Shared ATM network pilot set for January 2027 in cash overhaul

A shared, unbranded ATM network serving customers of any bank, with a pilot scheduled for January 2027, is at the centre of the Reserve Bank’s proposed overhaul of South Africa’s cash infrastructure, its most significant operational shake-up in years.

Officials outlined the plan on 16 October. Participating machines would handle withdrawals, deposits and balance enquiries, with smaller transactions offered free of charge. The fee threshold and the final arrangements with banks have not yet been settled, and discussions are continuing. According to TechCentral’s reporting from the briefing, the Reserve Bank is expected to respond to alternative industry proposals in November.

“We are asking banks to white-label all ATMs,” said Pradeep Maharaj, executive director of the Reserve Bank’s Payments Ecosystem Modernisation programme.

The country has approximately 30,000 ATMs, but their distribution leaves some rural and lower-income communities with limited access. A shared network would allow the authorities and industry to coordinate where machines are actually needed, rather than leaving placement to individual institutions. Under the proposed model, the machines would operate without individual bank branding.

The proposal tackles a costly feature of cash distribution: different institutions maintain overlapping infrastructure while some communities remain poorly served. The Reserve Bank’s official Cash Smart strategy identifies duplicated facilities, transport costs and long journeys to cash-access points among the problems it wants to resolve. Its plan includes consolidating wholesale cash infrastructure, coordinating distribution and introducing shared ATMs. The intention is to preserve convenient access as digital payments expand and the economics of maintaining cash services become more difficult.

Beyond lower withdrawal charges, consumers could benefit from better ATM placement, which could reduce the time and travel costs of accessing cash, particularly in areas with limited access to nearby banking services. The extent of these benefits will depend on the final network coverage and pricing arrangements.

Meanwhile, the restructuring goes further than the machines themselves. Bloomberg also reported that the proposed utility would consolidate cash-management operations. Maharaj said South Africa has about 109 cash centres, a number he wants reduced to no more than 50. Centralising parts of the system would aim to reduce repeated handling and overlapping distribution costs. Officials are targeting March 2027 to establish the national cash utility, which would help reorganise the infrastructure used to handle and distribute physical money.

The scale of the challenge is underlined by how much South Africans still rely on physical money. Cash accounts for approximately 56% of consumer transactions by volume, according to Reserve Bank research cited in the report, which makes affordable cash access relevant even as more customers adopt electronic payments.

Much remains unresolved. Banks have not completed their discussions with the Reserve Bank, and the proposed free-transaction threshold has yet to be disclosed. Until any changes take effect, customers’ existing ATM charges will continue to depend on their bank and account terms.

The full proposal is covered in detail at https://africa.businessinsider.com/local/markets/south-africa-wants-banks-to-share-its-30000-atms-and-make-smaller-withdrawals-free/yhrl9f6, where the briefing and the Reserve Bank’s plans are set out further. Whether the January 2027 pilot meets that timeline will depend on how quickly the banks and the central bank can settle the terms.