Kenya and South Africa are poised to become the first countries in Africa to transition to cashless economies, driven by the widespread adoption of digital payment systems, mobile money, and contactless transactions. According to a study by Merchant Machine, using World Bank data, Kenya is expected to run out of cash machines in 28 years, while South Africa is estimated to follow in 32 years.

The move away from cash is not unique to Africa, as declining ATM availability signals a shift toward 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 toward 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 trend is expected to continue, driven by the convenience, security, and efficiency of digital transactions.

However, challenges such as financial exclusion and the risk of service downtime still pose obstacles to a fully cashless system. As these countries move closer to a cashless economy, it is essential to address these challenges and ensure that all citizens have access to digital payment systems.

The implications of a cashless economy are far-reaching, with potential benefits including increased financial inclusion, reduced crime, and improved economic efficiency. As Kenya and South Africa lead the way, other African countries are likely to follow, paving the way for a more digital and connected continent.

In conclusion, the transition to cashless economies in Kenya and South Africa marks a significant milestone in the region's digital transformation. As these countries continue to innovate and adapt to the changing landscape of digital payments, they are likely to emerge as leaders in the global fintech industry.