THE advice we get about money changes weekly. One week we’re told to use cash to avoid spending but the next, we’re told to use cards because they’re safer and faster. It’s confusing . . .
SunMoney spoke to a few people to find which of the two they prefer.
- Desree Moseou (24) from White City said: “I often use cash when buying from spaza shops for transport and so on. But I use my card at big retail stores because it is much more convenient and safer than cash.”
- Mpho Mofokeng (38), an administrator at Jabulani Technical, said: “I prefer to use my card when buying or doing shopping because I save a lot when using it at shops.”
- Naledi Kekana said: “I am in my fourth year at UJ and every day I use a taxi to school so I have to pay cash. I am forced to use cash daily.”
- Inert Ndou, a spaza owner in Diepkloof, said: “Almost 100% of my customers use cash because I haven’t introduced the swipe system yet. I personally prefer cards because the money goes straight into the account.”
- Maggie Mothobi, of Maggie’s Liquor Store, said: “Most of my customers use cards when buying their drinks here. I think it is much safer for them.”
A recent study by Mastercard found that over 50% of Mzansi use cash daily.
How do we encourage South African consumers to use modern payment methods?
The cash v card misconception
There is a common misconception that cards are less safe than cash. There is some risk associated with cards – pin numbers can be scanned and used by fraudsters, cards can be swapped or copied, and online purchasing often warns of phishing and other scams.
However, is cash truly a better option? Not so when considering the risks of carrying cash.
Many banks are willing to reimburse lost funds due to card fraud, provided the customer follows the recommended safety precautions. Losing cash is only the customer’s problem.
Bridging the gap
There is already a slow shift towards cards, thanks to the popularity of the digital economy and easier access to online shopping channels.
