The South African Reserve Bank has published a study estimating that cash costs South Africa ZAR 88.5 billion annually, based on 2024 data. Direct consumer costs, including withdrawal and deposit fees and cash specific travel expenses, account for ZAR 43.5 billion, while indirect costs such as travel and transaction time, crime losses, forgone interest and retailer cost pass through total ZAR 44.9 billion. Cash remains widely used, representing about 56% of consumer transactions by volume. The formal cash value chain incurs ZAR 27.1 billion in annual operational costs, comprising ZAR 1.2 billion for essential industry services, ZAR 21.6 billion for banking services and ZAR 4.3 billion for formal retailers and informal traders. This amount is embedded within, rather than additional to, the broader ZAR 88.5 billion estimate. Cash access is cheapest through retailer cash back at point of sale at ZAR 0.12 per ZAR 100 transacted, compared with ZAR 0.68 for ATMs and ZAR 1.53 for bank branches. Lower income consumers bear the greatest relative burden, with those earning up to ZAR 1,250 a month spending about 5% of income on cash related costs, compared with 1% for those earning more than ZAR 20,000. The study recommends expanding retailer cash back and ATM access in underserved areas, increasing shared infrastructure and cash recycling, rationalizing cash in transit operations and considering changes such as phasing out low denomination coins or introducing higher denomination banknotes. It also calls for a comparative study of the full costs of cash and major electronic payment methods.
2026-09-15South African Reserve Bank
South African Reserve Bank estimates annual economic cost of cash at ZAR 88.5 billion
The South African Reserve Bank estimates that cash costs South Africa ZAR 88.5 billion annually, split almost evenly between direct consumer expenses and indirect costs such as time and crime. Formal cash value chain costs total ZAR 27.1 billion and are embedded in the broader estimate, while retailer cash back is substantially cheaper than ATM or branch access. The study recommends expanding lower cost cash access, shared infrastructure and cash recycling while preserving financial inclusion.