South Africa is in the midst of a profound payment transformation, steadily moving away from its long-standing reliance on cash. This shift is no longer confined to supermarkets and shopping malls; it’s taking root in the very heart of its informal economy.
Recent data from banks and grassroots surveys paint a clear picture: the future of South African commerce is digital. A snap survey by Yebo Fresh of 2,769 spaza shops reveals that while cash is still described as “king,” the adoption of card payment devices like Flash, Kazang, and Yoco is now widespread. These devices are vital, not just for card sales, but as income generators through the sale of airtime, data, and electricity.
This trend is mirrored in the formal banking sector. First National Bank reported that in December 2024, nearly 9 out of every 10 transactions by its personal clients were digital. Echoing this, the Discovery Bank and Visa SpendTrend 25 report found that 67% of South Africans now use cash only a few times a month, or not at all.
Discovery Bank CEO Hylton Kallner notes a significant recent acceleration. “Cash is becoming less common as a payment method,” he stated, attributing the shift to the “greater convenience, better incentives and increased security” of digital options. A key change in mindset is also driving this: merchants are increasingly aware of the hidden safety and logistical costs of handling physical cash, making digital payments more attractive.
However, the revolution is not yet complete. Cash remains stubbornly dominant for small, impulse purchases under R100, where it is still perceived as more immediate and convenient. The South African Reserve Bank confirms that physical currency isn’t disappearing; R171 billion in banknotes remains in circulation, with nearly half of all adults still withdrawing their money as soon as it’s deposited.
But the tools for a cashless future are now firmly in place. The rise of affordable point-of-sale systems for small merchants, low-cost bank accounts, and initiatives like PayShap are breaking down the final barriers. PayShap, the country’s real-time payment system, has exploded in popularity since its 2023 launch. From just 36,631 transactions in its first month, it has grown to a staggering 44.8 million monthly payments by August 2025, having processed over R403 billion in total.
The story is no longer if South Africa will transition to a digital-first economy, but how quickly. The foundation is laid, from the high-tech boardroom to the humble spaza shop, and the momentum is undeniable.
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