Business
CONSUMER SPENDING SPARKS A DIGITAL PAYMENTS BREAKTHROUGH IN SOUTH AFRICA
CONSUMER SPENDING SPARKS A DIGITAL PAYMENTS BREAKTHROUGH IN SOUTH AFRICA
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BY: TANA MALINGA
South Africa’s festive season did more than boost retail sales, it confirmed a major change in how people pay, shop, and do business. New figures from Standard Bank show that higher spending, especially on groceries and food, has pushed digital payments into the centre of everyday commerce.
As more consumers and businesses choose digital first payment options, both transaction volumes and values have grown strongly, setting the pace for continued growth into 2026.
Digital Payments Reach New Records
During the 2025 year-end trading period, digital payment activity climbed sharply:
Transaction volumes increased by 10.5% year-on-year, reaching 74.15 million transactions
Transaction value rose by 10% to R35.62 billion
These numbers show how deeply digital payments are now woven into daily consumer spending and business operations. The festive season, South Africa’s busiest retail period, once again reflected broader economic behaviour, highlighting strong consumer demand and a fast growing digital economy.
Online shopping showed even stronger momentum. E-commerce transaction volumes jumped by 40% year-on-year, proving that online retail is no longer a secondary option, but a main channel. Consumers are increasingly choosing mobile and online platforms, pushing merchants to scale quickly or risk being left behind.
Grocery and Food Retail Drive Growth
December spending confirmed the strength of essential retail sectors:
Top sectors by turnover growth
Grocery stores: +23% year-on-year
Food and convenience retailers: +12% year-on-year
Top-performing regions
Western Cape: +23% year-on-year
KwaZulu-Natal: +10.5% year-on-year
Gauteng: +7% year-on-year
These trends highlight rising consumer confidence and the growing need for digital payment solutions across everyday retail.
“December’s spend reflects the strength of South Africa’s digital payments ecosystem,” said Norman Nyawo, Head of Merchant Solutions for Business and Commercial Banking at Standard Bank South Africa. “Consumers want convenience, retailers are expanding online and integrated platforms, and together we are building a more connected economy. This growth is not just about numbers, it’s about trust, innovation, and the future of e-commerce.”
Digital Payments Become Essential Infrastructure
What was once an extra feature is now critical. Digital payments are no longer optional, they form the backbone of modern business.
Key trends shaping commerce in 2026 include:
Unified Commerce: Online and in-store shopping are now fully connected, requiring one integrated payment system across all channels.
