News

Busy farming season boosts ATM use in SA

June 14, 2013

Cash withdrawal statistics from South African IAD Spark ATM Systems indicate that national average cash withdrawal values remained static through the month of May. At farming locations, though, ATM activity recorded the highest month-over-month increase across all locations.

The Spark Cash Index, which measures the average value of cash withdrawals across more than 2,000 Spark ATM across the country, showed a month-on-month increase of 7.30 percent to R439.68 ($44.54) at farming locations in SA.

According to Ryan Tzamtzis, operations manager of Spark ATM Systems, farming locations also continued to record the highest year-on-year growth, at 23.53 percent. 

"The month-to-month increase and consistent year-on-year increases recorded at farming locations can be attributed to the recent 52 percent wage increases in the agricultural sector, which went into effect in March 2013," said Tzamtzis.

National ATM activity increased slightly by 0.62 percent with an average cashwithdrawal value of R464.52 ($47.05). Ronel Oberholzer, principal economist for sub-Saharan economics at IHS Global Insight, said that the small increase is in line with the ATM withdrawal activity trend in April, which showed a month-on-month decrease of 0.73 percent. "A decrease one month is typically followed by an increase in the following month," Oberholzer said.

However, she said that on average, consumer spending and cash withdrawals remain at the same level. "What has been encouraging for the economy though is the year-on-year trend staying positive and in an upward direction."

Read more about trends and statistics.