A resident who typically uses an ATM in their apartment complex, identified as A, recently sought to withdraw cash for a wedding gift but found the machine had been removed. After arriving at the venue, A had to use an ATM on-site, incurring a fee of 1,300 won.
While cash usage is declining, consumers who still rely on it are expressing frustration. As banks reduce the number of ATMs, locations to withdraw cash are disappearing, and more stores and buses are refusing cash payments. This shift is convenient for consumers accustomed to cards and digital payments, but it raises concerns about accessibility for those dependent on cash.
According to the financial sector, the five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—reported a total of 18,454 ATMs at the end of the first half of this year, a 46.1% decrease from the end of the first half of 2016. The demand for cash withdrawals has also diminished, with the number of cash withdrawals through the CD network dropping from 271.27 million in 2014 to 146.45 million in 2023, a decline of 46.0% over nine years.
The amount and proportion of cash expenditures are also decreasing. According to the Bank of Korea, the average monthly cash expenditure per individual fell from 506,000 won in 2021 to 324,000 won in 2025, a 36.0% decrease over four years. The share of cash in monthly expenditures also dropped from 21.6% to 17.4%, a decline of 4.2 percentage points during the same period. The rise of card payments and smartphone-based digital payments has reduced the necessity to carry or withdraw cash.
Retailers and service providers are also moving to limit cash transactions. Daiso has begun operating some stores as 'cashless,' refusing cash payments at those locations.
In public transportation, the number of routes that do not accept cash is increasing. As of September, the city of Seoul operated 3,070 cashless buses across 183 routes, accounting for about 40% of all routes.
A Seoul city official stated, "We are distributing guides to help passengers who cannot use cards pay via bank transfers, but we have received complaints about the inconvenience. There are currently mixed opinions on the introduction of cashless buses."
For businesses, reducing cash handling can enhance operational efficiency. It minimizes the tasks of counting cash and preparing change, streamlining payment and settlement processes. This can also speed up customer service and reduce wait times, which is a key reason for the preference for digital payments.
However, some companies are still allowing cash payments while promoting cashless transactions. Samsung Electronics Service has been piloting cashless service centers since September, but still accepts cash if customers request it.
A representative from Samsung Electronics Service noted, "As the proportion of cash payments continues to decline each year, we have introduced cashless centers. However, we still accommodate customers who prefer to pay with cash." Starbucks is also encouraging cashless payments but currently accepts cash at all locations.
The challenge is that reducing cash handling can lead to limitations on payment options, narrowing consumer choices. Even as card and digital payments become more common, not all consumers can access these methods freely. This is particularly true for the elderly and those less familiar with smartphones or digital financial services, who may face difficulties in a cash-restricted environment.
A survey conducted by the Bank of Korea last year found that 5.9% of respondents had experienced being refused cash payments. As both cash withdrawal points and places to spend cash diminish, consumers reliant on cash may encounter increasing challenges in their financial and purchasing activities.
Professor Hwang Yong-sik from Sejong University stated, "With card usage becoming commonplace and the hassle of managing cash, store owners are increasingly inclined to standardize payment methods to cards or digital payments. While the trend of declining cash usage is inevitable, it is essential to provide sufficient transition time and support for digital payment adoption, especially for the elderly who primarily use cash."
* This article has been translated by AI.
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