South Africans saying goodbye to cash
South Africans are steadily moving away from cash, increasingly preferring digital payments where they can.
This shift is being driven by convenience, choice, and the rise of omnichannel shopping experiences.
This is according to Jason Sive, CEO of Mobicred and RCS Digital Executive, who said South Africa’s digital economy is set to see exponential growth.
He also added that the country is well-positioned to become a leader in cashless retail due to a combination of widespread smartphone usage, fast-moving fintech innovation, and an expanding e-commerce ecosystem.
This shift is already reflected in consumer behaviour. Discovery Bank and Visa’s latest SpendTrend25 report shows that 67% of surveyed South Africans use cash only a few times a month or not at all.
80% say they prefer to use cards or digital payments whenever possible.
“While many people still use cash for a myriad of reasons, largely out of habit, the prevalence of cash is losing its appeal,” the report said.
The respondents noted that digital payments offer greater convenience, better rewards, and increased security, prompting more South Africans to leave their physical wallets behind in favour of digital ones.
Sive noted that the shift is no longer just a trend but a strategic opportunity for economic inclusion and growth.
“Credit providers, retailers and fintech innovators must accelerate the rollout of cashless payment options to deliver the frictionless customer experience that consumers expect,” he said.
The data shows a growing confidence in digital payments even for higher-value transactions.
According to SpendTrend25, 93% of South Africans preferred digital channels for purchases between R100 and R3,000.
99% opted for digital payments for transactions above R3,000. Cash was only used for smaller, everyday purchases of under R100.
Rising demand for digital experiences
Standard Bank has also reported a notable shift in customer behaviour. Since 2019, it has seen a significant drop in cash withdrawals and deposits, largely due to more people using digital banking services.
The bank’s app alone has experienced a 200% increase in transaction volumes, while personal customers’ cash deposits have fallen by 83% over the past five years.
The trend of going cashless is also evident in the gradual decline in the number of bank ATM across South Africa.
A recent assessment by MyBroadband showed that the number of ATMs operated by the Big Four banks dropped by over 8,000 over the last five years.
Standard Bank’s total number of ATMs dropped by 3,759 to 5,562, Absa’s by 3,518 to 5,138, FNB’s by 1,010 to 4,770 and Nedbank’s by 58 to 4,199.
The data showed that Capitec is the only large bank growing its ATM network, increasing from 5,011 in 2019 to 8,798 in the latest figures.
However, Capitec is an exception, expanding its ATM network across South Africa, while its competitors continue to cut back.
As Discovery Bank’s report highlighted, a large base of lower-income individuals still rely on cash for transactions more than other consumers.
Because of this, outgoing Capitec CEO Gerrie Fourie said that the bank plans to add 800 new ATMs across South Africa.
However, even as the bank expands its physical network, Fourie said that the bank prefers that its customer base move away from cash.
A shift to digital payments is seen as more secure for the customer, decreasing the chances of fraud.
He added that using cards and digital payments also gives Capitec more data on its customers’ spending habits, which allows the bank to monitor usage patterns and inform research and development.
A shift from cash to digital payments has already seen these transactions decline in number, but the transaction values are now far higher.
Other data reports show that cash remains king in South Africa, with the acknowledgement that the landscape is changing.
Loading ...