This quantitative and qualitative Cost of Cash Research Study was commissioned by the South African Reserve Bank to provide a comprehensive assessment of the costs associated with the distribution, access, acceptance and use of cash (banknotes and coin) in South Africa.

The study examines both the direct operational costs incurred throughout the cash value chain and the broader economic costs associated with cash usage, using 2024 as the base year of analysis.

Cash remains a significant component of South Africa’s payment ecosystem, accounting for approximately 56% of all consumer transactions by volume.

Although digital payment alternatives continue to expand, cash remains widely used by consumers and merchants across both the formal and the informal economies. The continued importance of cash is reflected in the extensive infrastructure required to manufacture, distribute, store, transport, access and accept cash throughout the economy.

The study sought to:

• quantify the economic, operational and social costs of cash across the South African cash ecosystem;
• identify the principal cost drivers and opportunities to improve efficiency across the cash value chain;
• benchmark South Africa’s cost of cash against international experience and leading practices;
• assess the operational and economic implications of cash usage across different stakeholder groups; and
• provide recommendations to support a secure, efficient, resilient and sustainable cash ecosystem.

The study combined financial analysis, industry data, stakeholder surveys, modelling techniques and international benchmarking.

While many cost elements were directly observable, certain indirect and economic costs, including time-related and opportunity costs, were estimated using accepted economic methodologies and supporting assumptions.

Download the full study or the report below: