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South Africa’s banking sector is undergoing a major transformation, with traditional cash-based banking giving way to a rapidly expanding digital payment ecosystem. New industry data shows that the country’s five largest banks — Absa, Capitec, FNB, Nedbank, and Standard Bank — have collectively reduced their ATM networks by more than 23%over the past five years, reflecting the nation’s accelerating shift toward cashless transactions.
The total number of ATMs across these banks fell from 34,405 in 2020 to 26,454 in 2025, driven by declining cash usage, the rise of digital banking, and the escalating cost of maintaining and securing ATM infrastructure.
Affordable point-of-sale (POS) devices from fintech startups such as iKhokha and Yoco have made digital payments accessible even for small businesses in rural communities, where mobile connectivity continues to improve. Meanwhile, mobile banking apps and digital wallets are increasingly replacing physical cash, offering safer and more convenient options for millions of South Africans.
Another major factor is the growing threat of ATM-related crimes. Frequent ATM bombings and theft have made these machines expensive to secure and insure. Faced with these costs, banks are turning to partnerships with retail chains like Shoprite and Pick n Pay, enabling customers to withdraw or deposit cash at checkout counters for a small fee.
Digital-first institutions such as TymeBank, Discovery Bank, and Bank Zero have also embraced this model, leveraging retail partnerships to provide physical cash access without maintaining standalone ATMs.
Among major banks, Capitec stands out as the only one to expand its ATM network, growing from 5,652 machines in 2020 to 8,798 in 2025 — a 55.7% increase that now makes it the largest ATM operator in South Africa.
By contrast, Standard Bank, which once led the market, has reduced its ATMs by 62%, dropping from 8,970 to 3,450over the same period. According to Willie Chavalala, Head of Personal and Private Banking Client Coverage at Standard Bank, the trend reflects evolving customer behaviour and reduced reliance on cash.
“The need for ATMs will always exist, but we’re seeing a significant reduction in cash dependency,” Chavalala noted.
FNB, now the second-largest network with 4,771 ATMs, recorded a 15% decrease, while Nedbank made only a slight reduction from 4,398 to 4,297 machines. Nedbank emphasized that while digital payments dominate urban centres, cash remains vital in informal and township economies.
Absa, on the other hand, implemented one of the most aggressive reductions, slashing its ATMs by 47% from 9,763 in 2020 to 5,138 in 2025. Despite this cutback, the bank said ATM usage has remained steady in key regions, signaling a gradual but consistent move toward digital alternatives.
As South Africa continues its transition to a digitally driven financial ecosystem, the decline of ATMs marks a pivotal shift in consumer behaviour. While challenges remain for cash-dependent populations, the trend underscores the nation’s commitment to digital transformation, financial inclusion, and a more efficient payment infrastructure.
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