In more South African news, Standard Bank, South Africa’s largest bank by assets, has closed down 24 automated teller machines (ATMs) in the first quarter of 2025, after a decline in foot traffic and usage recorded at stands.
Standard Bank has the largest ATM footprint in the country but has removed nearly 2,000 machines since 2020, cutting its network from 5,390 to 3,448. In 2024, in-branch transactions at the bank fell to 2.5 million while online transactions climbed 30% to 1.5 billion, further cementing Standard Bank’s conviction.
Here’s why it matters: Payments in South Africa are going digital, and banks are making that shift. In 2024, around 70% of South Africans made digital payments; this shift could be driving banks’ strategy.
For example, Nedbank spent R1.65 billion ($94 million) last week to acquire iKhokha, a business payments platform, in a bid to deepen its presence in digital merchant services. Standard Bank, on its part, has been shrinking its ATM network since 2019 and redesigning branches to align with this changing behaviour.
ATM scams are also pushing customers away from cash, with several banks issuing warnings and guidelines in recent months. When you add the high cost of maintaining ATM hardware, banks have even more reason to double down on digital payments.
The big picture: Banks are opting for more digital presence. While two-thirds of South Africans still use cash, the country’s banking industry is already aligning for a digital-heavy future. The competition ahead will rest on who can build a cash-lean payment ecosystem.
