JOHANNESBURG - South Africans are tightening their belts when it comes to spending, but not in the way you might expect.
This comes as people are reshaping where every sent goes, even as new trends emerge, Hylton Kallner, CEO of Discovery, said.
Discovery Bank and Visa released a survey on spending trends using payments across millions of credit cards between 2021 and 2025.
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The study was carried out on a survey of 1000 credit-card holders across the country earning above R100, 000 a year.
According to Kallner, this is a mass affluent market segment.
Weight-loss drug: A force reshaping spending
According to Kallner, in this segment, the response rate indicates that one in seven or 14% of the households that were surveyed had at least one person in a house that are using prescribed weight-management drugs often lumped under the term GLP1-Drugs.
Key types include, but are not limited to, Semaglutide, such as Ozempic and Wegovy.
Semaglutide is a prescription medication used for weight loss and management, type 2 diabetes treatment, or to reduce the risk of a major cardiovascular event.
Research by the World Health Organisation (WHO) flagged to health-care professionals and regulatory authorities the risk of non-arteritic anterior ischemic optic neuropathy (NAION) associated with the use of semaglutide medicines.
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According to the study, NAION is a leading cause of vision loss in adults and the second most common optic neuropathy after glaucoma.
“It typically presents as sudden, painless, monocular vision loss accompanied by optic disc edema. The vision loss is generally irreversible, and there is currently no effective treatment available,” the research said.
Healthy diet peaking
Among the households using these medications, Kallner said what was really positive is the adjacent findings that came with that 59% is spending more on healthy food, while 48% less on takeaways, and 45% say they spend less on alcohol.
“This is allowing for a healthier diet and a focus on nutrition. Holistically, what we are seeing is a focus on health, weight loss, nutrition, and how people are managing this through lifestyle and behavioural change,” he said.
Online betting is still around
Another spending pattern observed was online betting, which is still a very common trend, overtaking in-person gambling.
Almost 46% of those who bet claim they have been spending less than they did 12 months ago, while 24% said they are spending more.
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At least 43% say they actively set a strict budget, while 46% view betting for entertainment, including sporting events.
Events and celebrations still draw big spenders.
Events and celebrations continue to run thick in the blood of South Africans, with the study further revealing that they remain key drivers of big spending.
From Black Friday weekends, to sports matches, long weekends, as well as celebration drives like Valentine’s Day, which keep florist shops.
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Overall, Kallner said it is very important to understand the kind of financial health of the individual to monitor whether the use of credit or debt is being taken on, which would indicate unhealthy financial habits.
“As a bank, we have an obligation to assist our clients to reach out to give them education and help them to ensure that they minimize their risk. And so we would look to the regulator to ensure that there's responsible behavior given the increase that we've seen as a bank.