South Africa’s banking sector is undergoing a major shift as some financial institutions scale back their ATM networks, while others expand their cash services to meet continued demand.
Among the country’s major traditional banks, three have reduced their ATM footprints since 2023. Nedbank recorded the largest decline, with its ATM network shrinking by about 4.4%. Absa’s teller network decreased by 2.3%, while FNB’s network fell marginally by 0.3%, remaining relatively stable between 2023 and 2025.
Standard Bank and Capitec have taken a different approach, increasing their physical cash infrastructure. Capitec, in particular, has significantly expanded its network over the past two years.
The broader reduction in ATM infrastructure is linked to the growing popularity of digital and online banking, which is generally less costly and exposes banks to fewer security risks than traditional cash services.
Cash handling has become increasingly expensive, while ATMs and cash-in-transit operations remain vulnerable to criminal activity. South Africa recorded 31 cash-in-transit heists during the first three months of 2026, adding to the financial and security pressures faced by banks.
Despite these challenges, cash remains particularly important in low-income and rural communities. Banks are increasingly turning to fintech solutions to provide alternatives to traditional cash transactions.
In 2025, Nedbank acquired fintech company iKhokha, which provides small businesses, including spaza shops, with point-of-sale facilities. The technology allows customers to make payments using cards and mobile phones, reducing businesses’ reliance on cash.
Some newer banking institutions have adopted an almost entirely digital model. Discovery, for example, operates without traditional branches or its own ATM network and encourages customers to use retail tillpoints when withdrawing cash.
The cost difference can be significant, with ATM withdrawals at major banks often costing between R10 and R20, while cash withdrawals at participating tillpoints can cost as little as R1 to R3.
Capitec, however, has continued to invest heavily in cash infrastructure. The bank increased its number of cash devices from 7,898 in 2023 to 8,798 by the end of 2025, representing average annual growth of about 5.5%.
Its cash devices include ATMs, cash and coin recyclers and dual-note recyclers, with more than 7,000 of the devices being ATMs.
The bank’s continued investment in physical cash services comes as cash transactions through Capitec have also increased. Cash transaction volumes rose from R596 million in 2024 to R619 million in 2025.
Standard Bank has also recorded modest growth in its ATM network, increasing from 3,450 ATMs in 2023 to 3,496 by the end of 2025.
FNB, meanwhile, has indicated that it has been working to strengthen its physical presence despite a slight decline in its network between 2023 and 2025. By April 2026, the bank had 4,781 Point of Presence devices across the country, up from 4,775 at the end of 2025.
These devices include ATMs, automated deposit-taking machines and statement-printing kiosks. However, the figure remains slightly below the 4,790 devices recorded in 2023.
While digital payments continue to grow, cash remains deeply embedded in South Africa’s economy. The South African Reserve Bank said in June that around two-thirds of transactions in the country are still conducted using cash.
The central bank has stressed that access to cash remains fundamental to the economy and should be protected.
It has also highlighted the significant cost associated with cash, noting that about half of these costs are ultimately passed on to consumers through transaction fees, crime-related losses and other expenses.
With banks increasingly embracing digital platforms, the Reserve Bank has proposed measures aimed at ensuring that South Africans continue to have access to cash while the country transitions towards a more digital financial system.