South Africa’s banking sector is preparing for a major change to the way ATMs and cash services operate, as the South African Reserve Bank (SARB) moves ahead with plans to create a national shared cash network.
The Reserve Bank wants banks to white-label their ATMs, meaning customers would be able to use machines across different banks rather than being restricted to their own bank’s network.
A pilot programme is expected to begin in January 2027, while a national cash utility, fully owned by the Reserve Bank, is planned for establishment by March 2027.
Under the proposal, privately operated cash centres run by companies such as SBV and Fidelity are expected to begin moving into the national utility from around the middle of 2027.
What Will Change For ATM Users?
The proposed system would require every ATM to offer basic services including cash withdrawals, deposits and balance enquiries.
Transactions below a certain value would also be free, potentially reducing the fees customers currently pay when using ATMs belonging to other banks.
The Reserve Bank’s Payments Ecosystem Modernisation programme says the changes are intended to improve access to cash while creating a more efficient national cash infrastructure.
The proposal could, however, affect banks’ ATM fee income, including fees charged when customers use another bank’s ATM.
Banks Respond Cautiously
Major banks and cash-in-transit companies have so far been cautious about publicly commenting on the proposals.
SBV Services, which is owned by Absa, FirstRand, Nedbank and Standard Bank, declined to comment.
Absa has been more forthcoming, confirming that it is actively participating in the Reserve Bank’s modernisation initiative, including discussions around white-label ATMs.
However, the bank said it will continue investing in its own ATM network, particularly to maintain access to banking services in underserved and remote communities.
Absa also highlighted alternative ways customers can access cash and banking services, including withdrawals and deposits at participating retailers, CashSend withdrawals and ATMs offering services such as instant card replacement and PIN resets.
The Reserve Bank’s proposed national network could therefore reshape South Africa’s cash infrastructure while banks continue to balance shared services with their own ATM networks.
Main Image: Moneyweb
