South Africans are more and more turning to digital financial institution playing cards for digital transactions to fight the specter of their fee data being compromised and falling into the fingers of criminals.
That is based on the SpendTrend2025 report launched by Discovery Financial institution and Visa on Thursday.
The report used a mixture of client spending knowledge and surveys, which in contrast spending traits in 2023 to these in 2024. The evaluation additionally adopted a longer-term view of how, when and what clients spent their cash on between 2019 and 2024.
“The rise of digital banking has modified how folks use cash and what they count on from banks, particularly as shoppers mix digital and in-store purchases and use new transaction strategies,” stated Hylton Kallner, CEO of Discovery Financial institution. “As cyberthreats rise globally, safety is essential and insights from SpendTrend25 verify shoppers are more and more involved about digital security.”
Based on the report, 45% of respondents to the survey use digital playing cards. The rewards connected to digital playing cards are one other driver of uptake, stated Discovery. Supporting knowledge gathered by Visa reveals that fraud incidents are six instances decrease with digital pockets transactions in comparison with bodily playing cards.
Customers are additionally making frequent use of their banking apps, which might deploy new digital playing cards in minutes, even for brand spanking new accounts. Discovery stated this function is resulting in clients making use of digital playing cards whereas they await bodily playing cards to be delivered to them.
On-line spending
“As fraudsters grow to be extra refined at focusing on on-line funds, digital playing cards are more and more being favoured for his or her enhanced safety and management over spend,” stated the report.
Coinciding with the expansion in digital card utilization is a rise in on-line spending. However South Africans should not merely swapping out their in-store purchasing expertise out in favour of on-line purchases. As a substitute, 21% of native consumers are mixing each modes of fee.
“Customers are embracing ‘phygital’ purchasing experiences equivalent to ordering merchandise on-line and choosing them up in-store or checking product availability on-line at close by shops earlier than buying,” stated the report.
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The end result of those modifications in client behaviour is a lower within the reliance on money as real-time digital funds take choice. Some 67% of survey respondents reported utilizing money a number of instances in a month or by no means utilizing it in any respect. Greater than 80% of respondents stated they go for card funds at any time when they will.
South Africans spend about 70% of their earnings on groceries, retail, journey, consuming out and takeout, and gasoline. Spending on consuming out and takeout grew by 13% 12 months on 12 months for in-person purchases in 2024, with on-line purchases rising by 10% over the identical interval.
Discovery Financial institution’s weekly distribution of complete in-store grocery transactions per hour for 2024 reveals that consumers are busiest on Sunday mornings between 11am and noon. Kallner stated Discovery has noticed a robust correlation between on-line purchasing and wholesome purchases, which the financial institution attributed to the shortage of candy temptations consumers are uncovered within the checkout isles at bodily shops.
South Africa’s gasoline spend grew by 5% 12 months on 12 months in 2024, in comparison with a 4% 12 months on 12 months drop in 2023. Kallner stated the widespread enactment of return-to-work insurance policies has led to fewer folks working from dwelling, which explains the uptick, with Discovery Financial institution shoppers spending 6% greater than the nationwide common in 2024. As is widespread within the banking sector, Discovery Financial institution’s rewards programme provides members extra rewards factors once they pay for gasoline utilizing digital strategies.
“As gasoline costs have steadied over the previous two years, there may be much less of a rush to refuel on Tuesdays forward of the Wednesday value hike. The favorite day for Discovery Financial institution shoppers to refuel remains to be the beginning of the weekend,” stated the report.
Regardless of the rise in digital transactions signifying that customers have developed extra belief within the system, fears over fraud and hacking are at an all-time excessive. Some 61% of respondents to the Discovery and Visa survey reported that they’re extra fearful about banking safety now than they had been a 12 months in the past, with 63% saying they personally know somebody who has been affected by fraud and 76% saying they often obtain spam e-mail.
“Whereas fraud is a significant concern, most individuals nonetheless belief banks to guard their cash and knowledge. Eighty-six % of respondents say fraud safety from their financial institution is important, and 80% say they’ve confidence of their financial institution’s fraud safety measures,” stated the report. – © 2025 NewsCentral Media
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