IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v19y2009i10p841-851.html
   My bibliography  Save this article

ATM networks and cash usage

Author

Listed:
  • Heli Snellman
  • Matti Viren

Abstract

This article deals with the issue of how the market structure in banking affects the choice of the means of payment. In particular, the demand for cash is analysed from this point of view. The analysis is based on a simple spatial transactions model in which banks' optimization problem is solved. The solution quite clearly shows that monopoly banks have an incentive to restrict the number of ATMs to a minimum. More generally, the number of ATMs depends on competitiveness in the banking sector. The predictions of the theoretical analysis are tested using a panel data from 20 Organization for Economic Co-operation and Development (OECD) countries for the period 1988 to 2003. Empirical analysis shows that there is a strong and robust relationship between the number of ATM networks and the number of ATMs (in relation to populations). Moreover, it can be shown that the demand for cash depends on the number of ATMs, ATM networks and the popularity of other means of payment. Thus, the use of cash can be pretty well explained in the transaction demand framework assuming that the market structure and technical environment is properly controlled.

Suggested Citation

  • Heli Snellman & Matti Viren, 2009. "ATM networks and cash usage," Applied Financial Economics, Taylor & Francis Journals, vol. 19(10), pages 841-851.
    • Handle: RePEc:taf:apfiec:v:19:y:2009:i:10:p:841-851
    DOI: 10.1080/09603100701675548
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09603100701675548
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09603100701675548?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:zbw:bofism:2006_038 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Henryk Gurgul & Marcin Suder, 2013. "Modeling of withdrawals from selected ATMs of the "Euronet" network," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 13, pages 65-82.
    2. Gurgul Henryk & Suder Marcin, 2016. "Calendar and Seasonal Effects on the Size of Withdrawals from Atms Managed By Euronet," Statistics in Transition New Series, Statistics Poland, vol. 17(4), pages 691-722, December.
    3. Łukasz Goczek & Bartosz Witkowski, 2016. "Determinants of card payments," Applied Economics, Taylor & Francis Journals, vol. 48(16), pages 1530-1543, April.
    4. Ágoston, Kolos Cs. & Benedek, Gábor & Gilányi, Zsolt, 2016. "Pareto improvement and joint cash management optimisation for banks and cash-in-transit firms," European Journal of Operational Research, Elsevier, vol. 254(3), pages 1074-1082.
    5. Alexander Lubis & Constantinos Alexiou & Joseph G. Nellis, 2019. "Gauging the Impact of Payment System Innovations on Financial Intermediation: Novel Empirical Evidence from Indonesia," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 18(3), pages 290-338, December.
    6. Magnac, Thierry, 2017. "ATM foreign fees and cash withdrawals," Journal of Banking & Finance, Elsevier, vol. 78(C), pages 117-129.
    7. David, Bounie & Abel, François & Patrick, Waelbroeck, 2016. "Debit card and demand for cash," Journal of Banking & Finance, Elsevier, vol. 73(C), pages 55-66.
    8. Henryk Gurgul & Marcin Suder, 2013. "The Properties of ATMs Development Stages - an Empirical Analysis," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 14(3), pages 443-466, September.
    9. Yulia Titova & Delia Cornea & Sébastien Lemeunier, 2021. "What Factors Keep Cash Alive in the European Union?," De Economist, Springer, vol. 169(3), pages 291-317, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:19:y:2009:i:10:p:841-851. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.