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Photo = Yonhap news |
[Alpha Biz= Paul Lee] China is witnessing a sharp decline in the number of Automated Teller Machines (ATMs), primarily due to the rapid adoption of mobile payment solutions.
According to local media outlets including Ji Mian News and Times Finance on May 26, approximately 300,000 ATMs have been gradually removed every five years across the country.
The People’s Bank of China’s “2024 Payment System Operation Report” revealed that by the end of 2024, the total number of ATMs nationwide stood at 802,700—a 26.8% decrease from the peak of 1,097,700 units recorded at the end of 2019. This means about 300,000 machines have been phased out in five years.
As ATM usage declines, many banks are scaling back cardless cash withdrawal services. Over 50 banks discontinued cardless and QR-code based withdrawal services throughout 2024. China Commercial Bank also announced in April it would fully halt QR code deposit functions at ATMs, citing concerns over financial fraud.
While ATM numbers shrink, electronic payments are booming. QR code-based mobile payments like WeChat Pay and Alipay have surpassed credit cards to become the primary payment methods.
The People’s Bank of China reported that electronic banking payment transactions reached 301.68 billion in 2024, up 35% from 223.38 billion in 2019. The transaction value increased by 31.4% to 34.27 trillion yuan (approx. 65.4 quadrillion KRW) during the same period.
However, cash remains essential for elderly users, foreign tourists, and residents in remote areas, making the complete removal of ATMs unlikely. The Chinese government plans to continue a gradual reduction of ATMs while promoting a balanced use of diverse payment methods.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
