The 2025 festive season confirmed that cashless commerce is no longer a trend but a structural feature of the economy with data from Standard Bank showing double-digit growth in transaction volumes and values. This signals that digital payments have become central to how businesses sell, scale and manage cash flow.
Norman Nyawo, head of merchant solutions at Standard Bank South Africa, said the festive season data underscores a broader shift in how businesses and consumers transact.
“South Africa’s year-end trading results show that digital payments are not just growing, they are accelerating. During the 2025 festive season, Standard Bank recorded double-digit growth, with transaction volumes rising by 10.5% year-on-year and transaction values increasing by 10%,” Nyawo said.
Digital transaction volumes rose to 74.15 million during the period, while transaction values climbed to R35.62 billion. The performance highlights how digital financial services are increasingly supporting business continuity and consumer demand during South Africa’s busiest trading season, particularly as businesses scale across multiple sales channels.
E-commerce emerged as a standout performer, with transaction volumes surging by 40% year-on-year. The acceleration points to a permanent shift in consumer behaviour away from traditional retail formats towards mobile-first and online shopping.
“E-commerce’s growth confirms a structural change in how South Africans shop,” Nyawo said, noting that convenience, speed and trust have become central to purchasing decisions.
Essential retail categories led turnover growth in December 2025, reflecting the strength of everyday consumer spend.
Grocery stores recorded a 23% year-on-year increase in turnover, while food and convenience stores grew by 12%. Regionally, the Western Cape delivered the strongest performance, with turnover up 23%, followed by KwaZulu-Natal at 10.5% and Gauteng at 7%.
“For businesses, especially SMEs, the message is clear—digital payments have become core business infrastructure,” Nyawo said. “Customers expect to pay anywhere, anytime, whether in-store, online or via social platforms.”
As consumer expectations evolve, merchants are increasingly seeking unified payment systems that consolidate online, mobile and in-store sales into a single operational view. This shift has also heightened demand for real-time settlement solutions such as PayShap for Business, which provide instant access to funds and improve cash flow management for small and medium-sized enterprises.
“Merchants need unified platforms and real-time settlement through tools such as PayShap, which are reshaping cash flow management,” Nyawo said.
He added that immediate access to funds is critical for businesses managing inventory, payroll and day-to-day expenses.
Beyond payments, the festive season data points to the growing role of embedded finance and transactional lending. A business’s payment history is increasingly used as a measure of creditworthiness, allowing merchants to access pre-approved funding and offer Buy Now, Pay Later options without carrying lending risk.
At the same time, social commerce is gaining momentum, with secure in-chat payment links enabling businesses to complete sales directly within platforms such as WhatsApp and Instagram.
Looking ahead, Nyawo said the next phase of growth will be shaped by AI-driven agentic commerce, where customer AI agents will increasingly select, negotiate and complete purchases on behalf of consumers.
“In this environment, merchants will need to optimise not only for human customers but also for AI buyers,” he said.
Against this backdrop, Standard Bank’s SimplyBLU platform, powered by Visa, is positioned to support merchants navigating this shift.
“Our SimplyBLU platform brings all of this together, enabling merchants to scale seamlessly across in-store, online and mobile channels,” Nyawo explained.
“The growth we are seeing is not just seasonal,” Nyawo said. “It signals a future driven by innovation, trust and digital inclusion, accelerating opportunities for businesses across South Africa.”
azwi@vutivibusiness.co.za
