Kenya and South Africa are poised to become the first countries in Africa to transition to fully cashless economies, according to a recent study by Merchant Machine. The study, which analyzed ATM shrinkage rates using World Bank data, predicts that Kenya will run out of cash machines in 28 years, while South Africa is estimated to follow in 32 years.

The move towards cashless economies is not unique to Africa, as declining ATM availability signals a shift towards digital transactions globally. In fact, Norway is projected to be the first fully cashless country in 11 years if cash machines continue disappearing at the current rate.

Kenya has long been at the forefront of digital payments in Africa, largely due to the success of M-Pesa, which revolutionized mobile money when it launched in 2007. Today, factors such as high mobile phone penetration, a rising banked population, and increasing financial literacy continue to push Kenya closer to a cashless economy.

South Africa is also progressing towards a less cash-reliant economy, supported by government policies promoting electronic payments. Despite a sizable unbanked population, research indicates that 95% of South Africans have made at least one digital payment. This widespread adoption of digital payment systems is a key driver of the country's transition towards a cashless economy.

However, challenges such as financial exclusion and the risk of service downtime still pose obstacles to a fully cashless system. Addressing these challenges will be crucial to ensuring that the benefits of a cashless economy are shared equitably among all members of society.

The implications of a cashless economy are far-reaching, with potential benefits including increased efficiency, reduced crime, and improved financial inclusion. As Kenya and South Africa lead the way in Africa, other countries on the continent are likely to follow suit, driving a significant shift in the way people live, work, and interact with each other.

In conclusion, the transition towards cashless economies in Kenya and South Africa marks a significant milestone in the evolution of digital payments in Africa. As the continent continues to leapfrog traditional payment systems, it is likely that we will see a proliferation of innovative fintech solutions that drive economic growth, improve financial inclusion, and enhance the overall quality of life for Africans.