Sunday , July 5, 2020

Cardtronics Sees a Recovery in U.S. ATM Cash Withdrawals as States Reopen

Volume in some of its foreign markets is still way down as a result of the Covid-19 pandemic, but leading non-bank ATM network operator Cardtronics plc reported Monday that same-store U.S. cash-withdrawal transaction volumes were off only 3% in the first half of June from a year earlier. 

PSCU, a credit-union service organization, reported a different story Monday, saying its ATM cash withdrawals are still down by more than 20%.

But Houston-based Cardtronics said in a business update that total cash dispensed in its U.S. ATMs jumped nearly 10% year-over-year on a same-unit basis in June following 3% growth in May from May 2019. 

“With our recent performance and better than expected recovery, effective July 1 we will remove the company-wide temporary salary reductions that we implemented on April 1,” chief executive Edward H. West said in a statement.

With businesses closing or greatly reducing operations as states and cities implemented stay-at-home orders, Cardtronics’ U.S. same-store withdrawals had plunged 28% in the second half of March and 23% in April before they improved to a 14% decline in May as restrictions began to ease in many places. Transaction volumes have picked up the most outside the nation’s 20 largest metropolitan areas, Cardtronics said, though large markets that re-opened early, such as Atlanta, Houston, and Dallas “are at prior-year transaction levels from May 31-June 12,” Cardtronics said.

It’s a different story in some of Cardtronics’ other markets. In the United Kingdom, year-over-year transaction volumes have been down “less than 50% for the past several weeks,” though that’s an improvement from the 60% trough in late March. “Transaction levels in the U.K. continue to reflect the strict shelter-in-place orders that have been in place,” the update says. “Additional easing of lockdowns are planned to begin this week; however, most bars, pubs, and dine-in restaurants are not expected to re-open until July.”

Besides the United States and United Kingdom, Cardtronics, which owns 75,000 ATMs and manages 210,000 more, also operates in Canada, Mexico, Germany, Spain, South Africa, Australia, and New Zealand, according to a May investor presentation.

“In Germany, Canada, and Australia, performance through the pandemic and recovery has been gradual, with casino and gaming sites still heavily impacted,” the report says. “However, most ATMs are now transacting, and we have seen more recent signs of accelerating improvement in early June as more restrictions have been lifted.” In South Africa, a high-growth market for Cardtronics, “transactions have nearly recovered to pre-Covid levels,” the company said.

Meanwhile, St. Petersburg, Fla.-based PSCU, a credit union service organization, said in its latest Covid-19 impact report that cash-withdrawal transactions at ATMs “have been down 20% or more for 11 straight weeks, indicating less of a preference and desire for cash. For the most recent week, withdrawal amounts are down 23.8%.”

Check Also

European Banks Plan Payment Network and other Digital Transactions News briefs from 7/2/20

A group of 16 European banks said they plan to launch a “truly European” unified payments system …

Do NOT follow this link or you will be banned from the site!