South Africa's Spark ATM Systems today reported that ATM cash withdrawals in December set a record compared with December 2009.
The Spark Cash Index, which reports on real-time cash withdrawals from Spark ATMs, reported last month that average cash withdrawals were R447 (U.S. $64.47), up 3.03 percent compared to R434 (U.S. $62.63) in December 2009, the previous monthly record. South Africa's currency is the rand.
Spark ATM Systems, which has its headquarters in Cape Town, deploys more than 1,000 ATMs nationwide.
Marc Sternberg, the independent ATM deployer's managing director, attributed the increase to the combination of growing consumer confidence, a move away from credit and lessons learned from the recession and the credit crunch.
"The fact that average cash withdrawals reached a record high last month shows that consumers treated themselves this festive season, especially with low-interest rates, a strong rand and low inflation," Sternberg said. "Cash will continue to dominate as consumers steer away from credit."
In December, Spark ATMs deployed additional machines in anticipation of growing cash demand.
"Retailers and hospitality outlets braced themselves for high cash demand during the festive season, and during December we installed a record number of ATMs. This shows that more and more South Africans are going to the ATMs, and we anticipate this trend to increase as cash continues to be king," he said.
