South Africa’s banking landscape is undergoing a noticeable shift as more consumers adopt digital payment methods that do not rely on physical bank cards. While traditional banking infrastructure remains central to the country’s financial system, smartphones and mobile banking platforms are becoming increasingly important tools for daily transactions.
The trend reflects a broader change in how people manage their money, shop, and access services. Mobile devices are now widely used for financial tasks, offering convenience and efficiency that physical cards cannot always match.
Banks across South Africa are reporting strong growth in digital wallet activity. Capitec, the country’s largest bank by customer numbers, recorded a 159% increase in digital wallet transaction volumes and a 103% rise in the number of users.
The value of digital wallet transactions among Capitec clients also grew significantly, rising from R13.1 billion to R34.2 billion, a 161% increase. Although Capitec adopted digital wallets later than some competitors, this approach reflected the realities of its target market. Many lower- and middle-income customers did not initially have devices capable of supporting NFC payments.
Banks that have supported digital wallets for longer periods continue to see steady growth. Discovery Bank reported that increases in digital wallet usage and spending per customer exceeded its overall customer base growth in the second half of 2024.
Mobile phones remain the most common device for digital wallet payments, followed by smartwatches. The bank noted that customers tend to use these wallets for smaller transactions but do so more frequently.
FNB has also recorded notable increases. Between 2023 and 2024, digital wallet volumes rose by 74%, followed by a further 45% increase between 2024 and 2025. Transaction values reached R98 billion. The bank encourages adoption through incentives such as its eBucks rewards programme, which offers points to customers who use digital payment methods.
What is driving the move away from physical bank cards?
Cross-border payment infrastructure platform Thunes has analysed South Africa’s transition toward digital wallets and found that smartphone access plays a key role. For many households, mobile devices serve as the primary gateway to banking, shopping, and public services.
Even among people who hold traditional bank accounts, there is a growing preference for managing everyday finances through mobile apps and connected wallets. These platforms allow users to handle payments, transfers, and other transactions without needing a physical card.
How do digital wallets support financial inclusion?
Digital wallets also offer an alternative for people without formal bank accounts. Thunes highlighted that unbanked individuals can use mobile-based tools to send money home and complete other transactions using only a mobile number.
As more features are added, these platforms are evolving beyond simple payment tools. They are gradually becoming multifunctional services that combine financial management with everyday digital activities
Are super-apps becoming central to daily life?
The development of super apps is influencing how consumers interact with financial services. Thunes noted that in South Africa, certain applications are increasingly acting as a central hub for users’ financial and everyday needs.
Many consumers find it difficult to manage multiple apps that require different logins, fee structures, and interfaces. The convenience of accessing transport payments, online purchases, shared expenses, and credit services on a single familiar platform is proving appealing.
Why are banks encouraging the use of digital wallets?
Beyond convenience, banks are promoting digital wallets because of their added security features. Tokenisation and biometric authentication provide layers of protection that reduce reliance on physical cards and traditional PIN-based systems.
All major banks have taken steps to encourage customers to adopt these technologies, recognising their potential to streamline transactions and reduce fraud risks.
