FINAL WORD
South Africa ’ s adoption of cashless consumer transactions
As more South African customers use bank cards for transactions , banks are reducing their costs of cash machines and focusing on enhancing digital payment infrastructures . This shift supports the broader goal of financial inclusion , ensuring that all South Africans can participate in the digital economy , explains Annelene Dippenaar at Shop2Shop .
In the heart of South Africa ’ s vibrant township economy , valued at an estimated R750 billion , a transformative shift is taking place . Small to medium-sized businesses are flourishing as the adoption of cashless transactions grows . Despite the widespread availability of banking services , cash remains dominant , and collaboration between private and public stakeholders is essential to address perceptions , drive down costs , and increase the uptake of digital payment solutions .
According to research by Statista , while eight out of ten South African adults have a bank account , 73 % of point-of-sale transactions are still conducted in cash , highlighting the need for a significant push towards digital payments . The reliance on cash is particularly evident in the bustling township economy , where more than 1.8 million informal traders operate .
This preference is driven by several factors : the inclusive nature of cash allows everyone to participate in the economy irrespective of financial status , while physical currency also offers immediacy and ease of use .
Digital payments can enhance safety by reducing the risks associated with cash while offering greater convenience through faster transactions and 24x7 accessibility . Beyond providing a layer of financial transparency for merchants , digital transactions and payment histories will now help these informal businesses build transactional profiles , making it easier for them to access loans and financial services .
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