The question behind a new industry report is simple: did South Africa truly go cashless? The FinTech Association of South Africa says digital wallets, scan-to-pay and instant transfers have reshaped how connected, urban consumers pay — but millions of people working and shopping in informal economies have been left out, still relying on notes and coins.
Why the split? The report points to a stack of practical barriers: patchy mobile coverage, high data costs, and the price of smartphones or card machines. Small traders face fees and chargeback risks that are tough to absorb on thin margins, while power cuts and network outages can stop terminals cold. Many spaza shops and street vendors lack formal business documents needed to open merchant accounts, and customers in cash-based communities often prefer the certainty of money in hand for daily budgeting.
The consequences are not abstract. Cash-only trade keeps costs opaque, limits access to working capital, and shuts out sellers from delivery platforms and digital marketplaces. It also adds friction for social grant recipients who must queue to withdraw money before they can spend it locally. Even where digital options exist — such as low-tech phone menus or the industry’s new instant-pay system, PayShap — awareness, trust and consistent acceptance at the till remain uneven.
The report argues the fix is less about another app and more about basics: cheaper data and devices, simpler sign-up and settlement for very small merchants, offline-capable tools that work during power cuts, and interoperability so any wallet pays any shop. If those gaps close, the country’s payment modernisation can reach the township main street, not just the urban mall.
For more detail, read the full announcement.