Original Research

Cardless banking in the Nelson Mandela Metropole: A means of financial inclusion for the excluded

Jasmine E. Kinsman
Journal of Economic and Financial Sciences | Vol 12, No 1 | a182 | DOI: https://doi.org/10.4102/jef.v12i1.182 | © 2019 Jasmine E. Kinsman | This work is licensed under CC Attribution 4.0
Submitted: 04 February 2018 | Published: 24 April 2019

About the author(s)

Jasmine E. Kinsman, Department of Business Management, Nelson Mandela University, Port Elizabeth, South Africa

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Orientation: The growth of mobile phone usage and wireless connection has transformed the manner in which financial services are provided. However, it has failed to increase the accessibility to formal banking facilities for the underbanked population.

Research purpose: To determine their perceptions and intentions of cardless banking among underbanked consumers.

Motivation for the study: The financial inclusion of underbanked consumers is increasingly important given the current social welfare payment crisis in South Africa.

Research design, approach and method: The study made use of a quantitative research approach using surveys to collect data from 175 underbanked consumers.

Main findings: The study revealed that underbanked consumers have positive perceptions of the complexity, trialability and compatible advantages of using cardless banking.

Practical/managerial implications: Underbanked consumers and social grant beneficiaries should be allowed to try cardless banking before using it to experience its benefits in order to assess how suitable it is to their circumstances without the risk of loss or barriers should they not prefer it. Little to no special training should be required in order to use cardless banking, and it must be easy to explain to their friends and family how it works.

Contribution/value-add: Recommendations are made to financial institutions who intend on capturing the underbanked consumer segment, the National Treasury and other governmental institutions who wish to increase financial inclusion to underbanked consumers and especially to South African Social Security Agency (SASSA) when considering an alternative payment method for social grant beneficiaries.


cardless banking; underbanked consumers; financial services; social grant; SASSA


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