The value of Automated Teller Machine (ATM) transactions dropped by 13.6 percent year-on-year (YoY) to N28.2 trillion in 2023 from N32.65 trillion in 2022, according to the Central Bank of Nigeria’s (CBN) March 2024 statistical bulletin.
The data also revealed a decrease in the volume of ATM transactions, which fell by 7 million or 0.5 percent YoY to 1.38 billion in 2023 from 1.387 billion in 2022.
Conversely, Web Pay or internet transactions saw significant growth during the same period, surpassing ATM transactions in both volume and value.
The value of internet transactions increased by 40 percent YoY to N1.097 trillion in 2023 from N783.66 trillion in 2022. The volume of internet transactions rose by 54.7 percent YoY to 21.75 billion from 14.06 billion in 2022.
This decline in ATM transactions is linked to the cash scarcity in the first quarter of 2023, caused by the redesign of the N200, N500, and N1,000 notes by the previous administration to control inflation and reduce currency outside banks.
This situation led to a higher use of internet banking, mobile transfers, wallets, and Point of Sale (PoS) systems for payments.
The increased adoption of digital payment methods in Nigeria can be credited to various CBN policies aimed at enhancing financial inclusion and achieving its cashless policy goals.
