Cash loses ground as four major South African banks close ATMs
The age of withdrawing cash from corner ATMs is rapidly disappearing as South Africa’s four largest banks shift toward digital banking services.
South Africa’s four biggest banks, Standard Bank, FNB, Nedbank, and Absa, are rapidly shrinking their ATM networks as they shift focus to digital banking services.
Over the past five years, these banks have closed a total of 8,516 ATMs nationwide, signaling a clear move toward cashless banking.
More South Africans are adopting digital payments, attracted by convenience, security, and the rising costs of maintaining physical cash infrastructure.
Standard Bank led the way, reducing its ATM count from 9 321 in 2019 to 5 562 by the end of 2024—a cut of 3 759 machines.
Capitec Bucks the Trend
In contrast, Capitec is expanding its ATM network – adding 3 787 machines over the same period.
The bank says it remains committed to offering affordable and accessible cash services, even while digital adoption accelerates.
“We are actively increasing our branch and ATM footprint while our competitors are scaling back,” Capitec said in a statement.
Capitec’s strategy reflects the reality that, despite a strong digital shift, a significant portion of the population still relies on cash, particularly in underbanked or rural areas.
Consumer Habits Are Changing
A recent survey by Discovery Bank and Visa reveals that 67% of South African consumers use cash only a few times a month or not at all, underscoring the significant shift toward digital financial habits.
This trend mirrors the rise in e-commerce, mobile payments, and banking app usage, which have all grown rapidly in recent years—boosted further by the pandemic and ongoing fintech innovations.
While banks recognise safety issues and the challenges of managing cash, Capitec states it will continue providing cash access “for as long as it’s needed.”