Mumtaz Moosa | mumtazs@icloud.com
25 July 2024 | 20:45 CAT
1 min read

Photo Credit: Pay Corp

One of the leading news agencies recently reported that banks are planning to close some ATMs around South Africa. As an average consumer, I couldn’t help but wonder why. Could it be due to the rise in ATM bombings, or are ATMs simply becoming obsolete?

Here’s the situation: You can’t just walk into a bank to deposit money any more; you’re directed to use an ATM unless you want to argue with the receptionist, who will eventually tell you it’s more expensive to do it any other way. Banks typically have only one or two ATMs in my area, resulting in long lines. Security guards, often present, can do little if you’re robbed at the ATM. Is this just a first-world problem?

Not quite. Most South Africans withdraw almost 90% of their monthly salary from ATMs. Cash is still king here, with many relying on public transport and informal vendors for daily transactions. While the middle and upper classes might use electronic fund transfers (EFTs), the average South African still needs to use an ATM monthly, if not weekly.

Major banks have closed almost 8,000 ATMs around the country. This may not seem like a lot until it’s month-end, and you need to pay bills via the ATM. The lines are long, and people are frustrated. Even though more retailers offer services at till points, many still prefer using ATMs.

Typically, one ATM is designated for cash only while the other handles everything else, which is problematic for those who rely on ATMs to pay utilities, send money transfers, and use e-wallet services.

So, what’s the solution? For now, all we can do is voice our concerns and adapt as best as we can. The closure of ATMs is a significant change, impacting how many South Africans manage their money.