Instant Money has become one of the fastest-growing ways of transacting in South Africa, with Standard Bank customers completing 169% more Instant Money transactions per month than they did five years ago.
In fact, over 200,000 of Standard Bank’s new digital customers have sent an Instant Money voucher this year. Private banking clients send two or more vouchers per month, showing how Instant Money is used to support and connect with family and friends. More and more recipients of these vouchers cashout their money at access points in their communities, including spaza shops and convenience stores.
In the past two years, Standard Bank recorded a growth of more than 100% activity in cashouts points in these communities. Given this trend, the bank has decided to expand this network. In partnership with Flash, and Shop2Shop through OTT, the expanded Instant Money Cashout network now features over 400,000 cashout points across the country. Most of these are in peri-urban and more rural and remote communities where access to traditional banking infrastructure remains limited.
“This is a major step forward in expanding financial access for our customers across South Africa. We know that many of our customers, particularly in small towns and rural areas, face long journeys to reach the nearest ATM or branch,” says Kabelo Makeke, Head of Personal and Private Banking at Standard Bank.
The additional cashout points include spaza shops, convenience stores, and other small retailers in rural villages and peri-urban areas like Hammanskraal in Gauteng, Umlazi in KZN, Giyani, Tzaneen and Thoyondou in Limpopo, as well as many villages in the Eastern Cape.
Expanding access
The bank ensured that in areas where one provider was not present, it partnered with service providers most commonly used by local traders, tuck shops and convenience stores, thus the inclusion of OTT, Flash, and Shop2Shop to name a few. The scale of the rollout demonstrates Standard Bank’s commitment to driving financial inclusion and economic participation in rural South Africa.
By embedding cashout points in retail environments customers in underserved areas primarily visit, Standard Bank is also empowering small businesses that serve as key community hubs. Spaza shops and micro retailers partnering through Flash and Shop2Shop will earn transaction revenue while helping residents save on travel time and costs. “This innovation doesn’t just make life easier for customers, it also supports the township and rural economy,” adds Makeke.
Meeting a growing need
The decision to expand Instant Money Cashout points was also a response to the growing trend of smaller value, but frequent Instant Money transactions.
“This pushes up the unseen costs of cash transfer services. Often the recipient cannot afford to spend a portion of this remittance on travelling costs. Improving accessibility was at the heart of this initiative because we can’t improve financial inclusion without making access easier,” said Makeke.
These additional cashout points complement a nationwide network of 17 retailers, where recipients can withdraw cash in addition to Standard Bank ATMs. The full list of outlets where customers can withdraw cash using their Standard Bank Instant Money includes the following:
- Checkers
- Shoprite
- Usave
- PEP
- PEP cell
- PEP Home
- OK Furniture
- House and Home
- Pick n Pay
- Boxer
- Spar
- OTT
- Flash
- Shop 2 Shop
- Kazang
- A2PAY
- R & A Cellular.
engine eye
Lebo Gunguluza started his entrepreneurial journey with R60 and a lot of nerve. He managed to secure a bursary, which enabled him to study a BCom degree at the University of Natal. To earn money while he studied he became an agent for Edgars on campus, then went on to work in sales for the SABC. He launched his first business and made his first million by 27 but squandered it and had to work his way back to financial wealth. He launched Corporate Fusion, and at 33 his business was turning over R14 million, but he left it to others to run while he travelled the world, and he soon found himself in R4 million worth of debt. Several years later after paying off his debt, he launched GEM (Gunguluza Enterprises & Media) Group of Companies, which has become a multimillion rand business in it\’s first two-and-a-half years. He went on to become one of the \”dragons\’ on the South African edition of Dragons\’ Den, as well as one of the \”sharks\’ on M-Net\’s Shark Tank.