Business / Personal Finance

Citizen Reporter
Reporter
2 minute read
18 Oct 2021
3:12 pm

Cash is king: South Africa’s poor slow to take up digital payments

Citizen Reporter

Digital payment systems have mainly benefited higher-income earners, who appreciate the convenience of cashless transactions.

Picture: iStock

One-in-five South Africans don’t have bank accounts

Digital payment systems have mainly benefited the country’s higher-income and financially astute earners, who appreciate the convenience of cashless transactions and have ready access to digital payments infrastructure.

Why do many South Africans prefer cash?

According to FinMark Trust research, at least one in five South Africans do not have bank accounts, and a further one-third prefer to withdraw all their money in cash than keep it in the bank account.

This trend is more prevalent among social grant recipients. South African Social Security Agency (Sassa) statistics show that 95% of beneficiary funds are withdrawn within seven days of being deposited.

The cost of cash

Compiled by Narissa Subramoney

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