Tap. Pay. Go. Why South Africans are ditching cash for digital payments

SpendTrend25, the latest edition of Discovery Bank and Visa's consumer insights series, tracks five years of local and global spending behaviour. One key takeaway? Digital payments aren't just the future - they're already the preferred way to pay.

Cash is being left behind

More than eight in ten South Africans say they prefer using cards or digital payment methods whenever possible - and younger clients are driving this change. In fact:

• Two-thirds of people say they use cash only a few times a month or never.
• Even among those aged 51 and older, 81% report seldom using cash.
• When cash is used, it's typically only for small or informal purchases.

Why more people are going cashless

The shift away from cash isn't just about following trends. It's driven by real benefits. A staggering 96% of people now say they prefer digital or card payments over cash. And 68% believe that digital payments are better specifically because they offer:

• Convenience - faster checkouts, no need to carry change.
• Security - less risk of theft or loss of your money.
• Budget control - easier tracking through apps and notifications.
• Rewards - you can't earn Ðiscovery Miles at all using cash, but using a physical Discovery Bank credit card can earn you Ð1 per R200, while using a Discovery Bank virtual card can earn you up to Ð1 for every R15 you spend online or in-store! You can then spend your Ðiscovery Miles at a host of Discovery Bank partners and sometimes get further discounts when you use Ðiscovery Miles to pay.

So how are people paying instead?

With their phones and smartwatches. As more retailers adopt contactless systems and trust in mobile tech grows, digital wallets are fast becoming the go-to method for everyday purchases.

What exactly is a digital wallet?

A digital wallet stores a digital version of your physical or virtual card on your smartphone or smartwatch. Once set up, it lets you make fast, contactless payments simply by tapping your device - no cash or even card required. Popular digital wallets include:

• Apple Pay
• Fitbit Pay
• Garmin Pay
• Google Pay
• Samsung Pay
• SwatchPAY!

You can link your Discovery Bank virtual card or physical card to any of these wallets for seamless tap-to-pay functionality.

South Africans are tapping into the trend

The numbers speak volumes:

• In 2024, digital wallets' share of in-store purchases grew by another 9%, mirroring 2023's growth.
• According to the PayFast State of Pay 2024, digital wallets now account for 22% of all transactions - and this figure is climbing.

The digital wave is strongest in the cities

In Johannesburg and Cape Town, digital payments are fast becoming the norm, using digital wallets for in-store purchases nearly twice as often as the national

average (1.94 times more), followed by Cape Town (1.80 times) and Pretoria (1.47 times). In fact, most major cities - except East London - are ahead of the national curve in embracing mobile payments.

Shoppers want payment experiences that are fast, simple and seamless - whether they're online, in-store, or somewhere in between.

Clients like you are ahead of the curve

Discovery Bank's digital-first ecosystem is designed for how people live and transact today. Clients enjoy:

• Real-time payments
• Instant virtual card issuance
• Easy integration with digital wallets
• Layered security and smart money tools

It's the smart, secure and future-ready way to pay - and it's already in your pocket.

The Future of Banking. Now.

• * This article is meant only as information and should not be taken as financial advice. For tailored advice, please contact your financial adviser.
• *Điscovery Miles do not constitute currency or any other medium of exchange in circulation in South Africa. Rewards are based on your engagement in Vitality programmes, Discovery products, and monthly qualifying card spend. Discovery Bank, Auth FSP. Limits, terms and conditions apply.