According to the South African Reserve Bank’s Payments Study Report, published in August, South Africans use cash most often as a payment method (87%), regardless of what they buy.
Only 15% use cardless payments and 8% opt for credit card, while debit card payments are ubiquitous at 75%. Cash makes up 56% of the number of payments across all categories, valued for its convenience (31%), ability to reduce bank charges (18%) and as a primary form of income for many (11%).
As South African banks reduce the number of ATMs available across the country, concerns are rising about the impact this will have on convenient access to cash for millions of citizens.
According to recent media reports, the number of bank ATMs has reduced by more than 4 000 over the past four years, a trend that could undermine financial accessibility for a large portion of the population.
Wayne Abramson, CEO of ATM Solutions, says ensuring access to cash is crucial for sustaining the South African economy, where cash still plays an indispensable role.
“Cash remains a meaningful part of the payments ecosystem, with many South Africans relying on it for everyday transactions and bill payments. While digital transactions are on the rise, the demand for cash and accessible, conveniently located ATMs is strong, and at 55% ATMs remain the dominant point to access cash,” he says.
Independent ATM operators like ATM Solutions are stepping up to fill the gap, ensuring that cash remains within reach for underserved communities. A number of major retailers also offer cash-back at the point of sale. This is part of a broader effort to support the Reserve Bank’s mandate to enhance financial accessibility and inclusion.
More affordable
The FinScope Consumer South Africa 2023 Survey further highlights that a significant portion of the population — 94% — withdraws cash monthly, with 34% withdrawing all deposited funds at once. For these individuals, cash offers simplicity, reliability and a tangible sense of security. Concerns about high banking fees also contribute to the preference for cash.
Cash withdrawals have become more affordable, with banks such as Standard Bank and Capitec no longer charging their clients a Saswitch network fee, so customers aren’t paying extra to withdraw from other banks’ ATMs. According to Standard Bank, this initiative saved their customers R245-million in penalty fees in 2023.
ATM Solutions, a Paycorp group company, plays a critical role in this ecosystem by providing more than 4 500 Cash Express ATMs in underserved and key rural, urban, retail and hospitality locations across South Africa. ATM users can withdraw cash from local and international bank accounts, Sassa cards, or make cardless withdrawals from mobile wallets such as Vodapay and MTN MoMo and crypto wallets using the CryptoExpress app. By bridging the gap between digital wallets and cash, ATM Solutions provides consumers with more ways to transact, adapting to the evolving nature of the payment landscape.
Many of these ATMs are strategically placed in underserved locations to provide a much-needed access to Sassa recipients,” says Abramson. “Even though many South Africans are paid or receive income digitally, they often withdraw their funds immediately so they can transact within their communities with ease.”
At the heart of this issue is consumer choice. “We’re not just advocates for cash,” Abramson says. “We’re advocates for our customers. Our goal is to empower them with the tools they need to transact in the way that best suits their lives, whether it’s through cash, digital platforms or a combination of both.”
The focus on what consumers want underscores the critical role independent ATM and payment providers like ATM Solutions play in keeping South Africa’s cash-driven economy alive and accessible for all.
About Paycorp
ATM Solutions is the ATM- and cash-related pillar of Paycorp, which is a leading provider of end-to-end global payment solutions. Paycorp also provides third-party transaction processing and offers a range of value-added services including cardless, crypto to cash, and best-in-class dynamic currency conversion and FX-related services. SMEs also benefit from frictionless embedded business funding in both South Africa and the UK, where Paycorp leverages transaction data to determine preapproved working capital. Paycorp has been a pioneer of cash and digital payment innovation in South Africa for more than 25 years and has evolved from an ATM company to a global payments company without sacrificing the customer’s need for choice.
Established in 1999, Paycorp has a quarter of a century of expertise in payments innovation with operations globally. We are a trusted and strategic long-term payments partner to industry players including banks, card associations, payments bodies and regulators, and we boast noteworthy client portfolios in multiple markets. Paycorp currently operates in seven countries and employs more than 450 staff, facilitating seamless transactions for millions of people.
For more information visit www.paycorp.co.za, connect on LinkedIn, or learn more about Capital Express, Recap Global and CryptoExpress.
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