South African consumers are increasingly embracing digital payments, with virtual bank cards and mobile wallets becoming a more prominent part of everyday spending. Recent figures from several major banks suggest that customers are changing how they pay for groceries, fuel, online purchases and in-store transactions.
Although physical bank cards remain available, the rapid growth of digital alternatives is reducing the need to carry a card for every purchase.
FNB reported a 47% year-on-year increase in the value of transactions made with its customers’ virtual cards. The bank also recorded a 7% rise in digital transactions overall, while activity on its banking app increased by 10%.
The figures highlight the growing role of mobile banking in customers’ financial lives. Instead of relying exclusively on traditional cards, consumers can use digital payment tools that are accessible through their smartphones.
Virtual cards offer convenience and additional security
FNB Private Everyday Banking managing executive Philani Potwana said virtual cards had become an important part of digital payments because they offer convenience, security features and greater control over transactions.
Unlike a physical bank card, an FNB virtual card is accessed directly through the bank’s mobile application. It also uses a dynamic card verification value, or CVV, which changes regularly.
This feature can provide additional protection for eligible online purchases by reducing the usefulness of compromised card details. However, customers should understand its limitations. The rotating CVV is primarily relevant to one-off online transactions and does not apply in the same way to recurring payments or in-store purchases made through digital wallets.
FNB’s digital payments head, Jason Viljoen, said the data reflected a broader shift in consumer behaviour, with digital payment services becoming part of customers’ normal spending routines rather than simply serving as an alternative to conventional cards.
The bank has also used its eBucks rewards programme to encourage digital payment adoption. While dedicated digital-wallet incentives have been withdrawn, customers can still qualify for enhanced rewards when using virtual cards at participating partner outlets for eligible purchases, including groceries and fuel.
Major banks report strong growth in digital wallets
FNB is not the only South African bank experiencing this shift. Capitec’s interim results showed that the number of its customers using Apple Pay, Garmin Pay, Google Pay and Samsung Pay increased by 68% to 2.4 million. The comparable figure for the same period in 2025 was 1.4 million.
Spending through these digital wallets rose by 87%, from R27.8 billion to R52.1 billion. Transaction volumes also climbed by 66%, increasing from 157 million to 260 million.
Other major banks have reported substantial gains. Nedbank’s digital-wallet spending increased by 71% in the financial year ending 31 December 2025, accounting for 22% of total card spending, compared with 13% in 2024.
Standard Bank recorded a 56% increase in customer spending through digital wallets during the first three months of 2026 compared with the corresponding period a year earlier.
Discovery Bank has also seen significant adoption. More than half of its card transaction value in 2025 was processed through digital wallets or virtual cards. For in-store purchases specifically, the proportion was 30%.
The bank’s SpendTrend26 survey found that 85% of respondents had a virtual card, while 73% said they actively used one. During the 2025 Black Friday shopping period, around 66% of Discovery Bank customers’ in-store card transactions were made through digital wallets. Virtual cards accounted for approximately one-third of online shopping spend.
These figures point to a growing preference for payment methods that can be managed through digital banking services. For consumers, the appeal includes convenience and additional payment options, while banks are increasingly building digital tools into their everyday services.
Physical cards have not disappeared, and the data does not suggest that banks are about to stop issuing them. Instead, South Africa appears to be moving towards a more flexible payment environment in which physical cards, virtual cards and digital wallets operate alongside one another.