• Standard Bank says 74% of township businesses use WhatsApp to trade, showing it's the top tool for small business owners across South Africa.

• Experts say township shops still prefer cash payments, but more are using card tools like Flash, Kazang and Shop2Shop to serve customers.

WhatsApp has become the number one digital tool for township businesses in South Africa.

A new report from Standard Bank found that 74% of small and medium enterprises use WhatsApp to reach customers, while Instagram is used by 47%. Websites and business apps are still rare.

The Township Informal Economy Report looked at businesses providing more than 7,500 jobs in Gauteng, KwaZulu-Natal, the Western Cape, Limpopo and the North West between March and May this year.

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Standard Bank senior manager Nokhanyo Ntshingila said WhatsApp is popular because it's cheap and easy to use. "It's easy and affordable, but tools like websites and business apps make a business look more serious and professional," she said, MyBroadband reported.

Ntshingila said closing the digital gap will need affordable tools, proper training and incentives to help small businesses grow online.

Informal economy expert GG Alcock said township businesses are thriving online using what's already on their phones. Many take food or product orders on WhatsApp, receive a customer's pin location, and get paid in cash on delivery.

"These are the apps that come with most entry-level smartphones, and people are using them in ways that suit their lives," said Alcock.

While more businesses are going digital, cash still rules. Most customers prefer it because of high banking fees and limited digital know-how.

But that's slowly changing. Yebo Fresh found more township shops now use card payment services like Flash, Kazang and Shop2Shop -- especially spaza shops and small wholesalers.

"Cash is still king," said Yebo Fresh CEO Jessica Boonstra.