Virtual cards now more utilised across South Africa

Even if inflation has decreased, consumer spending is lower, mostly due to high interest rates, with it trailing inflation by 5% points;

During the analysed period, as the cost of living is still high, consumers leveraged alternatives to reduce financial pressures, including utilising credit facilities and withdrawing from their retirement savings;

The largest spending category for mass market, mass affluent, and everyday affluent South African consumers remains groceries. On the other hand, high net worth individuals use their funds on retail and travel;

Average eating out and takeout spend growth is overtaking grocery spend expansion, with this move towards convenience still enabling individuals to prioritise healthy eating;

Digital wallet usage for in-store purchases has been on a growth path, as well as online spending. Additionally, consumers now tend to have more trust in their banks;

A decrease in travel spend per active card has been observed, however, more locals purchase online from international platforms;

South African consumers have been supporting an omnichannel shopping experience, with more of them choosing to order online and collect in-store or checking product availability online before purchasing in-store;

Fewer individuals leverage cash as their preferred payment method. Also, digital payments have been on a growing trend, with consumers looking for immediate payment options at an affordable price;

Online entertainment has seen a substantial increase, with it being the fastest-growing category in South Africa;

Subscription services have become more diverse, now including AI, sports bookings, groceries, and ecommerce.