South African Reserve Bank proposes shared, unbranded ATM network to cut cash costs

South Africa's central bank announced a proposal to convert the nation's more than 30,000 automated teller machines (ATMs) into a shared, unbranded network. Under the plan, small withdrawals, deposits and balance enquiries below a set limit would be free, regardless of the bank that owns the machine.

Implementation timeline

A pilot program is scheduled to begin in January 2027. By March, the Reserve Bank intends to establish a national cash utility and start integrating cash centres operated by firms such as SBV and Fidelity into the system, with the goal of completing the integration by mid‑year. The first white‑label ATMs are expected to appear before the end of 2027.

Economic rationale

The Reserve Bank cites the high cost of cash handling in South Africa. It estimates that R180.65 billion (about $10.9 billion) of cash is in circulation, while the broader annual economic cost of using cash—including fees, travel, time and crime‑related losses—approaches R90 billion ($5.5 billion). Cash accounts for roughly 56 % of consumer transactions, according to a Reserve Bank‑commissioned study using 2024 data.

Currently, each bank operates its own ATM network, cash centres and logistics, leading to duplicated machines, vehicles, routes and vaults. The proposed shared network would pool this infrastructure, allowing the central bank to locate ATMs where access is most needed and reduce duplication.

The proposal acknowledges that fewer cash transactions do not automatically lower ATM operating costs, as machines, security, cash vans and vaults still require funding. By spreading these fixed costs across a broader user base, the per‑withdrawal expense could decline, particularly benefiting rural and low‑income areas that often face ATM reductions.

The main challenge identified is securing bank participation, as banks would need to relinquish some control over branding, pricing and customer‑retention functions tied to their own machines. If successful, the number of ATMs is not expected to fall, but the competitive incentive for each bank to maintain a proprietary network would diminish.

The Reserve Bank has not indicated a timeline for regulatory approval beyond the 2027 milestones, and it has not released details on the specific fee limits that would trigger free services.