Business

South Africa To Remain As A Cash Country

Automated teller machines (ATMs) require technical installation solutions to ensure that they are professionally handled and installed. ATM machines provide people will a convenient and quick way to access cash from their banks. It is common to find an ATM in stores and restaurants because these are places where consumers spend their cash.

In South Africa, people still prefer to use cash in spite of the growing popularity of mobile payment options and card payments. Even with the addition of biometric security and contactless technology, South Africa remains to be cash country. To support the preference for cash, banks in South Africa have added new features on the ATMs like wider support for cash deposits, stamped statement dispensation and self-service features.

New technologies are being tested by banks to enhance security in ATM transactions and minimize the risks of card skimming. These technologies include tap-and-PIN authentication and biometric security. Tap-and-PIN will allow users to withdraw cash and make transactions at the machine by tapping the contactless card on an NFC reader. However, this option is only available for FNB cardholders.

According to Absa Bank, they expect continuous growth in the volume of ATM transactions because existing services are being improved. During the last 5 years, cash throughput from ATMs has increased by more than 100%. It was also noted that non-cash transactions like stamped A4 transactions have also increased.

In 2017, about 90% of payments made by South Africans were in cash particularly for low value payments and low levels of financial inclusion. South Africans prefer cash because digital payments require the opening of an account. The system is quite complex and there is a high level of documentary compliance. Recent statistics from South African Reserve Banks show that cash payments in the South African market will continue to grow and consumers will make use of ATMs.

It is important to ensure best practice procedures in the technical installation solutions of ATMs. The machines must be protected in every step of the process from the time they are received in the high tech warehouse to transport and installation because ATMs will be the source of cash for many people.