Getting cash at a retailer's checkout is the most affordable way for South Africans to access money, according to the South African Reserve Bank (SARB).

In its latest Towards a Cash Smart Society position paper, the SARB found that cash-back services at retail point-of-sale terminals are more cost-effective than withdrawing money from ATMs or bank branches. Retailers benefit from existing infrastructure and high transaction volumes, helping to keep costs lower.

The Reserve Bank estimates that cash costs the South African economy around R90 billion annually, with much of that expense ultimately passed on to consumers through bank fees, travel costs, lost time, and other indirect expenses.

Although digital payments continue to grow, cash remains the preferred payment method for more than two-thirds of transactions, particularly in rural and lower-income communities.

The report also highlights the growing role of retailers in financial services. Companies including Shoprite, Woolworths, SPAR, and Pick n Pay now offer services such as cash withdrawals, money transfers, insurance, and loans.

Pepkor is taking the next step by applying for a banking licence. The retailer, which operates more than 6,000 stores nationwide, already handles around 22 million cash-in and cash-out transactions and 4 million bill payments each year, positioning it to expand into full banking services.

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