The payments made by consumers through non-cash modes have surpassed the cash withdrawals from ATMs by R800m ($78.4m) in South Africa, according to First National Bank (FNB) of South Africa.
Non-cash mode of payments included cheque, debit card, credit card, EFT, GeoPay, electronic and digital channels, where no fees are levied upon transactions.
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According to FNB, in 2011, its consumer segment customers withdrew R1.3bn ($127.4m) more in cash than card purchases, however in the last 12 months, card-based spend increased at 38% per annum while ATM withdrawals increased by 22%.
FNB Core Banking Solutions CEO Irlon Terblanche was quoted by BusinessTech as saying that viewing the difference between ATM withdrawals and card transaction values give them a clear view of consumer trends.
"Customers are also making much smaller value purchases via a card. Some customers are making purchases for R30, or even less. Consumers are showing a preference for cards even as FNB offers free ATM withdrawals," Terblanche added.
The trend of using card over cash is set to accelerate in the future, according to Terblanche.
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By GlobalData
