Image credits: flyerwerk, Pixabay
News Article

Cash Withdrawals Drop 49 Percent Due to COVID-19

By Andrea Villar | Wed, 06/17/2020 - 11:27

The crisis generated by COVID-19 forced people to change their habits to remain home and avoid contagion. People who had never ordered anything online were forced to venture into e-commerce platforms, which meant a reduction in the use of cash. In Mexico, cash use and withdrawals have gone down considerably, a Fintonic study revealed.

According to the report “Cash Disposals During the COVID-19 Pandemic,” in April 2020, Mexicans withdrew 49 percent less cash compared to the same month in 2019, while in May 2020, they withdrew 56 percent less than a year earlier.

The study also found that the use of ATMs in April and May decreased by 30 and 35 percent, respectively. Likewise, Mexicans' spending was also reduced: the average spending per person in cash during May 2020 was MX$9,900 (US$442.3), a fall of 32.19 percent compared to 2019. In April, spending was MX$10,100 (US$451.2), which represented a 26.81 percent reduction.

“Cash withdrawals fell due to three main factors. If people do not leave their homes and spend less, they need less cash. At the same time, online banking and personal finance apps have become part of the new normal for Mexicans. Credit and debit cards have benefited, not only in the online world, simply because people are trying to limit contact with contaminated people or objects," said Fintonic Country Manager José Gabriel Carrasco in a statement.

This month, the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF), reported that just over 5.5 million debit card users go to one of the 58,991 ATMs of the national banking network daily to make a cash withdrawal. Meanwhile, 12.6 million users purchase goods or services through the 1.358 million point-of-sale terminals located in 763,923 shops or companies across the country.

In early June, Fintonic published the study “Consumption in Food Delivery Apps During Covid-19 in Mexico,” where it revealed that in March, restaurant consumption through Rappi rose 10.98 percent, while Uber Eats saw growth of 6.24 percent.

The data used in this article was sourced from:  
Fintonic, CONDUSEF
Photo by:   flyerwerk, Pixabay
Andrea Villar Andrea Villar Journalist and Industry Analyst