Card payments overtake cash: FNB
Businesstech.co.za - Nov 6th 2013, 09:15
FNB reports that monthly non-cash purchases by customers in its consumer segment have surpassed cash withdrawals at its ATMs by R800 million.
Non-cash relates to cheque and debit card, credit card, EFT, and GeoPay. It also includes all electronic and digital channels.
The bank notes that the dominance of card over cash is very new in the financial services sector. It said that in 2011, FNB Consumer Segment customers withdrew R1.3 billion more in cash than the value of card purchases.
Across the industry, card-based spend has been increasing at 38% per annum while ATM withdrawals have increased by 22%, showing the more rapid growth of card and cashless transactions during the past 12 months, FNB says.
“Viewing the difference between ATM withdrawals and card transaction values give us a clear view of consumer trends,” said Irlon Terblanche, CEO of FNB Core Banking Solutions.
Terblanche believes this trend is set to accelerate as the number of the card acquiring devices increases and customers seek to transact via cards where no fees are payable per transaction.
“Customers are also making much smaller value purchases via a card. Some customers are making purchases for R30, or even less. Consumers are showing a preference for cards even as FNB offers free ATM withdrawals.
FNB believes this festive season will see no increase in cash usage and that a further decline in cash usage will become obvious in 2014.2013 Copyright, BusinessTech. All right reserved
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