#BizTrends2025: Discovery - Visa: 2025 the year of returning to the office

(Image supplied)

The Visa Discovery Bank SpendTrend 2025 report was released at a function at Discovery Place in Sandton today, 10 April, presented by Lineshree Moodley, country manager, Visa South Africa and Hylton Kallner, chief executive officer, Discovery Bank and Discovery South Africa.

“This year, again, the trend is the rise of convenience and busier lifestyles, but especially now with more and more people are going back to the office,” says Moodley.

“We spoke to about 764 companies, more than 80% said that they feel that by 2025 they will be back in office.”She adds that the return-to-work trend is global.

About the report, she says that we need to understand what consumers are expecting and how their needs are evolving so we can take propositions to market that resonate.

“For example, as people return to the office, we will see an increase in the rise of convenience.

“So how do you integrate some of these trends into the overall products and solutions that you're putting together for consumers?” she asks.

4 main trends

Moodley discussed four main trends highlighted in the report.

South African consumers continue to seek value from their purchases as macroeconomic conditions tighten.

This has meant:

- Spend has lagged inflation.
- Loyalty programmes and cards continue to thrive.
- Travel spend has slowed (by 3% on the previous year).
- Food and fuel are the biggest expense.

"In Bloemfontein, East Lond and Gerbeque, while Johannesburg, Cape Town and Durban’s highest spend is on eating out.

“27% of South Africans expect to increase their visits to restaurants, with 32% saying that they will do takeout at least once a week,” says Moodley.
She adds that the data shows that the increase in online grocery shopping that started in the pandemic has accelerated.

Why this matters:

- Consumers are seeking ways to maximise their purchasing power as they become more conscious of their spend.
- Financial institutions can provide significant value to consumers by analysing customer behaviours and preferences and tailoring benefits to increase retention, cross-sell opportunities and overall satisfaction, leading to higher customers' lifetime value.

The rise of convenience and busier lifestyles as consumers return to work. This is a global trend.

This has meant:

- Online grocery shopping has increased.
- Dining out is growing faster.
- Takeout orders are growing.
- Growth in fuel spend is up (by 9% on the last year's report).

“We now see that online shopping is growing at 15% whereas face to face, that is going into the store, only grew by 6%,” comments Moodley.

Why this matters:

- As consumers are mandated to return to the office, convenience becomes increasingly important to balance work and life demands.
- Financial institutions need to build an understanding of behaviours, needs, lifestyle patterns and expectations of existing and potential customers to inform their customers' strategy to drive constraints.

Digital payments continue to grow as consumers find comfort in increased security.

This has meant:

- Digital wallet spend has increased.
- 68% of consumers are expected to sue digital payments in the next 12 months.
- Omni-channel shopping experiences are growing globally. 40% of consumers buy online but pick up in store while 60% of consumers will see if a product is available online and then buy it instore.
- 41% of South African consumers shop online.
- South Africans are transacting and spending online on international platforms.

“Digital payments continue to grow as customers find comfort in increased security. We saw these accelerate in the pandemic, and trust, security and convenience have all contributed to the explosion in this sector,” says Moodley.

Globally, she says 76% of consumers say they mostly and completely trust digital payments.

“In South Africa, the share of digital wallet purchases further increased by 9%, and interestingly, in the previous report, it was a similar percentage. “68% of South Africans says they are expecting to use more digital payments in the next 12 months,” she quotes.

She adds that this has added to the growth of the e-commerce sector in South Africa.

Why this matters:

- Consumers are more likely to adopt and use digital payment methods when they feel their financial information is secure and protected from fraud, theft and unauthorised transactions.
- Financial institutions that prioritise security around digital platforms through strong controls or measures and provide consumers with financial education on security enhance their reputation and brand loyalty as consumers then trust in the financial institutions they work with.

South Africans are taking up a wider range of subscription services.

This has meant:

- Subscription spend has expanded with new categories such as AI, sports betting, groceries and e-commerce.
- The share in AI subscribers in 2024 grew three times the number compared to 2023.
- E-commerce shares in subscription spend grew by two percent in 2024.

Moodley says that last year, they saw a big take-up of subscription services.

“It was one of the biggest categories we saw in terms of growth, but most of it was related to streaming subscriptions.

"This year, we've actually seen a lot of diversity, with consumers spending on online media, AI, groceries and e-commerce.

“Previously, AI subscriptions made up about 8% of all subscriptions. This year, that has increased significantly - over three times compared to 2023.

“Online media that has increased its share quite significantly as well as e-commerce subscriptions.”

The research shows that 62% of South Africans use three or more different streaming services, and 29% of South Africans are willing to pay for a subscription service if they have discounts or exclusive offers.

Why this matters:

- As more and more consumers set up ever-increasing recurring payments for services, they potentially lose track of their spending on subscriptions.
- Financial institutions are increasingly stepping in to provide consumers with services to easily manager subscriptions and giving consumers more control.