New figures released by Link have revealed that Scotland has seen the sharpest drop in cash machine us in the UK. The decline is thought to be linked to tougher COVID-19 restrictions reducing the need for cash.

According to Link, the average Scot took out £1,838 in cash in 2020, that is almost £900 less than in 2019

It has led to concerns that, as fewer people use ATMS, they become less profitable and at risk of either closure or becoming charging machines.

Across the UK as a whole, adults each withdrew around £660 less than in 2020 than in 2019 but the average withdrawal value was £78 in 2020 compared to £67 in 2019 as when they did visit an ATM, consumers took out more.

A study by Which? has warned of a cash network in danger of crumbling, saying that 30% of Scots reported being unable to pay with cash at least once when trying to buy something since March, when coronavirus restrictions were first introduced.

Former financial ombudsman Natalie Ceeney, author of the Access to Cash review, said the government needs to legislate to protect cash now.

Despite lockdown, some £142m a week was being withdrawn from Scottish cash machines in 2020 – although that is a £76m drop on 2019.

Across the UK the new report found adults visited ATMS 12 times less in 2020 than they did in 2019.

Ms Ceeney said: “We know people are using less cash, but the level of cash being used through the pandemic may surprise people who have moved entirely to digital or card payments. There are still millions of people for whom digital payments don’t yet work.

“Cash is still a core part of our national resilience.

“What happens if payment systems go down and the nearest ATM is a few miles away? We are seeing ATMS and bank branches close, as our infrastructure collapses, before we’ve answered these critical questions . We need government to legislate to protect cash now – to keep their promise – before it’s too late. Once the cash infrastructure has gone, it will be impossible to put back.’

According to Link, ATM numbers declined with many ATMs temporarily closing for social distancing purposes or in premises such as cinemas and pubs that are closed due to restrictions.

Free to use machines fell from 45,300 in 2019 to 41,700 in 2020. Pay to use machines also declined from 15,300 to 12,600.

John Howells, CEO of Link, added: “The Coronavirus has changed our relationship with cash. More people are now confident and happy to shop online or use contactless payments. Our research shows 75% say they will use less cash going forward.

“However, the sharp decline in ATM use brings significant problems. Cash machines are by the far the most popular way of accessing cash, yet a 37% year on year drop in transactions places enormous strain on the cash infrastructure. As our data shows, despite the rapid decline in cash, millions of people still rely on it and aren’t able to go digital. The good news is that the Government has said it will be bringing forward legislation to protect access to cash, but this is needed urgently.”