Kenya and South Africa are emerging as leaders in the transition to cashless economies, driven by the widespread adoption of digital payment systems, mobile money, and contactless transactions.
Kenya and South Africa are emerging as leaders in the transition to cashless economies, driven by the widespread adoption of digital payment systems, mobile money, and contactless transactions.
The move away from cash is not unique to Africa. Across the world, declining ATM availability signals a shift toward digital transactions.
A study by Merchant Machine, using World Bank data, analyzed ATM shrinkage rates to predict when countries will effectively become cashless.
Norway is projected to be the first fully cashless country in 11 years if cash machines continue disappearing at the current rate. In Africa, Kenya is expected to run out of cash machines in 28 years, while South Africa is estimated to follow in 32 years.
Kenya has long been at the forefront of digital payments in Africa, largely due to the success of M-Pesa, which revolutionized mobile money when it launched in 2007.
Today, factors such as high mobile phone penetration, a rising banked population, and increasing financial literacy continue to push Kenya closer to a cashless economy.
South Africa is also progressing toward a less cash-reliant economy, supported by government policies promoting electronic payments. Despite a sizable unbanked population, research indicates that 95% of South Africans have made at least one digital payment.
However, challenges such as financial exclusion and the risk of service downtime still pose obstacles to a fully cashless system.
