4 July 2022 

Written by Veronica Hardenberg - Lecturer: School of Investment & Banking

Lately, people have taken to social media to express their ongoing disappointment in banks for removing ATMs from various areas.

In this digital age, payment gateway companies – such as PayPal, PayGate and PayU – facilitate online shopping. The use of payment platforms has also become more popular; for example, many informal traders now use Yoco. A local retailer is currently trialling an automated and cashless “no queues, no checkout, no waiting” concept store.

On the flip side, it is estimated that 23.5% of the population is unbanked, while R12 billion in cash is believed to be held outside banks. Many informal traders are yet to invest in payment providers and continue, rather, to trade in cash.

Is South Africa ready to be cashless?