South Africa’s Banks Ditch ATMs as Digital Payments Take Over

Banks in South Africa are rapidly reducing their number of ATMs as digital payment adoption accelerates across the country. New data reveals that the five biggest banks, Absa, Capitec, FNB, Nedbank, and Standard Bank have collectively slashed their ATM networks by nearly a quarter over the past five years.

The total number of ATMs stood at 26,454 in 2025, down from 34,405 in 2020, representing a decline of 23.1%. The shift is being driven by a combination of reduced cash usage, advances in digital banking, and the high cost of maintaining and securing ATMs.

Digital payments have become increasingly popular, boosted by affordable point-of-sale devices from startups like iKhokha and Yoco. These have given small businesses easy access to card payments, even in rural areas where mobile connectivity has improved significantly. Meanwhile, the growth of mobile banking and digital wallets has made cashless transactions more convenient and secure for millions of South Africans.

Another key factor is the cost of protecting ATMs from criminals. ATM bombings and theft have become costly for banks, often resulting in not just the loss of cash but also extensive property damage. Security risks, combined with insurance expenses, have made ATM operations less viable in some regions.

To ensure continued cash access for customers who still prefer or rely on it, major banks have partnered with grocery and retail chains such as Shoprite and Pick n Pay. These partnerships allow customers to withdraw or deposit money at till points for a small fee. Digital-only banks like TymeBank, Discovery Bank, and Bank Zero have also adopted this approach, taking advantage of retail locations with higher security and foot traffic.

Among South Africa’s major banks, Capitec is the only one to increase its ATM count, expanding from 5,652 machines in 2020 to 8,798 in 2025 — a growth of 55.7%. This expansion has made Capitec’s network the largest in the country, overtaking Standard Bank, which once led the pack but has since reduced its machines by 62%.

Standard Bank’s ATM count dropped from 8,970 in 2020 to just 3,450 in 2025. According to the bank, the decline reflects changing customer habits and a significant reduction in cash dependency. “The need for ATMs will always be there, but we are seeing a huge reduction in terms of reliance on cash,” said Willie Chavalala, head of personal and private banking client coverage at Standard Bank South Africa.

The bank has upgraded its remaining ATMs with next-generation features to compensate for reduced branch presence. FNB, now the second-largest ATM network with 4,771 machines, also saw a decline of 15%. Nedbank was more conservative, reducing its ATMs slightly from 4,398 to 4,297. The bank emphasized that while digital transactions are growing, cash still plays a vital role in informal and township economies.

Absa took a more aggressive approach, reducing its ATM network by 47%, from 9,763 in 2020 to 5,138 in 2025. Despite the cuts, it said ATM usage has remained stable across key areas, suggesting a gradual but steady shift toward digital payments.

As cash usage declines and the cost of ATM operations rises, South Africa’s banking sector appears to be embracing a future defined by digital channels. While the transition may pose challenges for cash-dependent consumers, it marks another milestone in the country’s broader move toward financial digitization and inclusio