SpendTrend24: A glimpse into SA’s economic resilience and adaptability

From purchasing groceries and fueling up, to retail indulgences and travel, South Africans across the economic spectrum – from everyday consumers to affluent individuals – are transforming their spending habits.

Mapping global trends

The SpendTrend24 report, a collaborative effort between Visa and Discovery Bank, not only maps its own clientele’s spending habits, but also extends its reach to include data from 14 cities around the world, analysing over 13 billion transactions from 60 million credit cards.

Key findings

The report reveals that despite the complexities of a challenging global economy, including rising inflation and interest rates that have escalated living costs, South Africa’s resilience shines through, with stable year-on-year spending trends and less volatility compared to other markets.

Says Discovery Bank CEO Hylton Kallner: “The ability of organisations, industry leaders and entrepreneurs to understand and adapt to their customers’ priorities may well mark the difference between stagnation and success. This year’s report builds on the learnings of the 2023 edition to uncover even more relevant insights into consumer spending behaviours.”

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Using credit for rewards and savings

The SpendTrend24 report highlights trends across three areas: how much and how people spend, and what they’re spending on. Consumers worldwide are becoming more budget-conscious and prioritising value as their disposable income growth struggles to keep pace with inflation. In South Africa, while consumer spend growth exceeded inflation by 19% in 2022, it’s growth closely matched inflation in 2023, falling short by 2%. Faced with ongoing high inflation, consumers are increasingly cautious, opting for credit cards over cash not just for credit access but also to take advantage of the rewards and benefits offered.

Compared to the average South African, Discovery Bank clients spent a larger portion of their money on categories like holidays and dining out. By using their credits cards, they benefited significantly from rewards and savings linked to these purchases.

In 2023, Discovery Bank clients saved over R670m on discounted flights, car hire and accommodation through the Vitality Travel platform, and earned over R300m back in Discovery Miles on healthy grocery purchases with Vitality partners.

Digital adoption

SpendTrend24 also explores the impact of digital transformation on consumer behaviour, noting a significant increase in the use of digital wallets, online purchases, and contactless payments. South Africa, in particular, is leading the way in this digital shift, showing the potential for technology to drive economic growth and financial inclusion.

For instance, South African spend growth in 2023 for online outpaces in-store by five times. A survey by 4Sight revealed that 82% of South Africans made at least one online purchase last year. Yet despite this trend, Euromonitor’s research indicates that South Africans still value physical shopping experiences, enjoying visits to shopping malls and browsing in stores, even if they don’t intend to buy anything. Many also compare prices online regularly, but prefer shopping in-store for the immediacy of purchase.

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These are just some of the valuable insights of consumer habits drawn from the SpendTrend24 report that Kallner notes will help “stakeholders across various sectors intelligently and adeptly seize opportunities that speak to consumers’ real needs and values – fostering a more prosperous economy for us all.”

Adds Lineshree Moodley, Visa’s country manager: “At Visa, we share Discovery Bank’s passion to leverage data-driven insights that drive tangible value for clients. We believe SpendTrend24 will serve as a compass in guiding stakeholders towards more informed and actionable strategies. Our aim is to spark meaningful dialogue and initiatives that bolster the economic security of individuals and businesses in South Africa.”