Nearly 7 in 10 South Africans Remain Optimistic About Finances Amid Rising Costs and Fraud Risks

• 68% of South Africans are optimistic about their household finances in the next 12 months, despite persistent inflationary pressures
• 75% expect their household income to increase over the next year, but 36% expect to be unable to meet their bill and loan payments in full
• Younger generations show the strongest engagement with credit, with Gen Z and Millennials most likely to use buy now, pay later (BNPL) services.59% of consumers said they were targeted by fraud recently, with money/gift card scams the most reported scheme

South Africans are managing cost-of-living challenges with a blend of resilience and caution, according to TransUnion’s Q3 2025 Consumer Pulse Study*. The findings reveal that while inflation and affordability remain top concerns, many consumers are maintaining financial optimism while adopting protective behaviours, especially in credit usage and cyber security.

“South Africans are signalling confidence, but it’s a confidence shaped by awareness of risk,” said Ayesha Hatea, director of research and consulting at TransUnion. “Consumers are balancing optimism with caution, adjusting spending habits, making informed credit decisions, and staying vigilant to fraud.”

Financial Confidence, but Rising Costs

Nearly seven in 10 (68%) of South Africans are optimistic about their household finances over the next year, while 75% expect their income to increase during that period. However, this optimism exists alongside strain: 36% of consumers say they expect to be unable to pay at least one of their current bills or loans in full. South Africans were concerned about the impacts of price increases, most particularly for groceries (82%), utilities (60%), fuel for cars (52%) and medical care (52%).

Younger Generations Shape Credit Behaviour

Generational differences continue to define financial habits. Nearly half of Gen Z (18-28 years old, 48%) and Millennials (29-44 years old, 43%) reported they’ll apply for new credit or refinance existing credit in the next year, compared to far lower intent among Gen X (45-60 years old) and Baby Boomers (61-79 years old).

Younger consumers are also driving the adoption of buy now, pay later (BNPL) services with 55% and 59% of Gen Z and Millennials saying they’ve used BNPL in the last 12 months compared to 39% and 19% of Gen X and Baby Boomers, respectively. Overall, 15% of South Africans who have used BNPL in the last year said they did so to afford a larger purchase (furniture, appliances or cars), highlighting both its appeal and potential risks in a high-inflation environment.

Cautious Credit Intent Amid Affordability Pressures

While the vast majority of South Africans (93%) say that access to credit and lending products is important to be able to achieve their financial goals, many remain hesitant to take on new financial products. In fact, 38% said they’ll apply for new credit or refinance existing credit in the next year. Credit awareness among South African consumers remains strong, with 70% agreeing that access to credit can unlock new opportunities and improve quality of life.

This sentiment aligns closely with TransUnion’s financial inclusion priorities, particularly as alternative data becomes a more prominent tool in assessing creditworthiness. The study reveals that consumers are increasingly aware of how credit affects their daily lives, which highlights the importance of expanding access to credit through inclusive data strategies, especially for those traditionally excluded from formal financial systems.

Among those planning to apply for new or refinance existing credit in the next year, unsecured credit products such as personal loans (30%), new credit cards (29%) and BNPL services (22%) are the most popular credit types they said they’ll apply for. In contrast, a lower percentage said they’ll apply for secured credit options like a new car loan or lease (18%) or home loans (16%), highlighting a cautious approach to larger, long-term borrowing.

Nearly Two-Thirds Report Being Targeted with Fraud

Fraud attempts and scams remained high in Q3: 59% of South Africans said they were targeted by email, online, phone call or text messaging fraud in the last three months, the same percentage as Q2. Among those who said they were targeted, the most reported scheme was money/gift card scams (37%), with phishing (28%) and smishing (28%) also widespread.

With the persistence of attacks, consumers are proactively taking action. In fact, 54% of all surveyed said they changed passwords, 35% checked their credit report for any signs of fraudulent activity against their profile, and 27% modified their login to secure login without passwords options or added multi-factor authentication in the last 60 days in response to cyber security concerns.

“Fraudsters are evolving, and consumers are trying to keep pace,” said Hatea. “This is why education and accessible protection tools are so critical in building long-term trust in digital engagement.”

Consumers can get their free annual credit report from TransUnion here.

* TransUnion’s online survey of 966 South African adults was conducted June 17– 31, 2025.