Norman Nyawo | Head | Merchant Solutions | Business and Commercial Banking | Standard Bank South Africa | mail me |
Data from South Africa’s year-end trading period signals resilient consumer demand. It also highlights a strong foundation for continued growth in digital transactions across business and consumer segments.
As businesses of all sizes embraced digital payments, transaction volumes and values maintained strong momentum. The 2025 festive season trade results reflected this robust consumer activity. They reinforced optimism for continued growth in digital transactions.
Both transaction volumes and values grew by double digits. Digital transaction volumes rose by 10.5% year-on-year (YoY) to 74.15 million. Digital transaction value climbed by 10% YoY to R35.62 billion. This underscores the growing role of digital financial services in supporting business growth and consumer spending in groceries during South Africa’s busiest trading period.
E-commerce acceleration
The surge in South African digital commerce reached an unprecedented peak. E-commerce volumes grew by 40% YoY. This rapid acceleration signals a permanent shift in consumer behaviour.
Shoppers are moving away from traditional retail toward mobile-first, digital storefronts. For merchants, this growth represents a massive opportunity to scale. At the same time, it demands unified platforms that can handle increased transaction volumes across web and social channels without compromising speed or security.
Sector and regional growth highlights:
- Top sectors by turnover growth in December 2025:
- Grocery stores – up 23% YoY
- Food and convenience stores – up 12% YoY
- Top regions by turnover growth in December 2025:
- Gauteng – up 7% YoY
- Western Cape – up 23% YoY
- KwaZulu-Natal – up 10.5% YoY
The growth in grocery stores highlights strong consumer spending in grocery stores during the festive season. This trend signals both recovery and evolving shopping habits.
Consumer behaviour and digital payments
December’s spend reflects the strength of South Africa’s digital payments ecosystem. Consumers embrace convenience. Retailers scale online and on integrated platforms. Together, we are driving a more connected economy. This growth is not just about numbers; it is about trust, innovation and the future of e-commerce.
Aligned with the economic outlook for the year ahead, these trends open promising opportunities for South African SMEs. Online payments are increasingly a core business infrastructure.
Digital payments as core business infrastructure
-
Central to operations
Digital payments are no longer optional. Customers now expect the flexibility to pay anywhere – in-store, online or via social platforms. This ease of payment helps merchants sell more, speed up checkouts and retain a larger share of customers.
-
Unified systems
The line between online and in-store commerce has disappeared. Businesses increasingly rely on platforms that consolidate all sales channels into a single view, simplifying operations and improving customer experience.
-
Real-time payments
Traditional next-day settlement is becoming obsolete. Real-time payment rails, such as PayShap for Business, allow merchants to receive funds instantly. Immediate access to cash provides a critical advantage for SMEs managing daily expenses and inventory.
This instant capability also encourages greater consumer spending in groceries, as shoppers feel confident using payment options both in-store and online.
-
Embedded finance and transactional lending
A business’s payment history now functions as its credit score. This enables access to pre-approved loans and Buy Now, Pay Later (BNPL) solutions without carrying additional lending risk.
-
Social commerce and in-chat checkout
Social and messaging platforms are also becoming key sales channels. Businesses can now embed secure payment links within WhatsApp, Instagram and similar platforms. This allows transactions to be completed where customers already engage.
-
The arrival of agentic commerce
In 2026, “customers” are no longer only humans; AI agents also participate in commerce. Each customer’s personal AI can negotiate, select and purchase products on their behalf. Businesses must optimise operations to serve both human shoppers and AI buyers.
For example, for businesses to grow, SimplyBLU powered by Visa makes it easier. It is more than just a payment tool; it is an all-in-one platform. By consolidating every sale, online, in-person or mobile into a single interface, we enable merchants to scale without the friction of managing multiple systems.
Digital payments as a growth driver
As South Africa’s economy continues to evolve, digital payments are no longer just a convenience. They form the foundation of sustainable growth. We remain committed to empowering businesses of every size. Our secure, seamless and scalable solutions unlock new opportunities in the digital marketplace.
The surge in festive season spending is more than a seasonal success. It is a signal of a future where innovation, trust and financial inclusion drive prosperity. The increase in consumer spending in groceries and related retail sectors demonstrates how digital payments can shape enduring economic patterns for South Africans.
