Cash or card in South Africa: Which is the best way to pay?

Do you have a trip to South Africa on the horizon? If the answer is yes, you’re probably already planning your itinerary and setting up a travel budget. Regardless of how much you plan to spend, it’s important to understand the financial habits of people in South Africa compared to those in the UK.

Cash is rather popular in South Africa and it’s accepted virtually everywhere. However, cards are used almost equally as much. Since it can be tricky to decide what you should rely on during your trip, we’re here to help. We’ll dive into the details to answer the question - is it better to use cash or card in South Africa?

We’ll also show you a cost-effective way to manage your spending in South Africa. For any international purchases, whether online or in person, you can rely on the Wise card. You can even withdraw cash like a local for low fees* at the mid-market exchange rate.

How cash-centric is South Africa?

South Africans use cash and debit cards almost equally as payment methods at POS. On average, almost 70% of people use these options for their everyday spending. Credit cards follow at 30%.¹

The popularity of mobile payments is on the rise in South Africa, increasing by 7% in the past six years. However, they’re still used in less than 30% of cases. This includes devices like smartphones and smartwatches.²

Cash etiquette in South Africa³

Tipping isn’t obligatory in South Africa, but it has become common. The hospitality and tourism industry are very important for the country’s economy, so the service is usually of great quality. It’s seen as a nice gesture of appreciation for service in restaurants and bars, but also in hotels and taxis.

A 10% tip for restaurant and bar staff is the norm, tour guides or taxi drivers, but this is just a general guideline. However, you can also round up the bill or leave some money in the communal tip jar. These are the general rules, but the tip amount will mostly depend on the circumstances.

Even though you’ll be able to leave a card tip sometimes, it’s better to tip in cash. This way, you’re ensuring that your server receives the tip in full.

Cash or card in South Africa - the comparison

We’ve listed some situations where you’ll be paying for things in South Africa. Here’s whether you’ll be able to pay by card, in cash or both:

Paying for…	Card	Cash
Taxis⁴	In some taxis, ask ahead of time	Yes
Convenience stores	Usually, in larger stores	Yes
Public transport⁵	No, only with a public transport card	Yes
Restaurants	Usually, in bigger cities	Yes
Wine tour⁶	Yes	Yes

Using your card in South Africa at an ATM

There are over 28,000 bank ATMs in South Africa, but this number is slowly decreasing. You’ll be able to find them in shopping malls, in or around main streets and town squares and, of course, in banks.⁷

Withdrawal limits at South African ATMs may vary, but it’s usually 5,000 ZAR a day. Make sure you check with the bank operating the ATM you're using.⁸

Will my UK debit card work in South Africa?

Yes, your UK debit card will most likely work fine in South Africa. However, keep in mind that some places might not accept cards as a form of payment at all.

Can I use my UK credit card in South Africa?

Yes, you can use your UK-issued credit card in South Africa, as long as you go to a place that accepts cards.

Reasons to use cash in South Africa

Cash is the leading payment option in South Africa. If your goal is to blend in with the locals as much as possible during your trip, relying on cash is the way to go. It’s widely accepted and sometimes even the only option available in smaller restaurants and businesses.

Cash is also a better choice if you don’t want to miss out on some authentic local experiences that aren’t made specifically for tourists. Also, in case you plan on tipping the service staff while in South Africa, it’s good to keep some South African rand on you.

Reasons to use credit or debit cards in South Africa

You’ll likely be able to use your card in all larger stores, restaurants and businesses in South Africa. They’re commonly used by locals, particularly debit cards. On top of this, the main reason to use cards is safety, since having large amounts of cash on you makes you an easy target for pickpockets. Also, if you primarily rely on your cards, you won’t have to deal with having leftover South African rand at the end of your trip.

Are contactless card payments common in South Africa?

Yes, contactless transactions are very common in South Africa. In fact, according to Visa, South Africa is the leader when it comes to contactless payment adoption in Africa.⁹ The contactless limit in is 500 ZAR, after which you’ll need to enter your PIN.¹⁰

Your Wise card can also be used for contactless payments in South Africa. If you don’t want to carry cards with you, you can get the Wise virtual card with the same features.

Check out the latest GBP to ZAR conversion rates below:

Other payment methods in South Africa

Besides traditional credit and debit cards, other payment methods are also available in South Africa.

Mobile payment⁹

South Africans are starting to use digital wallets and mobile money more. However, the penetration of mobile money has been somewhat low compared to other African countries, due to the strict regulations in South Africa.

On the other hand, digital wallets such as Apple Pay, Google Wallet and Samsung Pay are much more popular. They can be used for contactless in-store payments, online purchases, as well as sending money to friends and family.

Scan-to-pay apps like Zapper or SnapScan are another popular option in South Africa. They use QR code scanning rather than NFC. Their advantage is that they work even without network connection or when a terminal is offline.

If you plan on using any of these apps during your trip, make sure you install and update them before you leave to avoid any issues.

For an additional layer of security, you could add your Wise virtual card to your wallet. It has all the benefits of a regular Wise card, but it exists in your phone only. You can freeze your Wise virtual card after every transaction, so top-notch security is guaranteed.

Buy now pay later options (BNPL)

BNPL services are becoming popular in South Africa. People frequently use them for online shopping instalments, but also when paying for trips.

There are several well-known local BNPL options. Payflex is the first and most popular South African BNPL. It attracts around 39% of users, followed by PayJustNow at around 37%. LayUp and Mobicred are just a few more providers that are on the rise.

What is the best way to pay in South Africa: cash or card?

If you’re still wondering whether you should use cash or card in South Africa, the answer is probably cash. Although you’ll be able to pay by card in bigger businesses and restaurants, cash is still the most popular payment method among the locals.

If you don’t want to rely on cash completely, it’s a good idea to bring your cards with you just in case and make sure your digital wallet apps are up-to-date.

Spend like a local in South Africa with the Wise card

Want to spend like a local in South Africa without worrying about exchange rates and hidden fees? The Wise card might be just the option you were looking for.

You can use your Wise card for international payments, from your accommodation costs to daily expenses. It automatically converts your pounds at the mid-market exchange rate with only a small, transparent currency conversion fee*.

You can also use it to easily withdraw cash from the ATMs in South Africa. Each month, you can make 2 withdrawals of up to 200 GBP for free. After that, there is a charge of 0.5 GBP per withdrawal. There’s also a 1.75% fee on any amount you withdraw above 200 GBP.

Spend like a local with Wise

Cash or card in South Africa - FAQs

Here are some of the most frequent questions about using cash or cards in South Africa:

Do you tip in South Africa?

Tipping is common in South Africa, but not mandatory.

How much cash should I take to South Africa for 1 week?

That largely depends on your spending habits and travel style. However, you can always withdraw more money if you end up needing it.

Can I use contactless payments in South Africa?

Yes, contactless payments are quite common in South Africa.

Do taxis accept cards?

Some taxis accept cards, but make sure you ask the driver before getting in.

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Sources used:

1. Statista - POS payment methods in South Africa
2. Statista - Mobile payment use in POS in South Africa
3. Crown Currency - tipping in South Africa
4. SABC News - cashless taxi in South Africa
5. MyCiTi - MyConnect transport card
6. Winetour.co.za - South Africa premium wine tour
7. Business Tech - ATMs in South Africa
8. Standard Bank - South African ATM withdrawal limit
9. Stitch - payment methods in South Africa
10. Nedbank - contactless limit in South Africa
11. Fintech News Africa - BNPL in South Africa

Sources last checked on date: 25-Oct-2024