Two out of every three transactions in SA are still made with cash. This figure, shared by Andre Harmse, head of cash services at PayInc, contradicts the belief that cash is dead. It is very much alive, thriving in the townships, rural areas, informal settlements and cities across SA. For many people, cash is not so much a payment preference as their only point of access to the economy.
“Cash is fundamental and structural, a key pillar of South Africa’s economy, and it is one of the oldest ways in which human beings have transacted in the world,” says Harmse.
PayInc, which rebranded from BankservAfrica in 2025, sits at the heart of the payments ecosystem. Every time a South African pays a bill, makes an electronic payment or draws cash, PayInc’s infrastructure is the invisible connection that makes it happen. It connects more than 30 registered banks and entities through central infrastructure and provides the interoperability that allows the national payment system to function. PayInc processes billions of transactions across cash, EFT, debit orders and PayShap without the public ever noticing.
“We changed the name to reflect our role and capabilities more accurately,” says Harmse. “Pay stands for making payments possible across the broader ecosystem, while ‘Inc’ talks to our purpose of interconnection and inclusivity.”
Currently, R180 billion cash is circulating in SA – 2.5% of the country’s gross domestic product – and PayInc’s systems facilitate the ordering and planning of more than R80 billion in cash transactions every month. These figures represent the millions of South Africans drawing SASSA payouts, buying groceries, paying taxi fares, purchasing airtime and living their lives across both the formal and informal economies.
“Cash is also highly seasonal,” says Harmse. “Between September and December – the bonus and holiday season – cash demand goes up by around 2% to 3%. January and February are typically the lowest-demand months. Managing these fluctuations requires data and visibility to ensure cash is always available to citizens.”
This data-driven approach is what the ICMS was designed to provide. Established in 2010 by PayInc in collaboration with the South African Reserve Bank (SARB) and the major banks, it was, according to PayInc, a world first. Instead of banks running their own cash centres and cash-in-transit vehicles, ICMS automated the entire wholesale cash supply chain so cash can be ordered for branches and ATMs through a centralised platform. The industry has, through this system, visibility into where cash is located and has cut ordering lead times from three days to one.
“If there is a shortage in one area, we look at the surplus in another and move the money around because we know where it’s located,” says Harmse. “This visibility allows us to keep costs down and stay ahead of demand.”
Cash may not be dead, but it is becoming increasingly intertwined with digital payments, and PayInc is committed to making both as accessible as possible. The company is also aligned with the SARB’s Payments Ecosystem Modernisation initiative, which aims to reduce cash transactions by around 30% by 2030 while also making digital payments and access to digital transactions as cost-effective as possible.
“The goal is to embrace a hybrid approach to payments where digital becomes the preferred method and cash becomes secondary, while ensuring that every South African has access and choice,” says Harmse. “We are not going to become a cashless society, just one less reliant on cash – but only when we are sure that nobody is left behind.”
View the full interview here.
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