Cash is still ‘king’ in South Africa – but how long will it stay that way?

0 Cash remains essential in South Africa as the Reserve Bank plans shared ATMs, cheaper withdrawals and better access. Image: Mariana Balt Home » Cash is still ‘king’ in South Africa – but how long will it stay that way?

Cash remains essential in South Africa as the Reserve Bank plans shared ATMs, cheaper withdrawals and better access.

0 Cash remains essential in South Africa as the Reserve Bank plans shared ATMs, cheaper withdrawals and better access. Image: Mariana Balt Cash remains king for millions of South Africans, even as digital payments gain ground. 

According to the South African Reserve Bank (SARB), it accounts for approximately 56% of consumer transactions by volume. From minibus taxi fares to purchases at informal traders, physical money remains essential to everyday life.

However, accessing cash can cost consumers money, time and unnecessary travel. 

The Reserve Bank now plans major changes to the country’s ATM network. These reforms could reshape how people withdraw money and where they find it.

Cash offers practical advantages that electronic payments cannot always match. 

People can pay without smartphones, internet access or electronic payment terminals. Cash also helps people manage spending because they can track the physical money remaining in their wallets. 

Informal traders and some transport operators still depend heavily on such transactions.

However, cash has significant drawbacks in 2026. Consumers face withdrawal fees, transport expenses and queues when accessing their money. 

Carrying cash also exposes people to theft, while businesses face security and handling costs. The SARB’s 2026 Cost of Cash Research Study estimates the annual economic cost at approximately R88.5 billion.

These expenses affect households across income groups, but poorer communities often face greater barriers. Rural residents may travel considerable distances to reach ATMs or banking facilities. Some also pay substantially more to access money than consumers in wealthier urban areas.

Digital payments offer convenience, but they cannot replace cash everywhere. 

Network outages, limited infrastructure and the cost of accessing digital services can leave people reliant on physical money.

The Reserve Bank wants to establish a national cash-management company by March 2027. The proposed utility would help coordinate distribution and reduce duplicated infrastructure.

The bank also plans to consolidate the country’s approximately 109 cash centres into a network of around 50.

Another significant proposal involves white-label ATMs. These neutral-branded machines would allow customers from different banks to access shared infrastructure. 

The Reserve Bank is discussing the model with commercial banks, with rollout planned from 2028.

According to a Moneyweb report on the proposal, these machines should support balance enquiries, withdrawals and deposits. Some withdrawals could also become free, depending on the final arrangements.

The changes aim to improve access while reducing the costs associated with maintaining separate banking networks. 

Better ATM placement could also bring cash services closer to underserved communities.

The future points towards a mixed payment system rather than an entirely cashless economy. 

The Reserve Bank wants to expand digital payments while preserving access to physical money. Its Cash Smart Strategy specifically identifies shared ATMs as a way to improve affordability and access.

For consumers, shared machines could mean fewer withdrawal charges and more convenient access. However, the benefits will depend on implementation, reliable cash supplies and transparent fees. 

Security and dependable service will remain essential.

South Africa’s ATMs therefore face transformation rather than extinction. 

Cash may gradually lose ground as digital payments expand, but millions still need physical money. 

The real test will be whether these reforms make cash cheaper and easier to access. 

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