According to The South African Reserve Bank (SARB) Payments Study Report released in August 2024, 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 cards, 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, 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 that 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 continues.

Independent ATM operators, such as 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 point-of-sale (POS). This is part of a broader effort to support the South African Reserve Bank’s mandate to enhance financial accessibility and inclusion. 

Wayne Abramson, CEO at ATM Solutions

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 bank ATMs. According to Standard Bank, this initiative saved their customers R245m in penalty fees in 2023. 

ATM Solutions, a Paycorp group company, plays a critical role in this ecosystem by providing over 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 under-served locations to provide 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 continues, "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 such as ATM Solutions play in keeping South Africa's cash-driven economy alive and accessible for all.
 

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