"Sorry, We Can't Accept Even a 50,000-Won Bill"... Bank Customer Caught Off Guard as Cashless Era Spreads Everywhere

Fewer ATMs and bank branches...Concerns over access for older adults

The role of banks as places where people go to deposit cash is changing. As the cashless trend, which has spread to buses and cafes, reaches bank branches, more locations are no longer handling cash in person.

An ATM at Shinhan Bank’s Nangok branch in Gwanak-gu, Seoul, featuring a “customized ATM service for senior customers.” Yonhap News Agency

According to the financial sector on November 4, the offline financial network capable of handling cash is shrinking. At the end of June this year, there were 24,711 automated teller machines (ATMs) nationwide, a decline of 4,610 in less than four years. Over the same period, commercial banks also closed 276 branches.

KB Kookmin Bank opened a digital-focused branch based on cashless and paperless services in Gimpo, Gyeonggi Province, in 2019. It added four locations this year, bringing the total to six. iM Bank opened a cashless branch in Wonju, Gangwon Province, in 2024, while BNK Busan Bank opened cashless branches in Seoul's Guro-gu and Seongdong-gu districts last year.

Contactless currency exchange and travel cards go mainstream...Less need for airport exchange counters

The reduction in cash-handling services by banks is also clearly visible at airports. Demand for exchanging cash in person at airports has declined as contactless currency exchange and travel cards for overseas payments have become commonplace. Bids to operate a bank branch in the international terminal of Gimhae Airport have failed several times. Although the annual rent, initially set at around 7.6 billion won, was lowered, interest from bidders remained low. Ultimately, on October 30, the existing operator, BNK Busan Bank, signed a negotiated contract for about 5.9 billion won a year.

A crowded bank counter. Yonhap News

This is largely attributed to changes in how people exchange currency, even as the number of airport users grows. More people are exchanging money in advance through mobile apps or paying directly by card overseas without exchanging cash, reducing the need for airport exchange counters. The cumulative amount exchanged through Hana Financial Group's Travelog service surpassed 8 trillion won at the end of October, while the number of Shinhan Financial Group's SOL Travel cards issued topped 3 million.

Buses and cafes have already gone cashless

Cashless services have taken hold in many parts of daily life even before they did at banks. The Seoul Metropolitan Government began piloting cashless buses in 2021, and as of April last year, about 40% of Seoul's city buses did not accept cash. In April this year, 180 of the 394 routes in Seoul operated without cash.

Last year, cash fare revenue accounted for just 0.24% of total revenue for Seoul's city buses. Meanwhile, the costs of operating and managing cash boxes were found to exceed cash revenue, providing grounds for expanding cashless bus services. Cashless stores have also spread among cafes. Starbucks began introducing cashless stores at some locations in 2018 and has gradually expanded the program.

Older adults and low-income people still rely on cash

On March 1, 2023, the Seoul Metropolitan Government began operating cashless buses on 108 routes with 1,876 buses, up from 18 routes and 436 buses. The photo shows an older passenger looking at a bus. Yonhap News Agency.

The problem is that not everyone can keep pace with the shift to cashless services. According to the Bank of Korea's "Comprehensive Survey on the Use of Currency by Economic Agents in 2025," individuals spent an average of 324,000 won in cash per month, accounting for 17.4% of their total spending.

Cash accounted for around 14% of spending among people in their 20s and 30s, but the figure reached 32.4% among those aged 70 and older. Cash made up 59.4% of spending among people with monthly incomes below 1 million won, far higher than the 15.1% among those earning 9 million won or more per month. There was also considerable opposition to a cashless society. Some 45.8% of respondents said they opposed the introduction of a cashless society, while 59.1% said the right to choose to use cash should be guaranteed by law.

Examples of inconvenience are also emerging on the ground. Critics warn that going cashless could create a new barrier for people unfamiliar with digital payments, as in cases where another passenger pays the fare for an older person who has only cash and is unable to board a cashless bus.

There are concerns that access to financial services could decline, especially for older adults who are not accustomed to using smartphones or mobile financial services and low-income people who rely heavily on cash, as they also face a decline in bank branches and ATMs. As the cashless trend spreads to bank branches, a key challenge will be how to improve digital convenience while ensuring that consumers who need cash retain the choice to use it.

This content was produced with the assistance of AI translation services.