South Africans are increasingly turning to digital payments for everyday purchases, and new figures from FNB point to a significant shift in how customers transact.
The bank has reported a 47% increase in virtual card transaction values over the past financial year. The growth comes as FNB’s digital ecosystem serves more than 19 million regular platform users and over 12 million banking customers.
From online shopping and subscriptions to travel bookings and in-store purchases, virtual cards are becoming an increasingly important part of customers’ payment habits.
For FNB, the trend reflects a growing demand for payment solutions that combine convenience, security and greater control.
Digital payments gain momentum
The rise in virtual card spending forms part of a wider increase in digital banking activity.
FNB reported a 7% year-on-year increase in digital transactions, while transaction volumes on the FNB Banking App grew by 10%.
These figures highlight the role digital platforms play in customers’ everyday financial activities. Customers can manage payments and access banking services through digital channels, reducing the need to rely solely on traditional payment methods.
Philani Potwana, Managing Executive of FNB Private Everyday Banking, says the growth reflects changing customer expectations.
“The growth in virtual card usage highlights how rapidly customer payment behaviour is evolving. Today’s customers expect payment experiences that are simple, secure and available wherever they choose to transact, whether online, in-store or through their preferred digital wallets. Virtual cards have become a cornerstone of digital payments because they combine convenience with enhanced security and greater control. The 47% increase in transaction values reflects growing customer confidence in digital payment solutions and reinforces our commitment to delivering innovative payment experiences that make banking easier and more rewarding for customers.”
How FNB Virtual Cards add another layer of security
Convenience is important, but security remains a key consideration when customers make digital payments.
FNB Virtual Cards can only be directly accessed through the FNB Banking App. They also feature a dynamic Card Verification Value (CVV) that changes regularly, adding another layer of protection for online purchases.
This feature helps reduce the risks associated with compromised card details, particularly for card-not-present transactions, where a physical card is not presented to the merchant.
Potwana explains that these features are designed to give customers greater confidence when paying digitally.
“Security is one of the biggest considerations for customers when making digital payments. Virtual cards provide enhanced protection because card details are stored securely within the app, while customers can access the dynamic CVV whenever they need it for online purchases. This significantly reduces risk and gives customers greater confidence when transacting digitally.
“Combined with the ability to instantly freeze or unfreeze cards, manage spending controls and monitor transactions through the FNB Banking App, virtual cards place more control directly in customers’ hands. In an increasingly digital world, customers want payment solutions that deliver both convenience and peace of mind.”
The app also allows customers to manage their card settings and monitor transactions, giving them tools to oversee their spending.
From online shopping to everyday tap-and-go payments
FNB Virtual Cards are digital cards linked to qualifying accounts. Customers can add them to supported digital wallets and make contactless payments using compatible smartphones, smartwatches and other enabled devices.
This allows virtual cards to be used beyond online purchases. They can also support everyday in-store payments through compatible digital wallets.
As adoption grows, FNB says customers are moving from occasional virtual card use towards making these payments part of their regular spending habits.
Jason Viljoen, Head of Digital Payments at FNB, says the figures point to a broader change in consumer behaviour.
“The data further tells a compelling story about changing consumer behaviour.
“We are seeing digital payment solutions move from being an alternative payment method to becoming embedded in customers’ everyday transaction habits. Strong growth in virtual card spending, combined with increased digital engagement across the FNB App and other digital channels, shows that customers increasingly value solutions that offer convenience, speed and security.”
Viljoen also highlights the importance of security as customers become more active across digital channels.
“Our insights show that customers are becoming increasingly aware of the importance of digital payment security. Our Virtual Card’s and dynamic CVVs help mitigate common fraud risks associated with card-not-present transactions, while maintaining a seamless payment experience. As customers become more digitally active, security features like these play an increasingly important role in driving adoption.”
How eBucks rewards are encouraging virtual card use
Rewards are also contributing to the growing use of FNB Virtual Cards.
According to the bank, aligning eBucks rewards with virtual card usage has helped encourage customers to move everyday spending towards these digital payment methods.
The rewards structure links Virtual Card transactions to rewards, reward-level progression and partner-specific earning opportunities.
FNB says this has supported increased usage across categories such as groceries, fuel, health and lifestyle. It has also strengthened customer engagement with the wider eBucks ecosystem.
The approach demonstrates how rewards can encourage customers to change their payment habits while supporting digital adoption and adding value to everyday spending.
For customers, the combination of digital payment functionality and rewards creates another reason to consider using a virtual card for qualifying purchases.
FNB focuses on the digital-first banking experience
The growth in virtual card transaction values, alongside increased activity on the FNB Banking App and across other digital channels, signals the expanding role of digital payments in the bank’s ecosystem.
FNB continues to focus on payment solutions designed to make transactions more convenient, intuitive and secure.
Potwana says the bank intends to keep developing its digital capabilities as customer expectations evolve.
“As the payments landscape continues to evolve, our priority remains on enabling customers to transact with confidence through secure, intuitive and innovative solutions. By continuously enhancing our digital capabilities, we are helping customers navigate and participate more effectively in a digital-first economy,” he concludes.
With virtual card transaction values up 47%, digital transactions rising 7% year-on-year and FNB Banking App transaction volumes increasing by 10%, the latest figures show how digital payment solutions are becoming more prominent in everyday banking.
The next phase of this shift will depend on how customers continue to balance convenience, security, spending control and rewards as they manage their money in an increasingly digital world.
