Spending habits shift as South Africans adapt to a value-conscious market

THE latest Absa Merchant Spend Analytics Report for the first quarter of 2025 has unveiled an unexpected trend in consumer behaviour: card spending growth is slowing, even as broader economic indicators show signs of recovery.

- SIPHELELE DLUDLA

This duality reflected a cautious consumer mindset as South Africans navigate new economic realities.

In this most recent quarter, card spending grew by just 7% while transaction volumes increased by 10%. While these figures are certainly positive, they mark a noticeable deceleration from the previous year, where spending and transactions soared by 9% and 12%, respectively.

Furthermore, the average value of each card transaction has dipped by 3% year-on-year, indicating that consumers are indeed still spending, but they are opting for smaller purchases.

"The Q1 data reveals that the consumer is not necessarily spending less, they're making smarterpurchasing decisions," said Isana Cordier, Head: ConsumerSector, Absa CIB.

"This shift signals a clear directive for businesses, which is to adapt to the value-based approach by offering competitive pricing, flexible purchase options, and meaningful loyaltystrategies to stay relevant and resilient in a price-conscious market."