This reflects not only Absa shifting financial priorities but also the rapid transformation of the gambling sector driven by technological advancements.

Isana Cordier, Managing Executive for the Consumer Sector at Absa Corporate and Investment Banking, noted that the bank’s internal data reveals a 6% month-to-month decline in total card spending, along with an 8% fall in transaction volumes.

“This aligns with historical trends, as internal data suggests that June typically experiences negative growth. Despite this decline, year-on-year performance showed a modest 2% increase, indicating some resilience in consumer activity over the longer term. Additionally, the average transaction value increased by 3%.” Cordier explained.

The numbers reveal a significant shift that card spending in the gambling sector surged 32% in 2022, even as transactions declined 25%. But 2023 marked a turning point spending jumped 52%, and the number of transactions more than tripled, rising by 211%.

Fast forward to June 2025, and year-to-date card spending in the gambling category has risen by 17%, although slower than the 24% growth recorded in the same period the previous year. Meanwhile, transaction volumes climbed by 16%, down from the explosive 52% growth in 2024.

The report underscores a clear trend in the shift of gambling formats. While in-store gambling has experienced a slight 1% year-on-year decline, online gambling has surged by an astounding 66%. Online gambling now accounts for 61% of transactions in this category, a significant increase from just 26% in 2022.

This growing engagement with gambling can be partially attributed to the broader socio-economic challenges faced by many South Africans. As households navigate rising living costs, a trend emerges where consumers often gravitate toward lower-value purchases.

The report highlights an evolving mindset in consumer behavior. Between the first half of 2022 and the first half of 2025, average transaction values have remained in negative territory for four consecutive periods, indicating a preference for smaller, more frequent purchases.

For retailers, Cordier advocates accommodating this shift, suggesting that success may lie in offering value-driven, small-ticket items. This sentiment was echoed during a recent panel discussion at the Absa Consumer Conference in Cape Town, where retailers noted an uptick in smaller purchases among consumers.

The report also notes that credit card usage continues to outpace debit card usage, a trend that may signal many consumers are turning to credit to manage rising living costs.

“While online spending remains strong, maintaining double-digit growth, in-store spending has slowed to just 1%. This decline is largely driven by the food category, which already has a high base of 48% year-to-date, down from 49% in June 2024, with minimal growth of 1% year-to-date from 3%,” the report states.

“In contrast, online food-related purchases surged by 49% (compared to 28% year-to-date in June 2024), although this category’s market share slightly dropped to 17% from 18% in the previous year.”


Source: iol.co.za