Virtual Bank Cards Are Going Mainstream In South Africa

This is according to the SpendTrend2025 report released by Discovery Bank and Visa on Thursday.

The report used a combination of consumer spending data and surveys, which compared spending trends in 2023 to those in 2024. The analysis also adopted a longer-term view of how, when and what customers spent their money on between 2019 and 2024.

"The rise of digital banking has changed how people use money and what they expect from banks, especially as clients blend digital and in-store purchases and use new transaction methods," said Hylton Kallner, CEO of Discovery Bank. "As cyberthreats rise globally, security is critical and insights from SpendTrend25 confirm consumers are increasingly concerned about digital safety."

According to the report, 45 of respondents to the survey use virtual cards. The rewards attached to virtual cards are another driver of uptake, said Discovery. Supporting data gathered by Visa shows that fraud incidents are six times lower with digital wallet transactions compared to physical cards.

Coinciding with the growth in virtual card usage is an increase in online spending. But South Africans are not simply swapping out their in-store shopping experience out in favour of online purchases. Instead, 21 of local shoppers are blending both modes of payment.