In South Africa, cash still reigns as king. On paper, South Africa has taken massive strides towards a modern digital economy; 58% of the country's citizens have access to smartphones and over 90% of our adult population has an account at a formal banking provider.
However, despite these advancements, the Global Cash Index indicates cash is still the preferred method of transacting across South Africa. An apparent disconnect remains between the theoretical infrastructure roll-out aimed at digitising the economy and the practicality of everyday operations.
As the leading supplier of solutions to South African schools, d6 aims to utilise its interaction with the more than 2 500 schools in its network to understand and overcome this disconnect, and thereby create secure cashless environments.
The problem with cash lies in its biggest strength; cash is convenient. Cash can transact quickly, is universally accepted and is transacted anonymously. These properties, unfortunately, make cash incredibly attractive to the criminal elements in society, which is why 95% of armed robberies are aimed at cash.
From something as big as a cash-in-transit heist, to something as small as a child being robbed of lunch money, the ease with which cash can be taken places its holder in the cross-hairs of those seeking to alleviate you of your cash. Accepting, storing and transporting cash has become a risky business, with cash-in-transit heists rising, again, by 57% in 2018, and armed robberies against businesses (including schools) rising to 55 per day in 2018. As a result, any business that accepts cash has an one in four chance of falling prey to armed robbers.
The increased risk of cash also drives up the cost of accepting cash, as the expenses associated with secure transit, insuring losses and safely storing cash pile up. These costs place further strain on already cash-strapped schools, forcing them to seek alternative revenue channels, which inadvertently cause additional cash handling challenges. These easily overlooked costs often amount to substantial bottom-line effects, with non-fee paying schools in the d6 network reportedly paying up to 40% of their money raised to banking and other related costs.
Finally, another hindrance to using cash is the experience of the unsung heroes in the accounting offices of schools. The men and women who labour day and night to keep the wheels turning are placed under unnecessary stress, as they are task with counting, recording and reconciling the cash that runs through their establishments. More efficient schools, more often than not, correlate to better final results by keeping the teachers in the classroom instead of burdening them with administration challenges and backlogs.
The challenge of cash faced by schools is often overlooked, with the negative effects not always immediately apparent. It remains a serious challenge nonetheless. d6 group is dedicated to not waiting until the challenge becomes a crisis, but to rather pre-emptively solve the problem in a manner that is catered to the specific needs of the school.
The d6+ Cashless solution is already helping a number of leading schools across the country to start the process of building a secure, cashless environment.
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