Business
Why More South Africans Are Swapping Bank Cards for Digital Wallets
Goodbye plastic, hello phone
For years, pulling out a card to tap or swipe was the norm at tills across the country. But new figures from South Africa’s biggest banks reveal that this is changing fast. More customers are ditching plastic altogether and paying with digital wallets on their smartphones and smartwatches.
Apps like Apple Wallet, Google Wallet, Samsung Wallet, Garmin Pay, and SwatchPay allow people to link their cards and simply hold their device near a payment terminal. It is quick, it is contactless, and most importantly, it adds a layer of security. Unlike cards, where thieves can rack up multiple small purchases before you block them, wallets require biometric or passcode authentication for every transaction.
Banks lead the push
Almost all major banks in South Africa now support digital wallets, with TymeBank the only exception. While early adoption was limited to pricey smartphones, the technology has since become more widely available as near-field communication chips filtered down to affordable models.
Capitec only joined the wallet wave in 2022, but it has already seen explosive growth. In the 2025 financial year, the bank recorded a 159% increase in digital wallet transactions, which hit 167 million. The value of those payments jumped from R13.1 billion to R34.2 billion, while the number of users doubled to over a million.
Other banks that entered the game earlier are also seeing steady growth. FNB reported a 45% jump in wallet transactions this year, while virtual card spend climbed 68% and already made up more than one in ten card purchases in 2024. Nedbank saw a 61% boost in digital contactless volumes in the first half of 2025, and Discovery Bank revealed that over 60% of its customers now prefer digital wallets to physical cards.
A shift in consumer behaviour
The surge is backed up by independent research. According to Stitch’s 2025 State of Consumer Payments report, nine out of ten South Africans have tried a payment method beyond cash or cards. Less than a third said they had not used a digital wallet at all in the past year.
This reflects a deeper shift in how people think about money. Convenience is king, but safety plays just as big a role. With fraud and theft an ever-present concern, many are turning to wallets for the peace of mind they offer.
A glimpse into the future
South Africa has long been seen as a cash-heavy society, yet these numbers tell a different story. From Capitec’s meteoric rise to FNB’s steady virtual card growth, the momentum is undeniable.
The days of the plastic bank card may not be over just yet, but the trend is clear: more South Africans are saying goodbye to the wallet in their pocket and hello to the one on their phone.
Also read: South Africa’s Data Bundle Debate: Why a Three-Year Expiry Could Backfire
Follow Joburg ETC on Facebook, Twitter, TikT
For more News in Johannesburg, visit joburgetc.com
Source: MyBroadband
Featured Image: CNBC
