Smartphones have become central to the financial lives of South Africans and cash is giving way to digital transactions, according to a recent survey by the country’s fastest growing retail bank. Based on a recent online survey of Capitec clients, attitudes towards cash and cashless transactions are evolving.
Smartphones central to our lives
With technology playing an increasing role in most South Africans’ lives, in terms of the use of smartphones for money matters, the survey found that banking apps are used the most (78%) and almost one in five (19%) of respondents use their phone to send cash.
“With improved connectivity, more affordable data and higher smartphone adoption, we are seeing a steady increase in cashless payments,” says Francois Dempers, Manager: Innovation at Capitec Bank.
Cash no longer king
According to the survey, nearly half of respondents (46%) indicated that they “hardly ever” withdraw cash. Among those who do, 20% withdraw every other week and 34% of individuals withdraw one or more times each week. Among the respondents, over one third (41%) typically withdraw between R200 and R500 in cash, with more than one quarter of clients (26%) withdrawing more than R1,000 at a time.
Cashless transactions: QR code ‘power users’ emerging
According to the Capitec survey, Quick Response (QR) codes – ‘squares in a square’ barcodes triggering cashless transactions – are not yet used by most clients, but those using QR codes conduct a large number of transactions. When asked how many times they had made a cashless transaction in the past month, the majority (64%) had made none, but for 18% of respondents, five or more cashless transactions (using a QR code) were enjoyed.
The bank recently introduced an improved Capitec Masterpass app in partnership with MasterCard, which allows up to five debit or credit cards from any bank to seamlessly transact with numerous merchants around the world. South Africa now has more than 50,000 Masterpass-enabled merchants, including QR code providers Snapscan and Zapper which are recognised by the Masterpass app.
“Using the Capitec Masterpass app eliminates the safety risk of carrying cash, simplifies the payment process and allows for transactions without the need for a physical card,” adds Dempers.
About the Survey
Between 19 and 26 of July, followers of @CapitecBankSA on Twitter responded to four questions, with a total of over 2,200 respondents participating. On average each question received 566 responses.