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The SpendTrend26 report by Discovery Bank and Visa has revealed that South Africans continue to spend more of their money on essentials while still rewarding themselves with small treats and travel when the budget allows.
The report analysed consumer spending in the country from 2021 to 2025 using credit card spending data.
“It combines Visa’s payment dataset with detailed transactional data from Discovery Bank,” the report states. “This allows the analysis to explore key dimensions of spending behaviour, including how much people spend, what people spend on, how people spend, and when people spend.”
How much people spend
The report revealed that consumer spending remained resilient in 2025 despite ongoing pressure on household budgets. This resilience is attributed to interest rate cuts by the South African Reserve Bank (Sarb), which helped ease borrowing costs and reduce debt-servicing pressure, providing some relief for households.
It was found that the number of new credit card accounts opened continued to grow faster than overall spending. The report said “this may suggest consumers are using a wider range of credit cards and payment options while engaging more actively with rewards and benefits”.
It is worth noting that resilience is increasingly shaped by how households adapt under pressure, using value, rewards and better planning and budgeting to make spending go further.
The report highlighted that 52% of South Africans actively look for bargains; 38% are willing to buy second-hand or previously owned items; and 40% regularly treat themselves to small products or services.
Food, transport and clothes take most of the money
SpendTrend26 report found that most households’ spending goes to groceries, retail, travel, eating out, takeaways, and fuel. This can suggest that everyday living costs continue to anchor household budgets.
“Rising living costs continue to influence how South Africans allocate their budgets,” reads the report. “Research by Euromonitor International shows that 86% of South African consumers are concerned about rising prices for everyday items, a sentiment unchanged from 2024.
“Rather than cutting spending dramatically, consumers are adjusting where and how often they spend to maximise value while managing financial pressure.”
The report highlighted that low to middle-income groups spend most on groceries, while the higher-income group spend most on retail and travel. At the city level, Johannesburg stands out for its relatively lower grocery share.
When people spend
The report found that spending in the country is usually shaped by key moments such as discount events, long weekends, celebrations and major sporting matches.
Black Friday drives the highest spending of any event, with most people spending on appliances, home, furniture, and general retail.
“This suggests consumers time big-ticket and bulk purchases to coincide with deep discounts,” reads the report.
SpendTrend26 found that during long weekends, most spending is on alcoholic drinks, followed by general retail and outdoor recreation. “Spending reflects stocking up, going out and making the most of time off,” reads the report.
Cash is still king
When it comes to how people spend, 64% of respondents said they still sometimes pay with cash, while 23% said they rarely use cash as a payment method. “This pattern suggests that cash is no longer the default, but rather a fallback option,” reads the SpendTrend26.
57% of respondents use cash for taxis, parking and tickets; 52% use it for tipping; 53% use it when connectivity or card machines fail.
SpendTrend26 found that online shopping is growing rapidly. Johannesburg (92%) and Cape Town (90%) lead increased usage.
Online entertainment remains one of the fastest-growing digital spend categories, with strong momentum continuing into 2025. “Transactions grew 21% in 2024 and a further 17% in 2025, reflecting sustained demand across streaming, sport and emerging digital services,” reads the SpendTrend26.
