Plastic Beats Paper As South Africans Ditch Cash

South Africans are giving cash the cold shoulder, with most consumers now turning to cards and smartphones instead of crumpled notes and loose change, Cape town Etc reports.

The report highlights that 81 of people aged 51 and over say they seldom, if ever, use physical money, while younger users are leading the charge with 83 reporting a rise in digital payment use since last year. Convenience, safety, and loyalty rewards are the big motivators behind this change.

Despite common perceptions that cash is 'free,' merchants are waking up to the hidden costs of handling it-from security risks to storage and transport. That's led to more retailers encouraging card and digital payments, even for items under R100.

Yet, cash is far from dead.

The South African Reserve Bank reports that cash in circulation has held steady for over a decade, with R171 billion still floating in the economy. What's more, nearly half of the adult population still withdraws all their money as soon as it's deposited, showing just how deep-rooted cash culture still is.