Cashless economy could be key to curbing CIT robberies

As South Africa’s ongoing cash-in-transit (CIT) robberies continue claiming innocent lives, proponents of a cashless economy are amplifying their voices.

They argue that with fewer cash transactions, the amount of physical cash in circulation would decrease, making CIT vehicles less attractive and lucrative targets for criminals. 

This comes in the wake of two bystanders who were gunned down during a violent CIT heist on Barry Marais Road in Dawn Park, Ekurhuleni, on Monday.

Police said a cash delivery vehicle was bumped from the back by a silver Mercedes-Benz, causing the truck to capsize onto a Toyota Quantum taxi, which had seven occupants. 

“Five of the occupants sustained injuries and were given medical treatment while the other two escaped with no injuries,” said Gauteng provincial police spokesperson, Colonel Dimakatso Nevhuhulwi.

She said a group of about eight assailants bombed the cash delivery vehicle and fled the scene with an undisclosed amount of money.

Gunshots were exchanged during the heist between security officials and the robbers.

Two bystanders were caught in the crossfire and have been declared dead.

In May, IOL reported how KwaZulu-Natal was rocked by two brazen CIT heists within just a few days, prompting heightened police vigilance.

In the first incident, a gang of ten armed suspects rammed a cash van in Pietermaritzburg. A security guard was shot, and the assailants fled with stolen firearms and an undisclosed sum of money.

Barely days later, chaos erupted on the M25 KwaMashu Highway when gunmen in two vehicles ambushed another cash van in broad daylight. The suspects opened fire and used explosives to halt the vehicle, leaving the guards with minor injuries while escaping with cash.

Footage of the attack soon went viral on social media, capturing the dramatic moment explosives were strapped to the van and detonated amid peak-hour traffic.

These violent heists have reignited debate over whether South Africa should fast-track the shift to a cashless society, a transition some retailers are already testing.

With CIT robberies terrorising communities almost daily and innocent lives increasingly at risk, the question has never been more urgent: is the country ready to embrace a partial cashless future?

Advocates of a cashless economy maintain that when cash is no longer the primary mode of payment, the substantial monetary gains that motivate these elaborate heists are no longer possible.

Gauteng Premier Panyaza Lesufi has been calling for a cashless economy. He had said, although they were struggling to get the transport industry on board, the Gauteng government services, including its hospitals and driving license centres, would go cashless. ''If you can do that, you know you won't have ATM bombings because there will be no cash''.

In 2023, during a television interview, Lesufi said some countries have gone down that path by eliminating cash and are using cards and credit cards as a payment method.

Research shows that businesses that embrace cashless payments face a reduced risk of robbery and ATM bombings, creating a safer environment.

At that time, Lesufi said they had made inroads persuading the hospitality sector to embrace a cashless system. They were also busy getting the hospitality industry - ''because that's where a lot of cash circulates''.

He had said that the sector would start putting a system in place to ensure that customers use their phones, their cards and other methods to make payments, ''so that we can eliminate or minimise cash.'' He said,

Although they were struggling to get the transport industry on board, the Gauteng government services, including its hospitals and driving license centres, would go cashless.

''If you can do that, you know you won't have ATM bombings because there will be no cash. ''We will have fewer bombings of (CIT vehicles) because they will not transport lots of cash. And we will also not have lots of business robberies. If you have a look at our crime stats, those (cash robberies) are the areas that contribute to our high crime stats.''

CIT vehicles transport large sums of money from retailers and other shops. The vehicles are also instrumental in depositing money into ATMs.

In 2024, The Star reported that retail giant Woolworths sparked debate after announcing that its in-store W-Cafe coffee shops would go cashless, accepting only card and digital payments. The move triggered a wave of reactions on social media, with some customers expressing frustration at being excluded as cash-only buyers. However, the backlash and controversy faded out soon after.

Research done by an MPhil in Futures Studies graduate of the University of Stellenbosch Business School (USB), Diana Bresendale, found that Informal traders are hesitant to adopt cashless payments.

Bresendale said that the informal sector relies on cash as a means of payment, and as evidence, it is the only means of payment they accept. 

“The informal sector is underbanked, and their use of financial instruments to grow their business or enhance their cash flow is underutilised.”

According to a Stats SA report, 1.8 million South Africans are operating as informal traders. In terms of payment methods, eight out of ten traders had no bank account, and 60% of those who did possess one only used it to process payments.

“Since cash is still a mainstay of payment tender in South Africa, it indicates that both consumers and informal merchants are cautious to adopt cashless forms of payment. The challenge with the uptake of cashless payment methods will be addressing perceptions, especially around cost, to induce a natural gravitation towards cashless payment methods,” said Bresendale.

In countries such as India, moving towards a cashless economy has brought several advantages, including improved financial inclusion, reduced circulation of illicit funds, stronger tax compliance, greater transparency, and the ease of digital payments.

However, at the same time, the shift has exposed challenges such as heightened cybersecurity threats, the exclusion of rural and older populations due to the digital divide, reliance on technology, and the tendency for consumers to overspend when transactions are no longer tied to physical cash.

Cash continues to dominate the streets of South Africa and spaza shops; however, with each violent heist resulting in more casualties, there is increasing pressure to reconsider whether the risks associated with cash outweigh its convenience.

The Star

masabata.mkwananzi@inl.co.za