading to an imbalance in input-output ratios, have prompted banks to proactively reduce inefficient equipment," said Wang Pengbo, chief analyst at Broadcom Consulting. "At the same time, the accelerated digital transformation of the banking industry, with new terminals like smart counters integrating more functions, has also partially replaced the service scenarios of traditional ATMs."
In their 2025 annual reports, several listed banks disclosed the number of ATMs. For example, Industrial and Commercial Bank of China reduced its self-service banks by 523, smart devices by 4,159, and ATMs by 2,642 last year, with the annual transaction volume of ATMs decreasing by 298.3 billion yuan. China Construction Bank reduced its operating ATMs by 2,635 and smart counters by 4,798. China CITIC Bank reduced its self-service equipment by 1,403 and smart counters by 133.
"Shifting Gears for Survival" and "AI+" Strategies of Listed Companies
The "cold wave" in the financial equipment industry has genuinely impacted the financial reports of related listed companies.
Taking Yuyin Shares (002177.SZ), the only privately listed company in the financial self-service equipment industry, as an example, since 2022, the company has actively scaled back its traditional financial equipment business. Annual reports show that its ATM-related revenue shrank from 182 million yuan in 2020 to 1.13 million yuan in 2025, accounting for only 1.92% of its operating revenue. Today, the company has "shifted gears for survival," transforming into an industrial park operator.
In its 2025 annual report, Yuyin Shares stated that against the backdrop of the continuous popularization of non-cash payments and the structural contraction of banks' investment in cash equipment, the company strategically adjusted its smart financial equipment operation services business. By the end of the reporting period, the related existing business had been fully delivered and smoothly concluded.
Hengyin Technology (603106.SH), which focuses on the research, production, and sales of financial self-service equipment, also could not escape the downturn. Last year, the company's revenue decreased by 16.96% year-on-year, with a further decline of 39.76% in the first quarter of 2026. Cash-based self-service equipment continued to contract, with production volume falling by 53.57% and sales volume dropping by 32.72% year-on-year.
A company representative stated that the financial smart terminal industry was affected by technological iteration cycles and the cyclical nature of financial procurement in 2025. Banks' IT investments shifted toward digital and intelligent system construction, while traditional financial smart terminals were in a technology upgrade cycle, leading to a decline in industry procurement volume. The financial smart terminal industry has now fully transitioned from traditional price competition to comprehensive value competition. Coupled with the transformation of bank branches and adjustments in industry demand structure, the market size for traditional cash equipment has naturally contracted, and the pressure on periodic revenue is a common trend in the industry.
Faced with industry changes, Hengyin Technology is transitioning from a traditional financial smart equipment manufacturer to the field of artificial intelligence. By leveraging high-value-added products equipped with AI algorithms, security encryption, domestic platforms, integrated solutions, and full-lifecycle services, the company aims to enhance the comprehensive value and profitability of its products. Simultaneously, it is accelerating the shift toward a comprehensive revenue model of "hardware + software + data + operational services" to cultivate new growth curves.
Preserving the Availability and Convenience of "Cash Services"
However, amid the rapid surge in mobile payments, it is equally important to preserve the right to choose cash for people of different generations and backgrounds. To this end, regulatory authorities continue to guide banks in configuring necessary ATMs to ensure the availability and convenience of cash services.
At the end of last year, the central bank, in collaboration with the National Development and Reform Commission and the National Financial Regulatory Administration, formulated the "Regulations on RMB Cash Collection and Payment Services." According to the regulations, banking financial institutions should use cash self-service machines (including cash deposit and withdrawal machines, cash withdrawal machines, etc.) to handle cash deposit and withdrawal businesses. The functions and quantity of cash self-service machines should meet customers' cash deposit and withdrawal needs. Convenience should be provided for the elderly, people with disabilities, and foreign nationals in handling cash transactions, with reasonable deployment of cash self-service machines considering their needs and habits. Based on the scale of cash transactions and the characteristics of deposit and withdrawal businesses, the layout of bank branches and cash self-service machines should be optimized to ensure their coverage meets the needs of cash services in society.
Wang Pengbo noted that in the future, the total number of ATMs will certainly continue to decline but will not disappear entirely. Moreover, their deployment will be adjusted. For example, redundant equipment in core areas of first- and second-tier cities will gradually be phased out, with a focus on retaining equipment in locations with concentrated cash demand, such as communities and transportation hubs. Equipment resources will be directed toward rural areas with low mobile payment penetration and communities with a high concentration of elderly residents to ensure basic cash services. Additionally, functions such as age-friendly modifications and digital yuan-to-cash exchanges will be incorporated to meet the needs of diverse scenarios.
Comments