A growing number of consumers rely on their favorite retailers for financial services. But even the retail financial services space is undergoing a dramatic transformation. While traditional ATMs remain fixtures in banks and convenience stores across America, a new generation of multi-service kiosks is rapidly gaining ground…and the numbers tell a compelling story about where this industry is headed.
The Tale of Two Markets: Growth vs. Stagnation
The contrast between traditional ATMs and multi-service kiosks couldn't be starker. The global ATM market, valued at $25.29 billion in 2024, is projected to grow at a modest 3.6% compound annual growth rate (CAGR) through 2030. Meanwhile, the self-service kiosk market—which includes multi-function banking kiosks—is experiencing explosive growth, expanding from $34.36 billion in 2024 to a projected $62.46 billion by 2030, representing a robust 10.9% CAGR.
Even more telling is the bank kiosk segment specifically. This market is expected to surge from $19.57 billion in 2024 to $46.36 billion by 2030, growing at an impressive 16.1% CAGR—more than four times the growth rate of traditional ATMs.
The Decline of Traditional ATMs?
While still considered essential by the unbanked and underbanked (roughly 4+ million people in the U.S.), overall ATM installations have been on the decline for a while. As of 2023, global ATM numbers have declined for three consecutive years, with North America and Europe experiencing a sustained 3% decline in ATM installations. Industry experts project this decline will continue at approximately 1% annually.
Several factors are driving this contraction:
- Digital Payment Adoption: The rapid embrace of mobile wallets, contactless payments, and instant payment systems (like Brazil's Pix) has reduced consumer reliance on cash. In markets like China, the swift adoption of cashless payments has contributed to a rapid fall in ATM installations.
- Branch Closures: As banks cut costs and shift to digital-first strategies, traditional bank branches are disappearing - and taking the ATMs at those locations with them. A recent study analyzing Federal Deposit Insurance Corporation (FDIC) data suggests that physical branches in the United States are closing at an accelerating rate.
- Changing Consumer Behavior: Post-pandemic, customers have shown a marked preference for contactless and self-service options that go beyond simple cash transactions. Over 90% of banking customers now prefer using digital services for their financial needs.
The Rise of Multi-Service Kiosks
While the growth potential of traditional ATMs slows, multi-service kiosks are booming precisely because they offer so much more than cash dispensing. These sophisticated devices combine multiple functions into a single platform. Cash Depot’s BANK IN A BOX, for instance, offers:
- Cash withdrawals
- Cash deposits
- Bill payments
- Mobile top-ups
- Money transfers
- Cryptocurrency purchase and sales
- Retail services integration and more
And these are only a few of the options that are currently available. BANK IN A BOX services continue to expand, with additional options such as gift card purchase and sales, p2p payment app top-ups, and much more on the horizon.
There is a reason the retail self-service kiosk market in the United States was valued at $685.38 million in 2024 and is expected to reach $1.77 billion by 2033. This growth reflects retailers' recognition that modern consumers are demanding comprehensive self-service financial services.
Why Multi-Service Kiosks Are Winning
Operational Efficiency: Multi-function kiosks move many of the most cumbersome service functions (such as money orders and bill payments) away from the register. This reduces lines, often by as much as 30%, and improves service times for employees and customers.
Enhanced Customer Experience: Two-thirds of U.S. consumers favor self-checkout options, and retailers that install comprehensive kiosks report a 15-20% uplift in basket values (QSR Web). These devices eliminate wait times and provide 24/7 access to services that previously required teller assistance.
Revenue Generation: Unlike traditional ATMs that primarily generate income through surcharge fees (which are increasingly unpopular), multi-service kiosks create multiple revenue streams. They can process bill payments, sell money orders, facilitate wire transfers, and even offer cryptocurrency transactions…collecting revenue on each transaction.
Space Optimization: For retailers using BANK IN A BOX, the multi-function kiosk doesn’t only replace the ATM. Instead of a long line of single-use machines (such as Bitcoin ATM and Lottery), it combines services into one piece of equipment, allowing you to reclaim floor space while still meeting customer self-service demands.
The Verdict: Evolution, Not Complete Replacement
Will multi-service kiosks completely replace traditional ATMs? The data suggests evolution rather than immediate extinction. Traditional ATMs will continue to serve as cash workhorses, particularly in markets with high cash usage and in rural areas with limited connectivity. The global ATM market isn't collapsing; it's just being eclipsed by more capable technology.
However, for businesses making new investments for 2026 and beyond, the choice is becoming increasingly obvious. Multi-service kiosks like BANK IN A BOX offer superior functionality, better economics, enhanced customer experience, and future-proof technology. They represent the next generation of retail financial services – and the future of retail self-service customer service.
TL;DR: While customers still visit ATMs, more retailers are moving to multi-function kiosks. Why? Because they offer more of the self-service options customers want - without the additional floor space or hassle.
