In 2026, South Africa’s banking sector has experienced substantial growth in the use of digital wallets and virtual cards, allowing individuals to engage in extensive transactions without the need for physical bank cards.
Recently, FNB disclosed a 47% rise in the transaction values associated with virtual cards among its customers over the previous year.
The bank noted that this rising popularity of virtual cards reflects a distinct preference among customers for digital methods when managing their finances, aligning with broader market trends.
Digital transaction volumes at FNB increased by 7% year-on-year, while transaction counts through the FNB banking app grew by 10%.
Philani Potwana, managing executive of FNB Private Everyday Banking, mentioned that virtual cards have emerged as vital tools for digital payments, owing to their ease of use, improved security, and enhanced user control.
“Unlike physical cards, FNB virtual cards can only be directly accessed within the FNB Banking App and feature a dynamic card verification value (CVV) that changes regularly,” the bank stated.
“This provides an additional layer of protection for online transactions and reduces the risk associated with compromised card details.”
However, it’s essential to understand that the rotating CVV feature is applicable solely for one-time online transactions. Recurring payments and in-person transactions utilizing digital wallets do not utilize this capability.
According to Jason Viljoen, FNB’s Head of Digital Payments, the data illustrates significant shifts in consumer patterns.
“We are seeing digital payment solutions move from being an alternative payment method to becoming embedded in customers’ everyday transaction habits,” Viljoen pointed out.
Since the introduction of these features, FNB has actively promoted the usage of digital wallets and virtual cards, offering customers enhanced eBucks rewards as an incentive.
While specific benefits associated with digital wallets have diminished, customers are now rewarded with eBucks at increased rates when they use their virtual cards for purchases like groceries and fuel at participating outlets.
Capitec’s recent interim results also demonstrated a significant surge in digital wallet usage, with the option to link them to both physical and digital bank cards.
The number of users harnessing Apple Pay, Garmin Pay, Google Pay, and Samsung Pay at Capitec jumped by 68%, rising to 2.4 million from 1.4 million in the same timeframe in 2025.
Moreover, spending through digital wallets soared by 87%, totaling R52.1 billion compared to R27.8 billion during the previous year’s corresponding period. Transaction volumes saw an increase of 66%, from 157 million to 260 million.
The major banks, including Absa, Nedbank, and Standard Bank, have also recorded notable increases in both digital wallet values and transaction volumes.
In its complete financial year that concluded on December 31, 2025, Nedbank reported that customers’ digital wallet expenditures rose by 71%, constituting 22% of overall card spending, up from 13% in 2024.
In the first quarter of 2026, Standard Bank’s customers spent 56% more via digital wallets compared to the same period in 2025.
Discovery Bank has also seen remarkable growth in the adoption of digital wallets and virtual cards, with over half of all card transaction values recorded through these platforms in 2025.
When considering in-store transactions specifically, this figure decreases to 30%, which remains significant given the relatively recent emergence of this technology.
Furthermore, a SpendTrend26 survey revealed that 85% of respondents held a virtual card, while 73% reported using them regularly.
During the 2025 Black Friday shopping period, Discovery Bank identified a growing preference among consumers for digital wallets and virtual cards as payment methods.
Approximately 66% of in-store card transactions made by Discovery Bank customers were completed using digital wallet payments during that time, while one-third of online shopping expenditures were conducted through virtual cards.
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