For the first time ever, South Africa’s First National Bank (FNB) says the majority of its customers have turned to cashless methods for payment rather than cash during the last year.
According to a statement from FNB, monthly non-cash purchases by its customers in the consumer segment have surpassed cash withdrawals at its ATMs by R800 million during the last 12 months.
A press statement from the bank says "two years ago, FNB consumer segment customers withdrew R1.3 billion more in cash than the value of card purchases."
Across the industry card-based spend has been increasing at 38% per annum while ATM withdrawals have increased by 22% showing the more rapid growth of card and cashless transactions during the past 12 months, says FNB.
“Viewing the difference between ATM withdrawals and card transaction values give us a clear view of consumer trends,” says Irlon Terblanche, chief executive officer of FNB core banking solutions.
“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,” says Terblanche.
The bank also added that it expects to see a decline in the use of cash over the 2013 festive season with a further decline in cash usage becoming more obvious next year.
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