Why South Africa’s Biggest Banks Are Rethinking ATMs as Cash Remains King
While Nedbank, Absa and FNB are shrinking their ATM networks, Capitec and Standard Bank are expanding physical cash infrastructure as millions of South Africans continue to rely on cash.
South Africa’s banking sector is taking increasingly different approaches to the future of physical cash.
While some of the country’s largest banks are reducing their ATM networks as they invest more heavily in digital banking, others are expanding their physical cash infrastructure to serve customers who continue to depend on cash for everyday transactions.
Among South Africa’s Big Five banks, Nedbank, Absa and FNB reduced their ATM networks between 2023 and 2025. Meanwhile, Capitec and Standard Bank expanded theirs.
| Bank | 2023 | 2025 | Change |
|---|---|---|---|
| Standard Bank | 3,450 | 3,496 | +1.3% |
| Nedbank | 4,199 | 4,014 | -4.4% |
| FNB | 4,790 | 4,775 | -0.3% |
| Absa | 6,410 | 6,240 | -2.7% |
| Capitec | 7,898 | 8,798 | +11.4% |
Despite the reductions at some banks, the combined ATM network of the Big Five increased from 26,747 in 2023 to 27,323 in 2025, largely driven by Capitec’s expansion.
Why some banks are reducing ATMs
For banks such as Nedbank, Absa and FNB, cutting back on physical cash infrastructure reflects the broader shift towards digital banking.
Operating ATMs and branches comes with significant costs, including maintenance, cash transportation, insurance and security.
Security is also a major concern in South Africa. Cash-in-transit operations remain a target for organised criminals, with 31 cash-in-transit heists recorded during the first three months of 2026, according to the information provided.
Banks are therefore looking for ways to reduce their exposure to the costs and risks associated with physical cash.
Fintech is changing how customers access cash
The move away from ATMs does not necessarily mean banks are abandoning customers who need physical money.
Instead, some are turning to fintech and retail partnerships to provide alternative access points.
Nedbank, for example, acquired fintech company iKhokha in 2025, strengthening its ability to provide point-of-sale solutions to small businesses.
This allows businesses such as spaza shops and other small retailers to accept digital payments rather than relying entirely on cash.
Another alternative is tillpoint withdrawals, where customers withdraw cash directly from participating retail outlets.
These transactions can also be cheaper for customers than traditional ATM withdrawals, with tillpoint fees typically ranging from around R1 to R3, compared with approximately R10 to R20 for some ATM withdrawals.
Capitec is betting on cash
Capitec is taking a very different approach.
The bank increased its cash-device network from 7,898 in 2023 to 8,798 in 2025, representing an increase of about 11.4%.
Its infrastructure includes thousands of ATMs as well as cash and coin recyclers and dual-note recyclers.
The strategy appears to be supported by customer behaviour and revenue.
Capitec’s cash-based transaction revenue increased from R596 million in 2024 to R619 million in 2025, showing that physical cash remains commercially significant even as digital payments continue to grow.
Standard Bank is also expanding
Standard Bank has taken a more measured approach, increasing its ATM network from 3,450 in 2023 to 3,496 in 2025.
FNB, meanwhile, has kept its network relatively stable. Its ATM count fell slightly from 4,790 to 4,775 over the same period.
By April 2026, FNB had increased its broader Point of Presence devices, which include ATMs, automated deposit machines and statement kiosks, to 4,781.
The figures suggest that the future of physical banking infrastructure may not be as simple as ATMs disappearing altogether.
Cash still dominates South Africa
Despite the rapid adoption of digital banking, cash remains deeply embedded in South Africa’s economy.
The South African Reserve Bank has highlighted that approximately two-thirds of transactions are still conducted using cash.
This creates a difficult balancing act for banks.
On one hand, maintaining ATMs and cash infrastructure is expensive and exposes financial institutions to security risks. On the other, removing physical access too quickly could leave millions of customers with fewer affordable ways to access money.
The Reserve Bank has also highlighted the high cost of maintaining the country's cash ecosystem, noting that around half of its operational and security costs are ultimately passed on to consumers through transaction fees.
The future may be a hybrid model
South Africa’s banking industry may therefore not be heading towards a completely cashless future.
Instead, the emerging model could combine fewer traditional ATMs, more retail cash-access points, digital payments and targeted physical infrastructure in areas where demand remains strong.
Capitec’s expansion demonstrates that cash can still be commercially attractive, while the strategies of Nedbank, Absa and FNB show why banks are under pressure to make their physical networks more efficient.
The real question is no longer simply whether South Africans will stop using cash.
It is how banks can continue providing affordable access to cash while reducing the enormous costs and security risks associated with moving and storing physical money.
For now, the numbers suggest that the ATM is changing rather than disappearing.