Retailers are increasingly going cashless, but is this the new ‘Right of Admission Reserved’ sign for the unbanked, asks the writer? Picture: Freepik
Gasant Abarder writes in a new #SliceofGasant column on cape{town}etc that the cashless revolution in Cape Town is perhaps the most stark indicator of the few who can and the many who can’t.
Increasingly, eateries in Cape Town have moved to cashless payments only, and it’s understandable. In days gone by, when cash was king, our bank notes had a message from the reserve bank from the government promising the bearer the sum in rands. Cute!
Back then when cash ruled, you could negotiate substantial discounts for large purchases.
But these days I can safely navigate a day without my wallet. I never carry cash and I have payment options online, cashless withdrawal facilities and a virtual card on both my watch and my phone. Businesses are going this route because their target market is a similar demographic.
I have tipped a car guard via eWallet. This remains the easiest way to pay those without a fixed abode too, provided they have a cellular phone (even though the person who receives the pin must draw cash at the ATM anyway). Even home industries at festivals and markets and the Bangladeshi store owner down the road has a card facility. There are unconventional banks springing up to cater for an increasing migrant community in South Africa.
But can a bank note be refused as legal tender or is this a grey area? Can I, for example, go into a cashless coffee shop and demand to pay for my double espresso in cash or insist that the cashier ‘call the manager’ if they won’t? Is it a new ‘Right of Admission Reserved’ sign to keep the unbanked out?
But can a bank note be refused as legal tender or is this a grey area?
As we enter 2024, it got me thinking about the unbanked in increasingly tough times. There are millions of people who live in informal settlements who won’t be given access to lending facilities because they simply don’t meet FICA regulations. Outside the big four (and a half) banks, the option is high risk and even higher interest lending with unscrupulous operators.
It’s not really a surprise when one considers we live in one of the most unequal societies in the world – especially here in beautiful Cape Town. Visiting one of our big tourist attractions on New Year’s Day is not even a consideration for hundreds of thousands who live here. Firstly, parking costs a small fortune and many spots don’t have separate pricing systems for tourists and locals.
Is it a new ‘Right of Admission Reserved’ sign to keep the unbanked out?
It’s the same for many other goods and services where the consumer space has become undemocratic and monopolistic. If I want to go to the movies there are just two brands around the country and zero competition. There is a handful of hardware outlets, supermarket brands and appliance dealers. It is bad news for the consumer and screams price gouging and fixing.
These are the bread-and-butter issues that political parties should be addressing. But few of those contesting this year’s general elections care about the greater good. Instead, it is a race for who can get their spot at the feeding trough, where the aim is self-enrichment instead of serving the people.
For the record, I love being cashless. It makes me less of a risk in a country where being mugged is a daily reality. It is simple and convenient and the automation of recorded transactions helps me keep an efficient track of my spending.
But I am among the privileged few in a country where most who live here cannot be cashless. I look forward to the day that banking facilities are open to all and the consumer has greater choice. Mostly, I look forward to living in a country that is truly democratic and the only way we can get there is by ridding our society of inequality.
Until that day, it is predictably and disappointingly the same rudderless body politic that will preside over maintaining the status quo on a road to nowhere. Dare I say, we need a radical re-think about what democracy is about so that it truly serves the interests of all.
I dream of a future where all of us can tap, swipe and scan. Ironically, to get us there we have to vote for our next group of leaders by making a mark on paper with a pen!
* This column was originally published by cape{town}etc.
** The views expressed do not necessarily reflect the views of IOL or Independent Media.