Innovation
What's the future hold for ATMs in 2026?
When looking at where ATMs are headed in 2026, it's important to take a holistic approach that takes into account hardware, software, peripherals, cash management and AI.
January 20, 2026 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator
We are now firmly in 2026, and with it comes many opportunities for ATMs along with challenges. Although cash usage has plateaued, expenses surrounding cash management continue to rise. In addition, the potential of AI has yet to be fully realized.
When looking at where ATMs are headed in 2026, it's important to take a holistic approach that takes into account hardware, software, peripherals, cash management and AI.
ATM Marketplace reached out to Michele Riley, VP of global software and services delivery for Diebold Nixdorf and Jodi Neiding, VP of Americas business portfolio at Diebold Nixdorf for an email interview on what the future holds for ATMs in 2026.
Q. What advances in cash management do you expect to see in 2026?
Riley: We are moving past simple cash dispensing into an era of closed cash ecosystems. The big advancement for 2026 isn't just the device — it's the data connecting it. We expect to see a massive uptick in automated cash recycling where the ATM effectively becomes a vault, recycling deposited cash for future withdrawals. This drastically reduces cash-in-transit (CIT) visits and carbon footprints. In 2026, cash management will be less about moving money physically and more about optimizing it digitally to lower operational costs.
Q. What about AI in ATMs?
Riley:Meaningful AI implementation in ATMs isn't just about a chatbot on a screen; it's about predictive maintenance to ensure always-on availability. In 2026, the most impactful application of AI will be 'self-healing' machines. We are already using AI-driven data engines to predict a jam or a part failure before it happens, dispatching a technician with the exact part needed or fixing the problem before it occurs. For the consumer, AI will mean hyper-personalization — ATMs that remember your preferences and stage your usual transaction before you even touch the screen.
Q. Will we see a big increase in ITMs in 2026? Why or why not?
Riley:Yes, but the conversation is shifting from just 'ITMs' to holistic 'Branch Automation.' As FIs continue to optimize their branch footprints, the ITM serves as the bridge that enables them to maintain a physical presence in rural or lower-volume areas without full staffing. In 2026, the primary driver for ITM adoption will be not only transaction convenience but also the ability to offer advisory services that continually reassess and evolve strategies to ensure optimal efficiency. Financial institutions are deploying ITMs so their staff can stop counting cash and start having high-value conversations with customers. It's about efficiency, fueling relationship banking.
Q. What will the biggest hardware innovation be in 2026?
Neiding: The future of self-service is unified, intelligent and inclusive. Today's financial institutions are becoming increasingly digital, where physical and digital channels need to coexist seamlessly. Modern self-service devices serve as the backbone of this hybrid model, merging teller, ATM and cash recycler functions through shared architecture and unified management. In 2026, you will experience next-generation technology like Diebold Nixdorf's new 300 cash dispenser family that creates a harmonized ecosystem where every touchpoint, whether in-branch, off-site, or digital, is driven by consistent data, security and user experience.
This advanced technology offers high availability, security and reliability. It is equipped with enhanced security features like an AI-driven anti-jackpotting solution and designs that are prepared for Post-Quantum Computing (PQC), safeguarding against potential future threats. This cutting-edge technology is more sustainable, consuming less power and using eco-friendly materials, while offering scalability and flexibility suitable for diverse deployment environments, from high-traffic urban branches to compact locations.
Q. What about software?
Riley:The biggest software innovation in 2026 will be using the software to drive better client experience and operational efficiencies across the entire ecosystem — from digital to physical.
Q. What about peripherals?
Neiding: We are seeing the sunset of the magnetic stripe and the rise of the 'consumer-friendly peripherals.' In 2026, we expect a rise in contactless technology and cardless ATMs. The adoption of 'tap' functionality or solutions that utilize QR codes and one-time passwords through mobile apps enhances security by mitigating the risk of card skimming while also improving efficiency with faster transactions.
Additionally, we foresee a surge in biometric authentication as part of financial institutions' multi-factor authentication (MFA) strategy. The use of fingerprint and facial recognition scanners simplifies the consumer journey while enhancing security.
Q: What do you see as the biggest security threats going into 2026 for ATMs?
Riley:The threat landscape is moving from brute force to 'logical' attacks. While physical jackpotting remains a concern, the scary frontier for 2026 is AI-driven fraud — specifically, deepfakes and synthetic identities attempting to bypass biometric authentication. Additionally, with the PCI PTS 5 hardware standard set to expire in April 2027 (or over the next year), legacy fleets will become prime targets for malicious actors seeking vulnerabilities. The defense going forward is based on a 'Zero Trust' architecture, where hardware and software continuously validate each other.
About Bradley Cooper
Included In This Story
Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
Related Media
Subscribe
Get the latest news and resources from ATM Marketplace.
