South Africans Ditch Bank Cards As Digital Wallet Payments Surge

South Africans are embracing digital wallets at an unprecedented rate, with recent financial reports from major banks in the country showing sharp declines in reliance on physical bank cards.

Apps such as Apple Wallet, Google Wallet, Samsung Wallet, Garmin Pay, and SwatchPay allow users to link their bank cards and make secure, contactless payments directly from smartphones or smartwatches.

Instead of swiping or tapping a card, customers simply hold their device over a contactless terminal to complete transactions. These wallets not only make payments quicker but also add an extra layer of security through biometric verification, PINs, or passcodes — reducing risks linked to stolen cards.

South Africans Major Banks Drive Growth in Digital Wallet Adoption

South Africa’s biggest banks have been actively promoting digital wallet payments, with Capitec, Absa, Discovery Bank, FNB, Nedbank, and Standard Bank all offering support for the technology.

Capitec, which only introduced digital wallet compatibility in 2022, has seen explosive growth. In its 2025 financial year, the bank recorded: 167 million digital wallet transactions — up 159%. Transaction values of R34.2 billion — up 161% from R13.1 billion. One million customers using digital wallets — up 103%

Meanwhile, FNB reported a 45% increase in wallet transactions in 2025 and a 68% jump in virtual card spending, which already made up 11.5% of its card spend in 2024.

Nedbank also logged a 61% surge in digital contactless payments, while Discovery Bank revealed that over 60% of its clients now prefer digital wallets to physical cards.

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One reason behind this rapid adoption is accessibility. Initially, digital wallets were limited to high-end devices equipped with NFC (near-field communication) technology.

But as NFC support trickled down to mid-range and budget smartphones — and with the 2022 launch of Google Wallet in South Africa — millions more people gained access to mobile payments.

This shift has transformed how South Africans pay, with banks continuing to encourage the move toward digital solutions as a safer and more convenient alternative to traditional bank cards.

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