Somewhere in the region of 70 per cent of free-to-use cash machines could close completely or begin charging fees to allow users to access money, as rising costs of running hit operators across the board.
Operator Notemachine warns that funding cuts may leave firms with 'no option' but to start charging customers to withdraw cash.
This means that over 37,000 free-to-use ATMs may disappear from UK streets completely in the not too distant future.
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The Mirror reports that Link, which runs the UK's network of ATMs, has written to operators telling them that it will not be increasing the interchange fee - which is paid to operators when a customer uses one of the hole in the wall devices. This currently sits at 26.5p for most machines, but 29.3p for those given 'protected' status.
These fees have became commonplace in recent years, despite rising operating costs, with the Bank of England continually raising interest rates - while operators have been forced to fork out more due to inflation and energy costs. Experts now warn that the only machines likely to survive are those attached to banks and supermarkets, as well as those already granted protected status.
Only 3,300 free-to-use machines are protected at the moment - which amounts to 6.3 per cent of Link's network. Since 2018, there has been a 10 per cent reduction in funding, and at the same time, the total number of free-to-use machines has dropped from 52,358 to about 40,400.
Notemachine say that firms are being either forced to pass on costs to customers or close them down completely. Philip Bowcock, of Notemachine, said: “The failure to increase funding has heaped further pressure on operators.”
A spokesman for Link said: “3,300 of these free machines in rural and less well-off areas receive a subsidy worth over £10million per annum from Link to ensure that the spread of free machines remains good. Link is committed to spending whatever is necessary to support this position.
“It is vital older people have free access to cash, especially in rural areas and towns where there are no banks.”
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