Digital Payments South African are increasingly moving away from using cash, embracing Digital Payments South Africa for everyday transactions. This shift is gaining momentum due to convenience, security, and the rise of e-commerce across the country.
According to Jason Sive, CEO of Mobicred and RCS Digital Executive, the digital economy in South Africa is on track to grow rapidly. He believes South Africa is well-positioned to lead in the move towards a cashless retail environment, thanks to widespread smartphone usage, fintech innovation, and a growing online shopping culture.
Recent data from the Discovery Bank and Visa SpendTrend25 report shows that 67% of South Africans use cash only a few times a month—or not at all. Furthermore, 80% prefer digital or card payments whenever possible.
While cash is still used for smaller purchases, its popularity is quickly declining. Digital payments are becoming the go-to method for most South Africans due to the convenience, rewards, and better security they offer.
Jason Sive emphasized that this change is more than just a trend—it is a strategic opportunity to expand economic inclusion and growth in the country. He encouraged credit providers, retailers, and fintech companies to boost the rollout of cashless payment solutions to meet consumer expectations for fast and easy transactions.
Digital Payments South Africa Gaining Trust Across All Spending Levels
The SpendTrend25 report also revealed that:
- 93% of people prefer digital channels for purchases between R100 and R3,000
- 99% opt for Digital Payments South Africa for transactions above R3,000
- Cash is mostly used for transactions under R100
This data indicates growing trust in Digital Payments South Africa, even for high-value purchases.
Banks Respond to the Digital Shift
Major banks in South Africa are witnessing similar changes. Standard Bank reported a significant drop in cash withdrawals and deposits since 2019. Its mobile app alone has experienced a 200% increase in transaction volumes, while personal cash deposits have dropped by 83% over the last five years.
The declining use of ATMs supports this trend. A MyBroadband assessment showed that ATM numbers across South Africa have reduced sharply:
- Standard Bank: down by 3,759 ATMs
- Absa: down by 3,518 ATMs
- FNB: down by 1,010 ATMs
- Nedbank: down by 58 ATMs
Capitec is the only major bank growing its ATM network, increasing from 5,011 in 2019 to 8,798 today. However, even Capitec encourages customers to move toward Digital Payments South Africa, viewing it as a safer and more data-driven method. The bank plans to add 800 more ATMs, but continues to promote card and app-based payments to reduce cash dependency.
The Future is Cashless
As South Africans continue to adopt digital tools and fintech services, the reliance on physical cash is fading. The rise in mobile wallets, contactless cards, and secure online banking is helping drive the transformation.
While cash may still play a role for lower-income groups, especially in rural areas, the overall landscape is evolving quickly. Businesses, banks, and payment providers are now focusing on creating frictionless digital experiences that meet the growing demand for secure and convenient transactions.
Also Read: Samsung’s 2025 TV Line-Up Launches in South Africa: Neo QLED 8K & OLED Marvels Unveiled
1 thought on “Turning Away from Cash as Digital Payments South African Take Over”