South Africa’s banks and cash companies say they are working with the Reserve Bank on its plan to share all ATMs. Most would not say what they told the central bank, TechCentral reported.
The plan would make the country’s ATMs white-label machines that any bank’s customer can use. It would also move privately run cash centres into a national utility owned by the Reserve Bank.
“We are asking banks to white-label all ATMs,” said Pradeep Maharaj at a media briefing on Friday. He is executive director of the Reserve Bank’s Payments Ecosystem Modernisation programme.
Under the plan, a white-label ATM pilot starts in January. A national cash utility, fully owned by the Reserve Bank, is due to be set up by March 2027.
Cash centres run by companies such as SBV and Fidelity would start moving into it by the middle of 2027. Every ATM would have to accept deposits, withdrawals and balance enquiries. Transactions below a set amount would be free.
SBV Services declined to comment. “After careful consideration, we have decided not to provide comment on this issue at this point in time,” it said.
SBV is owned by Absa, FirstRand, Nedbank and Standard Bank. All four run their own ATM networks. This means the plan affects them as ATM owners and as part owners of cash centres.
Banks also earn money from ATM fees. This includes what Maharaj called the “disloyalty fee”, charged when a customer’s own bank machine is out of order. A shared network with free small transactions would reduce that income.
Absa said it is “actively participating” in the plan, “including the exploration of white-label ATMs”. But the bank said it is not slowing its own spending on ATMs.
“We continue to invest in and optimise our own ATM network to support sustainable access to cash and banking services across the country, with a particular focus on underserved and remote communities,” said Daniel Munslow, Absa Group’s managing executive for group communications.
“Our ATM strategy is not only about cash,” Munslow said. Absa pointed to cash services at retail tills, CashSend withdrawals at some shops, and ATMs that can replace a card or reset a Pin.
Marinus de Jager, CEO of FNB Cash, said First National Bank had “proactively engaged” with the Reserve Bank on the ATM model and the cash centres.
He said shared infrastructure could bring “broader access to cash, enhanced operational efficiencies and lower costs across the cash value chain”. But he said any new model must be “carefully considered” because of the size of the changes.
Standard Bank said it is “fully engaged with the Reserve Bank” but would not discuss its submissions. The bank said the Reserve Bank plans to formally respond to industry submissions in November.
The Cash-in-Transit Association of South Africa said it could not comment because the industry is still talking to the Reserve Bank.
Discovery Bank, which does not own ATMs, said it expects the direct impact on itself and its clients to be limited. It said its research with Visa shows growing use of cards and digital wallets.
Capitec and Nedbank had not responded by the time TechCentral published its report.
Fidelity Cash Solutions said it had taken part in “several engagements and discussions” with the Reserve Bank. “A lekgotla is scheduled for 12 November, where we expect to receive greater clarity on the way forward,” it said.
Source: this article is based on reporting by TechCentral. Image: TechCentral. Written with the help of AI and published by the Tzaneen Voice Technology desk. See our Editorial Standards.
Werner Jacobs covers technology for Tzaneen Voice. Werner reports on mobile networks, data prices, internet access, smartphones, apps, AI, cybersecurity and South African tech companies. Each story explains what a new product, price change or policy means for ordinary users in South Africa.