Kenya and South Africa are transitioning to cashless economies with the predicted disappearance of cash machines in 28 and 32 years, respectively. Factors such as mobile penetration and digital payments drive Kenya’s leadership, while South Africa progresses despite a large unbanked population. Challenges remain, but government initiatives support the shift to digital finance.
Kenya and South Africa are on a path to complete cashless economies, utilizing advanced digital payment systems and mobile money technologies. Kenya is projected to decommission its last cash machines within 28 years, while South Africa is expected to do so in 32 years, reflecting a significant shift in payment methods.
Kenya has established itself as a leader in digital payments within Africa, largely due to high mobile phone penetration and a growing banked population. The widespread use of mobile money services, notably M-Pesa, has accelerated this transformation, which started in 2007 and remains a cornerstone for financial transactions.
The transition to cashless systems is echoed globally, with reducing ATM access indicating a trend towards digital payments worldwide. A study by Merchant Machine highlights that countries like Norway could achieve full cashlessness in 11 years, further demonstrating this global shift.
Despite challenges such as a sizable unbanked population and potential service interruptions, South Africa is also advancing toward reduced cash reliance. Government initiatives are bolstering electronic payment adoption, with 95% of South Africans reportedly having engaged in at least one digital payment, promoting greater financial inclusion.
Factors like high mobile adoption rates and improved financial literacy are significant in pushing Kenya toward a cashless economy. However, overcoming obstacles related to financial exclusion remains critical for achieving a fully cashless infrastructure in both nations.
Kenya and South Africa are making remarkable progress toward cashless economies facilitated by mobile money and digital payment systems. With significant projections of cash machine reductions in the coming decades, both countries exemplify a trend towards digital financial solutions. While challenges exist, the commitment to financial inclusion and government support are vital in overcoming these barriers and achieving a cashless future.
Original Source: africa.businessinsider.com
