Cash withdrawals from ATMS and through cashback facilities is declining.
New figures from the Banking and Payments Federation of Ireland (BPFI) show that the number fell by 7.1% last year to 82.2 million, compared to 2024.
The value of the withdrawals has also fallen, down by 4.2% to €12.2 billion.
At the same time, the BPFI's latest Payments Monitor shows that the popularity of contactless payments is on the rise.
The number increased by 6.8% last year, compared to 2024, while the value rose by 12.6%.
The report shows over 1.6 billion contactless point of sale (POS) payments, valued at over €30 billion, were made in shops, restaurants and other retail outlets in 2025.
The banking body said contactless payments accounted for 88.7% of all POS card payments in 2025.
A total of 62.4% of all the contactless payments were made using mobile wallets such as Apple Pay or Google Pay, rather than cards.
The Head of Payments at BPFI, Gillian Byrne, said the data highlights the continued popularity of contactless payments among Irish consumers.
"Notably, of the 298 contactless payments made per person in Ireland on Irish cards in 2025, 159 were made through mobile wallets, highlighting how smartphones are becoming the preferred payment method over physical cards for many Irish consumers," she said.
On the other hand, Ms Byrne said the figures show that while contactless payments activity continues to grow, "cash withdrawal activity, including ATMs and cashback in shops, has declined".
"This trend was reflected across the country with the value of cash withdrawn falling in every county except Donegal, where the value was unchanged," she added.
The BPFI Head of Payments said for every €1 in cash withdrawn in 2025, €2.46 was spent in contactless payments, up from €1.70 in 2023.
"While cash will continue to play an important role for consumers, the convenience and security of contactless and mobile wallet payments are likely driving the growth in their adoption among Irish consumers."
Despite the decline in cash withdrawals, measures have been put in place to ensure that people can continue to facilities to withdraw cash.
Last year, a new law that requires financial institutions to ensure that an ATM is located within 10km of the vast majority of homes and businesses came into force.
The 'access to cash' legislation guarantees there is access to cash in towns and villages nationwide.
Read more: Could cash become king again with new law and how will it work?
