Many people still rely on cash every day - this can be in taxis, at informal vendors and in rural areas
The world is moving fast toward a cashless future. From digital wallets to tap-and-go payments, money is becoming more about clicks than coins. This is no different in South Africa, with more people making payments using their phones, smartwatches and cards.
However, the PayInc Cash Index revealed that cash is still in demand in the country, with many people still relying on it every day – this can be in taxis, at informal vendors and in rural areas.
The findings were for the second quarter of 2025 and were revealed earlier in the week. PayInc, previously known as BankservAfrica, is the country’s central payments platform that processes and connects digital transactions between banks and fintech platforms to make money move faster and more efficiently across the country.
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Cash is still in demand
Shergeran Naidoo, head of stakeholder engagements at PayInc, said levels are 3.7% lower than a year ago and cash supply has eased. PayInc’s reporting metrics indicate that the demand has remained steady, highlighting the resilience of notes and coins, particularly for lower-value transactions.
The PayInc Cash Index takes a look at the cash ecosystem’s structural shifts over the past years involving banks, non-banks and retailers. The index looks at cash supply by measuring cash inventories, supply to access points and implied demand.
“According to the South African Reserve Bank, notes and coins in circulation have levelled off since 2020,” read the index. “At R180 billion in 2024, in nominal terms, it equates to about 2.5% of GDP. However, a notable moderation is evident in real terms.”
Banks reduce their cash holdings
Many banks have reduced their ATM footprint. The index found that commercial banks have also reduced their cash holdings over the same period.
“While reflecting a gradual move away from cash usage, the data is also an indication of the efficiency improvements for cash demand management in the value chain,” said Kruger.
“Today, cash is accessible not only through banks and their ATMs, but also a growing network of non-bank providers such as independent ATM deployers, cash aggregators, retailers and merchants.”
She said this expansion reflects innovation and structural reform, not a decline in the importance of cash for banks or consumers.
“The supply indicator in the PayInc Cash Index tracks the supply of cash to banks and a limited number of non-bank actors across multiple access points, including branches, ATMs, and point-of-sale cashback,” added Kruger.
She highlighted that the data is reliable but incomplete, as not all non-bank activity is recorded in the current framework.
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A mystery to be solved
Kruger said it remains uncertain what happens to cash after it is withdrawn. “With more non-bank players now part of the ecosystem, the flow and velocity of cash are harder to track, and available data is incomplete.”
To better understand this, the PayInc Cash Index compares the total value of notes and coins in circulation with the cash held by the SARB and commercial banks.
She added that the difference, called ‘other cash’, represents money held by individuals and non-bank providers. “While this data doesn’t yet distinguish between the two groups, it offers a credible view of cash demand in the wider economy and will serve as a key demand indicator in the new PayInc Cash Index.”
ATM declines do not necessarily indicate reduced cash demand
She said the accessibility to cash is gradually being reshaped by the growing number of non-bank players providing cash services in an ecosystem formerly dominated by banks.
“Therefore, the decline in ATM transactions does not necessarily indicate a drop in cash demand. Instead, it reflects the broadening role of non-bank providers, such as retail stores offering cash access, driven by shifts in the broader cash supply chain.
“However, the growing adoption of PayShap and the sharp rise in EFT transactions, from 406.9 million in 2010 to 1.13 billion in 2024, reflect a clear shift from cash to digital payment solutions.
“The data shows that while cash retains a strong foothold in the economy, the ecosystem around it is modernising, improving efficiency and access. Yet, rising demand for digital payments continues to redefine the landscape.”
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