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First National Bank (FNB) has reported monthly non-cash purchases made by customers within its Consumer Segment have overtaken cash withdrawals at ATMs by ZAR800 million (US$78.7 million).
According to FNB, Consumer Segment customers withdrew amounts totalling ZAR1.3 billion (US$127.9 million) more in cash than the value of card purchases two years ago.
The banking industry at large has recorded a 38 per cent per annum increase in terms of card-based spending, while ATM withdrawals have increased by 22 per cent.
“Viewing the difference between ATM withdrawals and card transaction values give us a clear view of consumer trends,” said Irlon Terblanche, chief executive officer (CEO) of FNB core banking solutions.
Terblanche said the cashless trend will accelerate due to the increasing number of card acquiring devices, while customers are also making payments through their cards where there are no additional fees per transaction.
“Customers are also making much smaller value purchases via a card. Some customers are making purchases for ZAR30 (US$2.95), or even less. Consumers are showing a preference for cards even as FNB offers free ATM withdrawals,” he said.
“FNB is also encouraging cashless purchases. We made card swipes free across all our pricing options to cut the costs of daily transactions. At the same time, we are offering eBucks rewards in ways that encourage cashless purchases.”
FNB said it believes the festive season will not see an increase in cash usage with a further decline in cash usage during 2014.