In our ongoing efforts to monitor dependence on cash within the informal retail sector, we have recently conducted our second audit focusing on the state of payment solutions, specifically in Taverns across the country.
Our research reveals that a significant portion, approximately 65%, of taverns surveyed do not offer card acquiring as a payment option to their consumers. This figure has increased since our last audit, indicating a persistent reliance on cash transactions within the sector.
Among those taverns that do offer card acquiring terminals, the market is largely dominated by traditional banks, with FNB taking the lead.
Interestingly, non-traditional payment providers have managed to maintain their market share since our last audit. While they may not be the dominant players, they have secured their position and offer viable alternatives to the traditional banking sector.
Furthermore, we observed a notable rise in the adoption of drop safe solutions among the taverns in our sample. These drop safe solutions are commonly accompanied by the presence of a card acquiring device. The benefits of such a combination are twofold: they act as an additional deposit-taking solution for the taverns themselves and other retailers in their vicinity, and they also enhance security in cash handling processes for the taverns.
