South African banks reduce cash infrastructure amid digital shift

South African banks are significantly reducing their physical cash infrastructure as consumer behavior shifts toward digital payments and self-service channels. Major institutions are remodeling their access points to reflect a decline in traditional branch and ATM usage.

Standard Bank is accelerating a transition toward cashless branches, with plans to move further in 2026. The bank noted that while cash usage has dropped in many areas, demand for digital banking and advisory services has risen. Similarly, Absa is expanding its cashless branch network, increasing the number of cashless locations from 122 to 215, with a long-term target of 456. Absa reported that over 90 percent of its retail customers now use self-service channels for routine transactions.

Despite the digital shift, the South African Reserve Bank (SARB) maintains that the country is unlikely to become entirely cashless. The central bank highlighted that cash remains the most accessible and trusted payment method for millions of citizens, particularly those in rural areas, informal markets, and lower-income households. The SARB also noted the high annual cost of cash, estimated at approximately R90 billion, which includes transaction fees, distribution, and crime-related losses.