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The GOOD Party has exposed a web of shifting excuses and bureaucratic buck-passing by the City of Cape Town’s Urban Mobility Directorate regarding the collapse of MyCiTi card-loading services in Walmer Estate.
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TransUnion’s Q1 2026 Consumer Pulse Study highlights more deliberate financial behaviour
South African consumers are adjusting their financial behaviour in response to ongoing cost pressures, with TransUnion's Q1 2026 Consumer Pulse Study[1] revealing meaningful shifts in how households spend, save and manage credit. While many households remain under financial strain, the findings point to a shift toward more deliberate and considered financial decision-making.
The study found that inflation for everyday goods remains the leading financial concern, cited by 41% of respondents as their top financial worry. 35% of consumers indicated that they expect to be unable to pay at least one of their current bills or loans in full.
Against this backdrop, consumer sentiment remains measured. More than two-thirds (69%) of respondents said they are optimistic about their household finances over the next 12 months, down from 72% in Q4 2025, while 14% expressed pessimism and 17% indicated they are neither optimistic nor pessimistic.
“Consumers are not necessarily experiencing financial ease, but they are responding in practical ways to manage pressure,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “What we are seeing is a shift toward more deliberate financial behaviour, where households are actively adjusting spending, prioritising obligations and, where they can, building financial buffers.”
Spending Pullbacks and Savings Adjustments Take Hold
In response to continued financial pressure, many South Africans have adjusted their financial behaviour over the past three months. More than half of the respondents (51%) reported cutting back on discretionary spending such as dining out, travel and entertainment, while 31% said they cancelled subscriptions or memberships.
At the same time, some households report taking steps to strengthen their financial position in the past three months. The study found that 35% of respondents said they paid down debt faster, while 29% reported increasing contributions to emergency savings or stokvels. A further 23% said they increased their retirement savings.
“These behaviours reflect a more cautious and intentional approach to money management. Consumers are looking for ways to maintain stability, whether by reducing non-essential expenses, managing debt more actively or setting aside funds for future needs,” said Hatea.
Financial Outlook Reflects Cautious Confidence
Despite ongoing affordability challenges, the study points to cautious consumer expectations at the time it was conducted. The research was carried out in late February, prior to recent geopolitical developments and ahead of the most recent South African Monetary Policy Committee (MPC) announcement, which left the prime lending rate unchanged. Emerging global market volatility may further shape consumer sentiment and financial behaviour going forward.
More than one in three consumers (35%) expect their spending on bills and loans such as housing, utilities, insurance and credit cards to increase over the next three months. The same percentage (35%) anticipate higher spending on medical care and services during that timeframe. Additionally, 38% expect to increase contributions toward retirement funds and investments. Conversely, a smaller percentage said they’d increase their spending on in-store or online retail shopping such as clothing, electronics and durable goods (29%), large purchases like appliances and cars (26%), digital services (25%) and discretionary spending (21%).
“This pattern suggests that consumers are prioritising essential and future-oriented expenses, while remaining more selective in discretionary areas. It reflects a mindset where financial decisions are being made with greater scrutiny,” said Hatea.
Credit Remains Important, but Caution is Evident
Access to credit continues to play an important role in how consumers manage their finances. However, when it comes to new credit products, TransUnion’s survey indicates that households are approaching borrowing more carefully in the current environment.
Among respondents, 41% indicated that they have used Buy Now, Pay Later (BNPL) services in the past year. For those who have used BNPL, avoiding credit card interest was a key motivation, while non-users most frequently cited avoiding additional debt as the top reason for never using BNPL.
“The role of credit is evolving,” Hatea said. “Consumers still rely on it to manage cash flow and navigate short-term pressures, but there is also a clear awareness of the need to avoid overextension. That balance between access and caution is becoming more important.”
Adapting to a More Demanding Financial Environment
The quarterly findings point to a consumer environment defined less by financial comfort and more by ongoing adjustment. While sentiment has softened slightly from the previous quarter, many South Africans are actively managing their finances amid ongoing cost pressures.
“Rather than a broad sense of financial confidence, we are seeing a more grounded and pragmatic approach,” said Hatea. “Consumers are making deliberate trade-offs to stay on top of their obligations and build resilience where possible. As economic uncertainty persists, the ability to adapt spending, savings and credit behaviour is likely to remain a defining feature of the South African consumer landscape.”
Consumers can get their free annual credit report from TransUnion here.
[1] Methodology: Online survey of 992 South African adults conducted 10–23 February 2026 by TransUnion in partnership with Dynata.
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TransUnion’s Q4 2025 South Africa Industry Insights Report shows the consumer credit market shifting from a tentative recovery to broader stabilisation driven by steady inflation and interest rates, as well as improvements in consumers’ repayment behaviour. During the quarter there was again notable growth in vehicle asset finance and the personal loans market, while retail credit saw a change in product preference with consumers making smaller purchases.
South Africa's vehicle finance market continued its expansion in Q4 2025, with a fifth consecutive quarter of sustained growth. The growth in total loan balances continued to outpace new account volumes, indicating a firmer continued recovery in demand supported by a more accommodative interest rate environment following a 25 basis point (bps) repo rate cut in November, which further improved household affordability. Origination volumes rose 9.9% year-over-year (YoY), supported by strong consumer interest in affordable new car models and sustained lender confidence. The average new loan amount also climbed, by 3.3% YoY.
Much of this growth was driven by younger consumers, with Gen Z and Millennials[1] accounting for 66% of all originations. Lenders demonstrated an increased risk appetite, with originations to riskier below-prime borrowers growing by 20.2% YoY. This expansion coincided with positive repayment performance, as account-level delinquencies (the percentage of accounts three or more months in arrears) declining by 59 bps YoY to 6.8%.
The market dynamics were further shaped by a significant shift in the used-to-new vehicle financing ratio, which declined to 0.96 used vehicles for every new one financed, down from 1.56 in Q4 2024. This shift towards more new vehicle financing reflects the availability of budget-friendly new models and favourable inflation trends.
More consumers chose longer loan terms to improve monthly affordability too: in Q4 2025, 56.4% of consumers chose a loan term of 72 months or more, compared to 51.9% who made the same choice one year prior. This marked the first quarter this decade that more than half of consumers chose the longest vehicle finance term available.
“The change in the used‑to‑new finance ratio indicates stronger momentum in new‑vehicle financing and can also be attributed to shifting consumer preferences,” said Ayesha Hatea, director of research and consulting at TransUnion South Africa. “With advancements in technology, new vehicles often offer more features, safety upgrades, and improved fuel efficiency compared to older models, along with longer and more comprehensive warranties.”
“The data on longer loan terms highlights how consumers are adjusting their spending patterns and making strategic financial decisions. By opting for longer loan terms, many are able to manage their monthly payments more effectively and potentially afford a newer or higher-priced vehicle,” she added.
Diverging Strategies Shaped Personal Loan Market
The personal loan market showed a distinct divergence in Q4 2025 as bank and non-bank lenders pursued contrasting growth strategies. Bank personal loan originations grew by 10.2% YoY with average new account amounts up by 10.7% YoY, extending larger loan amounts to lower-risk consumer cohorts. This disciplined approach yielded better repayment performance as account-level delinquencies for bank loans dropped by 271 bps YoY to 27.0%.
Conversely, non‑bank lenders grew their portfolios quickly by shifting toward smaller loans, with average new account amounts down 2.8% YoY and the total volume of originations up 14.7% YoY. Younger borrowers drove a significant portion of this growth, with the volume of new loans issued to Gen Z borrowers climbing 39.6%. However, in contrast to bank lenders, which target relatively better risk borrowers, non-bank lenders’ customer bases are heavily skewed toward the riskiest subprime[2] consumers. As a result of this exposure, account-level delinquencies for non-bank loans remained elevated at 48.0%.
“These trends highlight a clear market split. Banks successfully managed risk while expanding their active books through larger loans to lower-risk borrowers. Meanwhile, non-bank lenders extended credit access to higher-risk borrowers through smaller loans, but faced notable repayment strain,” said Hatea.
Retail Credit Adapted as Buy Now Pay Later Gained Traction
The retail credit sector showed signs of a strategic shift in Q4 2025, influenced by changing consumer behaviours and the growing adoption of Buy Now, Pay Later (BNPL) solutions. While the clothing account sector showed resilience account originations growing by 7.2% YoY, other areas of retail credit saw a decline in new account openings. Retail instalment origination volumes decreased 19.4% YoY, and revolving credit originations fell 16.6% YoY.
This downturn in traditional retail credit originations could be influenced by increasing popularity of BNPL solutions in the market. TransUnion’s Q4 2025 Consumer Pulse Study shows 57% of South African respondents hold a BNPL product, and 36% have used a BNPL product multiple times in the last 12 months to pay for goods and services.
“Consumers appear to be choosing these flexible payment options for smaller credit purchases, drawn to their fixed or interest-free instalment plans,” said Hatea. “However, this trend has not yet significantly affected clothing accounts, which benefit from strong consumer loyalty and accessibility.”
Despite fewer new accounts in some retail segments, possibly also influenced by tighter lending policies, portfolio health shows positive signs. Account-level delinquencies for clothing accounts fell 213 bps YoY to 24.5% and retail revolving delinquencies dropped 238 bps YoY to 17.6%. Lenders also adapted their strategies: the average clothing account limits went up 6.8% YoY, while the average limit for revolving accounts also grew, by 3.9% YoY. This suggests a focus on providing more credit to existing, credit-healthy customers while managing the influx of new, potentially riskier borrowers.
Table 1: Key South African Consumer Credit Market Metrics (Q4 2025 vs Q4 2024)
|
Product |
YoY origination growth |
Serious account-level delinquency rate* |
YoY basis points (bps) change in delinquency rate |
| Credit card |
8.0% |
12.9% |
+33 bps |
| Bank personal loan |
10.2% |
27.0% |
-271 bps |
| Non-bank personal loan |
14.7% |
48.0% |
+50 bps |
| Clothing accounts |
7.2% |
24.5% |
-213 bps |
| Retail instalment |
-19.4% |
26.8% |
-110 bps |
| Retail revolving |
-16.6% |
17.6% |
-238 bps |
| Home loans |
8.5% |
7.5% |
+11 bps |
| Vehicle finance |
9.9% |
6.8% |
-59 bps |
*Account-level serious delinquency rate, measured as a percentage of accounts three or more months in arrears
“In Q4 2025, lenders widened access to credit where consumers showed stronger repayment discipline, tightening where risk accumulated and reshaping their portfolios towards lower risk borrowers,” Hatea said. “The data suggests that lenders’ priorities are shifting from stabilisation towards sustainable momentum as they pair cautious growth with sharper exposure discipline, deeper affordability insights and refined product strategies.”
[1] TransUnion age distribution: Gen Z (Born 1995 – 2010); Millennials (Born 1980-1994); Gen X (Born 1965-1979); Baby Boomers (Born 1946-1964)
[2] Scores are based on TransUnion’s CreditVision® generic scoring methodology. Risk distribution key: subprime (0-625), near prime (626-655), prime (656-695), prime plus (696-720), super prime (721-999).
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TransUnion Africa, a global information and insights company, today announced the appointment of Michael (Mike) Rogers as Vice President (VP) and Chief Product Officer (CPO), effective 15 January 2026.
Rogers brings more than two decades of technology leadership, digital transformation, and product innovation experience across key African markets, including Botswana, Kenya, Rwanda, Namibia, Zambia, eSwatini, South Africa, and Malawi. His appointment underscores TransUnion’s commitment to developing market‑relevant, scalable solutions that enable organisations across Africa to grow responsibly, manage risk, and broaden access to financial services.
Most recently, Rogers served at Mastercard, where he led consulting engagement across the continent, developing new solutions for the payments ecosystem and driving performance for banking, fintech and digital commerce clients.
Prior to Mastercard, Rogers was Chief Executive Officer of Tarsus Technology Solutions, where he integrated multiple technology businesses spanning cybersecurity, infrastructure and networking and led group-wide digital transformation. He spent 18 years at Accenture, building and scaling technology consulting practices in South Africa, and was the first South African to attain Accenture’s Master Technology Architect certification.
In his new role, Rogers will lead TransUnion Africa’s end‑to‑end product strategy, with responsibility for advancing the product portfolio and strengthening sector‑specific solutions across banking, fintech, insurance, retail, automotive, telecommunications and digital commerce. His focus includes enhancing core credit and risk offerings, accelerating the responsible use of alternative data, and expanding fraud, identity and advanced analytics capabilities to meet evolving market needs.
Working closely with regional and global teams, Rogers will ensure TransUnion’s products are locally relevant, compliant and scalable across diverse African regulatory environments. A key priority will be simplifying product adoption and enhancing decisioning outcomes, enabling clients to more effectively acquire, serve and protect consumers in increasingly digital and data‑driven markets, while supporting inclusive growth across the continent.
Lee Naik, CEO and Regional President for TransUnion Africa, commented: “Mike brings an exceptional blend of technology, product and leadership experience, with a deep understanding of how data-driven products create commercial and social impact. His appointment strengthens our ability to market-relevant solutions that help clients manage risk, grow responsibly and extend access to financial services across Africa.”
Rogers added: “TransUnion Africa sits at the intersection of trust, data and technology. My focus is to simplify adoption, improve decisioning quality and deliver products that create tangible value – helping our clients acquire, serve and protect customers in increasingly digital ecosystems. I am excited to partner with our teams and clients to bring the next generation of solutions to market.”
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As economic pressure mounts and the cost of living continues to rise, South Africans are seeking new ways to balance their monthly budgets without falling deeper into debt. Within this landscape, Buy Now, Pay Later (BNPL) models are rapidly reshaping how consumers approach spending, offering flexibility and access while encouraging responsible money management.
Industry leaders agree that when used correctly, BNPL can be more than a payment tool; it can be a gateway to financial wellness, empowering consumers to make informed, controlled spending decisions that support long-term stability.
“Financial wellness goes beyond survival,” says Mladen Čolić, Head of Fintech at TransUnion South Africa. “It’s about giving consumers visibility into their financial behaviour and the tools to make better decisions. Responsible BNPL use can play a meaningful role in that journey, helping people manage their cash flow, avoid high cost or unmanageable debt, and build a foundation for long-term financial stability.”
From Financial Stability to Financial Wellness
The most recent TransUnion Q4 2025 Consumer Pulse Study shows that while South African households remain under financial pressure, signs of financial adaptation are emerging. In Q4, 48% of consumers reported that their household finances were better than planned, yet 36% anticipated missing at least one bill or loan repayment, highlighting the continued strain many households face. In response, 51% of consumers reported cutting discretionary spending, while others adjusted budgets and prioritised longer-term financial stability. Within this cautious environment, more consumers are turning to flexible digital credit options like BNPL which, when used responsibly, can offer a manageable form of short-term borrowing to help navigate ongoing affordability pressures.
According to data from Payflex, the South African BNPL market Compound Annual Growth Rate (CAGR) is greater than 80% since 2022, with usage particularly strong in fashion, beauty, and consumer electronics categories. E-commerce platforms continue to drive adoption, and BNPL transactions will account for an estimated R25 billion in annual retail spend by 2026, highlighting its growing role in the formal retail economy.
This shift reflects an evolution in how consumers think about money. Financial stability is about meeting immediate needs, keeping bills paid and food on the table while financial wellness goes further, focusing on sustainable, informed financial behaviours that build confidence and resilience over time.
How BNPL Supports Smarter Spending
BNPL allows consumers to purchase goods or services and repay them over a short, fixed instalment period, typically three or four payments at zero interest when paid on time, offering a structured alternative to other forms of short-term credit. For some consumers, avoiding revolving debt allows them to plan purchases more effectively and smooth out cash flow without the burden of high-interest credit.
“BNPL isn’t about fuelling more debt,” says Tracey-Lee Zürcher-Campbell, Chief Marketing Officer at Payflex. “It’s about giving consumers flexibility and predictability, helping them manage their cash flow responsibly while avoiding the pitfalls of high-interest credit. When used correctly, BNPL can support everyday financial stability and contribute to broader financial wellness.”
She adds that this level of transparency is key to consumer trust: “South Africans are increasingly discerning about the financial tools they use. They want products that help them live better within their means, not overextend them. BNPL works when it’s built around clarity, discipline, and accountability.”
Data, Discipline, and Wealth Creation
Responsible BNPL models, supported by data analytics, affordability checks, and consumer education are essential to keeping the category sustainable. For many, these tools also offer a path toward financial inclusion.
Encouraging on-time repayments and transparent data sharing enables BNPL providers to help consumers build a positive payment history, strengthening their financial reputation over time. “When BNPL data is shared responsibly, every on-time payment becomes a useful indicator of positive financial behaviour,” says Čolić. “These data points help build a more complete view of a consumer’s financial profile, supporting greater access and accountability over time.”
As South Africa looks to expanding regulation to support BNPL, the financial sector is showing growing alignment around the principles of transparency, affordability, and responsible innovation. From credit bureaus and FinTechs to retailers and regulators, the shared goal is to ensure that digital credit tools enhance rather than undermine consumer wellbeing.
“The FinTech industry has a collective responsibility to innovate with purpose,” says Zürcher-Campbell. “That means designing products that empower South Africans to make better financial decisions, not just more transactions. When people understand and control their financial choices, they can move from survival to real wellness.”
Funding is secured, but about 50 families living in an informal settlement still need to be relocated
Vehicle asset finance originations continued to surge, driven by younger consumers and prime and below risk tiers
Credit card originations grew, as higher demand was met with lower new account credit limits
Personal loan growth and risk patterns diverged amongst bank and non-bank lenders
TransUnion’s Q3 2025 South Africa Industry Insights Report highlights key trends in the South Africa credit market: vehicle asset finance continued its recovery, with stable account volumes and rising balances supported by longer loan terms and more affordable vehicle choices. Credit card usage expanded, with total book balances growing faster than account volumes, even as average balances per card remained stable and new account credit limits were reduced. Non-bank personal loans surged, driven by higher-risk consumers, though elevated delinquencies underscore the importance of strong affordability checks and consumer safeguards.
These shifting patterns in credit demand, usage and risk occurred against the backdrop of a cautiously improving economy. A 25 basis point (bps) interest rate cut in July, driven by favourable inflation trends, gave consumers some relief. However, unemployment remained high[1] at 31.9% for the quarter, highlighting persistent labour pressures that constrained the wallets of many consumers.
Within this context, the credit market showed signs of strategic adjustment. Consumers — especially younger cohorts — relied more on credit to manage day-to-day expenses and cash flow, while lenders recalibrated growth and risk strategies.
Vehicle Asset Finance Recovery Extended
South Africa’s vehicle finance market grew for the third consecutive quarter, driven by younger consumers in prime and below-prime risk tiers. New account originations rose 17.2% year-over-year (YoY), with the average new loan amount increasing to R412,000, up from R400,962 a year earlier.
Growth was supported by a shift in the used-to-new financing ratio, which fell from 2.67 in Q3 2020 to 1.03 in Q3 2025. Near-parity between new and used financing reflects the availability of budget-friendly new models, often compact or entry-level, that have narrowed the cost gap.
Consumers also opted for longer loan terms, prioritising monthly affordability over total lifetime financing cost. In Q3 2025, 49.6% of loans were for 72 months or longer, up from 38.2% four years ago and 45.6% in Q3 2024.
First-time buyer participation remained strong at 42% of originations, slightly up from 40% a year earlier. Nearly one-third (32%) of originations were to Gen Z consumers (born 1995–2010). Among first-time buyers, 80% were prime or below[2], compared to 48% for existing borrowers.
Account-level delinquencies stayed elevated at 7.2%, which underscores the need for early warning and pre-delinquency outreach, especially for borrowers showing signs of payment strain and increased reliance on credit.
“The market is stabilising away from the post-pandemic skew toward used vehicles, supporting consumers’ preferences for warranty coverage and predictable maintenance while expanding inclusion and access,” said Hatea. “In an increasingly competitive market, lenders need to calibrate loan terms, deposits, and residual values to match current conditions and customise products and insurance bundles for segments returning to new purchases.”
Credit Cards Reinforced Role as Financial Buffers for Consumers
Consumers remained under pressure: more than four in ten (41%) households said their income was not keeping up with inflation in Q3 2025, and 77% listed inflation for everyday goods as a top concern, according to TransUnion’s Q3 Consumer Pulse Study.
As consumers sought liquidity amid these concerns, credit card originations rose 13.8% YoY, although average credit limits on new cards issued fell 9.8% YoY. Outstanding balances increased 7.7% YoY, and average balances per card were up 2.6% YoY. The risk mix of card originations shifted towards higher risk borrowers: subprime consumers comprised 58.3% of new cards opened in Q3 2025, up from 52.4% a year earlier, while the share held by prime and above borrowers declined.
Lower credit limits on new cards likely reflect lenders’ efforts to manage affordability and mitigate risk exposure, even as originations skewed toward higher-risk borrowers.
Account-level delinquency increased to 12.7%. This, along with a heavier subprime mix, stable balances, and lower credit lines suggests that lenders have deliberately shifted their focus to riskier borrowers to fuel growth.
Consumers also managed their financial obligations by taking out additional credit. This was evident in the Q3 2025 TransUnion Consumer Pulse Report which found that nearly one third (30%) of surveyed consumers stated that they took an additional credit product to pay off an existing credit product during the quarter.
“While lenders seek growth, they are simultaneously tightening credit lines and deploying early interventions to protect portfolio quality,” said Hatea. “Dynamic credit line strategies and early interventions are key. Expanding pre-delinquency outreach and offering short-term hardship solutions can prevent roll-through into missed payments beyond three months, especially for subprime consumers carrying larger balances.”
Bank and Non-Bank Personal Loan Trends Diverged Further
Differences in growth and risk patterns between bank and non-bank lenders widened in Q3 2025. Banks expanded cautiously, focusing on larger, purposeful loans, while non-bank lenders grew through smaller, short-term loans aimed at higher-risk segments. These shifts reflect differing consumer targeting strategies of the two lender groups and increasing affordability pressures on higher-risk borrowers.
Bank-issued personal loan originations rose 7.6% YoY, with average new loan amounts up 9.3% YoY, reinforcing a trend toward larger loans for purposeful borrowing. However, the number of consumers carrying a personal loan balance fell 3.6% from the previous quarter, suggesting loan consolidation and/or repayment by borrowers. Account-level delinquency reached 28.1%, indicating repayment strain despite banks’ disciplined approach to growth and proactive measures to manage long-term defaults.
Non-bank personal loan originations rose 8.5% YoY, but average new personal loan amounts fell by the same margin of 8.5%. Average balances per account dropped 31.9% YoY, showing that these loans are increasingly used for short-term or emergency needs rather than financing larger purchases or debt consolidation. Risk indicators deteriorated sharply: account-level delinquencies surged upwards to 49.4%, highlighting rising financial stress among non-bank personal loan borrowers, compounded by a greater concentration of subprime consumers.
“Personal loan lenders need to balance access with sustainability,” said Hatea. “Stronger affordability checks and better early warning systems can prevent roll-through into deeper delinquency. Proactive engagement with at-risk consumers and tailored hardship solutions will help preserve portfolio health while maintaining access to credit.”
Table 1: Key South African Credit Market Metrics (Q3 2025 vs Q3 2024)
|
Product |
YoY origination growth |
Serious account-level delinquency rate* |
| Credit card |
13.80% |
12.70% |
| Bank personal loan |
7.60% |
28.10% |
| Non-bank personal loan |
8.50% |
49.40% |
| Clothing accounts |
9.85% |
25.60% |
| Retail instalment |
-1.45% |
27.40% |
| Retail revolving |
5.20% |
17.90% |
| Home loans |
10.68% |
7.60% |
| Vehicle finance |
17.20% |
7.20% |
*Account-level serious delinquency rate, measured as a percentage of accounts three or more months in arrears
With an improving macroeconomic environment, driven by moderating inflation and associated interest rate cuts, continued shifts in the consumer credit market are to be expected. However, Hatea concluded: “Even though there are cautious signs of improvement, lenders and policymakers must remain agile when balancing growth with resilience. Refining segmentation strategies and enhancing early risk detection will be key to supporting consumer financial health and maintaining long-term portfolio stability.”
[1] Trading Economics South Africa Unemployment Rate
[2] Scores are based on TransUnion’s CreditVision® generic scoring methodology. Risk distribution key: subprime (0-625), near prime (626-655), prime (656-695), prime plus (696-720), super prime (721-999).
South African consumers continue to adapt to a fluctuating economic environment, with TransUnion’s Q1 2025 Consumer Pulse study[1] revealing key trends in household financial management, credit activity and vehicle financing. Amid ongoing financial pressures, a significant increase in intended hybrid vehicle financing highlights evolving consumer preferences.
“Despite the challenges posed by inflation and economic uncertainty, South Africans continue to show resilience in managing their finances,” said Ayesha Hatea, Director of Research and Consulting at TransUnion. “We are seeing notable shifts toward more purposeful financial planning, credit management and strategic spending. While economic pressures remain, consumers are finding ways to balance credit usage, savings, and debt repayments more effectively.”
Economic Concerns and Credit Usage Trends
The report highlights consumers’ ongoing financial concerns, with 42% of respondents stating that their household income is not keeping up with inflation, despite inflation being at the lower end of the Reserve Bank’s target range[2]. These ongoing concerns could be because 40% of consumers said their income stayed the same in the past three months, while 22% reported it decreased.
“With more than six in ten South Africans reporting no increase in their income, it’s clear to see why consumers are trying to find new ways to manage their financial commitments, including taking on more credit, and different types of credit, for key purchases,” said Hatea.
The survey data reveals that 37% of respondents plan to apply for new or refinance existing credit within the next year, with 52% of all those surveyed saying they’ve used Buy Now, Pay Later services in the past 12 months.
Amid ongoing concerns about a recession, consumers indicated that they are actively taking steps to prepare. Among those who said they think South Africa is currently in a recession or will be in one by the end of Q1, the most respondents (59%) said they’re preparing for a possible recession by reducing spending followed by 58% building up their savings and 35% prioritising paying down debt.
Debt Repayments and Savings Trends
The data also reveals shifting trends in debt repayments and savings. A worrying trend is that 38% of respondents in Q1 2025 said they’ll be unable to pay at least one of their current bills and loans in full, up from 35% in Q4 2024.
Among those who said they’ll be unable to pay, 34% reported they plan on paying partial amounts they can afford but not the whole balance, while 25% said they’ll dip into their savings to help pay their current bills and loans. A further 20% of consumers aim to borrow money from friends or family members to meet their payment commitments. Additionally, 35% of those surveyed are looking to take on temporary or gig work.
“Managing debt effectively while maintaining savings is a key challenge for many South Africans,” said Hatea. “Consumers who are struggling to meet their payment commitments should engage with their lenders to potentially renegotiate current payment terms. Lenders do not want consumers to default on their debts, and they are often willing to discuss available options with the intention of creating prudent, sustainable financial solutions.”
Hybrid Vehicle Financing Expected to Increase
Of particular interest in the Q1 2025 study is the finding that 36% of consumers planning a new vehicle loan or lease within the next year would consider hybrid vehicles, while 25% would consider an electric vehicle. In comparison, 32% preferred traditional internal combustion engine vehicles, making hybrid cars the top consideration for new vehicle loans or leases among those surveyed.
The latest TransUnion Vehicle Pricing Index (VPI) reflects this trend, with the anticipated introduction of more affordable EVs priced under R1 million expected to accelerate their adoption in 2025, thanks to broadening consumer options in the hybrid and EV market.
“This trend highlights how consumers are adapting to broader economic and environmental changes,” said Hatea. “Hybrid vehicles are becoming more accessible, and their appeal extends beyond cost savings to include long-term benefits such as reduced environmental impact and lower running costs. As this market continues to evolve, we anticipate sustained growth in consumer interest and adoption.”
Fraud Concerns
The study highlights that nearly one in three respondents (31%) check their credit reports monthly, with 54% of those who said they monitor their credit doing so to try and improve their credit score. This indicates an awareness of the importance of credit health management.
A smaller 34% of credit monitoring consumers said they check their credit reports to protect against fraudulent activity. More than half (51%) of all those surveyed reported being targeted by email, online, phone call or text messaging fraud in the last three months but not falling victim, emphasising the importance of heightened security awareness.
Among the most common fraud schemes reported by those who said they were targeted were money/ gift card scam (33%), smishing (33%), phishing (32%) and third-party seller scams on legitimate online retail websites (31%), emphasising the urgency for consumers to remain vigilant.
“With digital transactions and online banking becoming standard, financial institutions are urged to implement stronger fraud prevention measures, while consumers are encouraged to monitor their credit activity and adopt safer financial practices,” said Hatea.
Adapting to Improve Credit Health
In response to ongoing financial pressures, South African consumers are making strategic adjustments to their household budgets. In the past three months, 52% said they have cut back on discretionary spending such as dining out, travel and entertainment, with 43% of them reporting scaling back on large purchases like furniture, appliances and cars. This cautious approach highlights a continued emphasis on financial resilience and long-term stability.
“Our findings show that South Africans are taking a more proactive approach to managing their finances amid economic uncertainty,” said Hatea. “While financial pressures persist, consumers are prioritising essential spending, reducing discretionary expenses, and making thoughtful financial decisions to maintain stability. Providing them with the right tools, education and financial products will be crucial in supporting their financial well-being in the months ahead.”
The Reserve Bank’s decision to reduce the repo rate by 0.25% to 7.5% this January, with no change in March[3], aims to support economic growth and ease borrowing costs for consumers. This adjustment, coupled with improved inflation expectations, is expected to provide further relief to consumers and stimulate economic activity.
As economic conditions evolve, businesses, financial institutions, and policymakers will need to align with these shifting behaviours, offering solutions that promote financial inclusion, long-term stability, and economic growth.
Consumers can get their free annual credit report from TransUnion here.
[1] Q1 2025 South African Consumer Pulse Study was a survey of 950 South African adults from Feb. 10 to 24, 2025.
[2] Inflation Targeting Framework
[3]: repo rate by 0.25% in January to 7.5%: Current Market Rates
As financial awareness continues to grow across South Africa, new insights from TransUnion’s Q1 2025 Consumer Pulse Study reveal encouraging signs that more consumers are actively taking control of their credit health.
According to the Consumer Pulse Study, nearly one in three South Africans (31%) check their credit reports on a monthly basis, a significant step in the right direction. More than half (54%) of those who check their reports do so with the intention of improving their credit scores, showing a shift toward long-term financial empowerment.
“We’re seeing a rise not only in credit awareness, but in the importance of checking and understanding your credit report, which is an incredibly positive sign,” says Fatgie Adams, Head of Credit Risk Solutions at TransUnion Africa. “Knowing your credit report and credit score is one of the simplest yet most powerful ways to take control of your financial future. It opens the door to better lending rates, protects against fraud, and supports better decision-making.”
A deeper understanding of how to read the data on your credit report is also essential. A credit report provides a snapshot of your credit activity and how lenders perceive your creditworthiness. It typically includes information like:
By learning to read this data, consumers can spot potential errors, identify areas for improvement, and gain insights into how their credit management practices impact their scores. Understanding these elements not only helps improve your score but also boosts your financial confidence when applying for loans or credit.
While this progress is encouraging, the study also highlighted opportunities for deeper financial vigilance. Only 34% of consumers currently check their credit reports as a means of fraud prevention. Notably, although 50% of respondents reported being targeted by scams or fraud in the past three months, but did not fall victim, indicating a promising increase in consumer awareness and resilience
With 37% of South Africans planning to apply for new or refinanced credit in the next 12 months, understanding one’s credit standing and how to interpret the information on your credit report becomes even more crucial, particularly in today’s challenging economic climate.
“We encourage consumers to make credit report checks part of their regular financial routine,” adds Adams. “It takes just a few minutes and it’s one of the most effective tools for staying financially fit and fraud aware.”
Quick Tips for a Healthier Credit Score
To check your credit score for free and learn more, visit www.transunion.co.za.
The latest TransUnion South Africa Mobility Insights Report (formerly the Vehicle Pricing Index) for Q1 2025 highlights a strong rebound in the country’s automotive market. This recovery has been driven by improved consumer sentiment, declining interest rates, access to retirement savings through two-pot withdrawals, and rising real wages. According to naamsa data, new passenger vehicle sales continued their upward trajectory in the first quarter, with monthly volumes averaging over 34,000 units, the highest levels seen since Q3 2015.
Affordability remains a key driver of vehicle purchasing and financing decisions. Creative financing options, longer ownership cycles, and the growing availability of value-oriented models are significantly reshaping consumer behaviour, particularly among younger and first-time buyers. The Q1 2025 TransUnion South Africa Mobility Insights report highlights that several emerging brands offering competitively priced vehicles have recorded strong year-over-year growth, contributing to the overall surge in new vehicle sales.
“South African consumers are returning to the vehicle market with a clear focus on value and flexibility,” says Lee Naik, CEO TransUnion Africa. “We’re seeing a continued shift away from traditional premium segments in favour of more accessible alternatives that meet evolving needs and budgets.”
Insurance Trends Reveal Shifting Landscape and Rising Risk
The Q1 2025 report introduces new data on insurance-linked vehicle asset finance (VAF). As of early 2025, only 39% of insured vehicle owners had financed vehicles, down from 44% in 2020. This signals a rise in alternative financing or lapses in insurance post-purchase, especially concerning as TransUnion’s 2024 Insurance Survey found that 25% of vehicle users had driven uninsured in the past six months.
This trend has implications for lenders, who face greater asset risk in the event of write-offs without insurance recovery, and for insurers, whose portfolios may now carry increased exposure. To mitigate these risks, strategies such as bundled insurance, usage-based coverage and low-cost flexible insurance models are growing in relevance.
Used Vehicle Momentum Slows as New Sales Lead Recovery
While used vehicles have dominated financing trends in recent years, Q1 2025 marked a notable shift back toward new vehicle purchases, driven by easing interest rates, improved entry-level model availability, and aggressive manufacturer incentives. Notably, the influx of competitively priced Chinese models has attracted budget-conscious buyers away from the used market, fuelling fresh growth in new vehicle registrations.
“Consumers are holding onto their cars for an average of six to eight years, compared to the previous five years, a trend that reflects affordability constraints and a more cautious approach to ownership,” says Naik.
Affordability and Flexibility Drive Change
The report reveals that shifting consumer preferences are reshaping the competitive landscape, with some established manufacturers experiencing year-over-year sales declines while more affordable and value-driven entrants continue to gain market share.
“The definition of value is changing,” says Naik. “It’s no longer just about the price tag, it’s about financing flexibility, long-term ownership costs, and trust in the product. That’s what’s driving consumer decisions today.”
Social Media's Growing Influence on South African Car Buyers
Generation Z’s1 rising influence, with a 27.9% year-on-year increase in vehicle finance volumes, highlights why social media has become essential for automotive brands aiming to attract younger buyers. As South Africans spend over 3.5 hours daily on platforms like TikTok, Instagram, and YouTube, 76% of users now turn to social media for product research, pushing automotive brands toward digital-first strategies with influencer campaigns, short-form videos, and interactive content, yet South Africa’s low social media ad spend signals a major untapped growth opportunity for marketers.
Social platforms are reshaping how South African consumers research, engage with, and purchase vehicles, particularly among Gen Z and Millennials1 who expect personalised, digital-first experiences. To stay competitive, brands are adopting influencer collaborations, platform-specific strategies, AI-enabled targeting, and immersive tools like augmented reality and virtual reality. Social commerce is gaining ground as buyers look for seamless, in-app journeys from browsing to booking.
Economic Outlook: Growth with Caution
The broader economic outlook for South Africa in 2025 remains cautiously optimistic, with GDP expected to grow by 1.4%, driven primarily by household consumption. While industrial output remains under pressure, consumer-driven sectors, particularly retail and vehicle sales, continue to show resilience. Vehicle export activity rose modestly by 0.4% year-over-year in Q1 2025, signalling a gradual recovery following the sharp decline in the previous quarter.
“The strong recovery in new vehicle sales is a positive sign,” says Naik. “But sustaining this growth will require policy certainty, infrastructure investment, and structural reforms. Without these, the economy remains vulnerable.”
“The South African automotive sector is adapting to new consumer behaviours and market forces. The insurance gap, affordability options, credit access and rising Gen Z1 participation will shape the road ahead. Collaboration across industry players is vital for long-term growth,” concludes Naik.
Read the full TransUnion South Africa Mobility Insights Report here.
1 Generation X (Gen X): Born 1965–1980; Millennials (Gen Y): Born 1981–1996; Gen Z (Generation Z) Born 1997–2012
ENDS
Sixty-eight percent of South Africans TransUnion surveyed from 21 November to 9 December 2024 indicated that they had been targeted by email, online, phone call or text messaging fraud in the last three months, with 13% saying that they had become victims. Among those who said they were targeted, the most common reported schemes were phishing, where fraudulent emails, websites, social posts or QR codes are meant to steal personal data (33%), smishing where fraudulent text messages try to trick the user into sharing data (31%), and third-party scams on legitimate online retail sites (28%).
In a separate question in that same survey, one third (33%) said that they had lost money to email, online, phone call or text messaging fraud in the last year. Nearly one third (32%) of those who said they lost money reported it happening via third-party seller scams on legitimate online retail sites. This was followed by 26% who lost money via money mule scams where users are solicited to transfer or move illegally acquired money on behalf of someone else, and 23% who lost money via stolen credit card or fraudulent charges.
These and other findings came from research used for building the newly released TransUnion (NYSE: TRU) H1 2025 Update to the State of Omnichannel Fraud Report, which shows how South African consumers continue to be targeted by fraudsters through a wide range of channels.
“With South Africa having the second greatest number of smartphone connections in Sub-Saharan Africa, with people using mobile phones to conduct their everyday business, connect with friends, or keep in touch with family, it’s easy to understand why digital fraud would be such a common tactic among fraudsters targeting this region,” said Amritha Reddy, senior director of fraud solutions at TransUnion Africa. "While cybercriminals will attack at any time using any channel, they appear to focus on channels most popular in the regions they are targeting.”
Nearly one third (31%) South African respondents indicated that they were not aware of being targeted by email, online, phone call or text messaging fraud at all, which raises questions as to whether these respondents were in fact targeted, yet simply unaware of the threat.
Based on the TransUnion study, South Africa had the greatest percentage of respondents among countries surveyed in Africa who said they fell victim to email, online, phone call or text messaging fraud in the second half of 2024. In contrast, Zambia had the lowest percentage of consumers who said they fell victim to fraud in the countries surveyed in Sub-Saharan Africa.
Table 1: Fraud Types Most Frequently Used to Target Consumers in Sub-Saharan Africa in the Last Three Months
| Country | Targeted and fell victim | Targeted but didn’t fall victim | Not targeted | Most reported fraud scheme |
| South Africa | 13% | 55% | 31% | Phishing |
| Kenya | 11% | 71% | 19% | Smishing |
| Namibia | 11% | 52% | 37% | Vishing |
| Rwanda | 10% | 57% | 33% | Money mule |
| Zambia | 9% | 70% | 21% | Smishing |
Source: TransUnion Consumer Pulse Survey of 1,000 people in South Africans in December 2024
Communities and Video Gaming Among Top Industries Targeted by Suspected Digital Fraud
Globally, TransUnion determined that communities (online forums and dating sites) experienced the highest rate of suspected digital fraud[1] attempts in 2024. Nearly 12% of all attempted transactions within communities last year were suspected to be digital fraud. This was closely followed by video gaming (11%), with gaming (including online betting, poker, etc.) at 8% and retail (8%) rounding out the top four.
The logistics industry, which has seen growth in shipping fraud (often perpetrated by organised crime rings), saw the greatest suspected digital fraud volume growth globally in 2024, up more than 100% over 2023. That being said, the fraud rate remains at a relatively modest 3%. Gaming also saw a significant year-over-year (YoY) volume change, up 20%. Telecommunications (-79%), insurance (-29%) and video gaming (-23%) saw the greatest decreases in suspected digital fraud volume YoY.
“Digital fraud on community platforms is by no means a new phenomenon. In 2024, it appears that fraudsters targeted these areas with a renewed vigour,” said Reddy. “Cybercriminals take advantage of the trust inherent on community-based platforms, and target members with a wide range of scammer solicitations, the most reported type of digital fraud in communities.”
For attempted transactions where the consumer or fraudster was located in South Africa, gaming experienced the highest suspected digital fraud rate in 2024 at 6.3% with an 8.1% decrease in the volume of suspected digital fraud from 2023. The only South African industries in which suspected digital fraud increased YoY were insurance and communities.
“It is encouraging to see that attempts at digital fraud have decreased across all but two of the surveyed industries in South Africa,” Reddy says. “Organisations that draw on identity, device and behavioural insights to help them interact with legitimate consumers while mitigating fraud risk are more likely to protect themselves and their customers from the scourge of digital fraud.”
Table 2: Highest Digital Fraud Rates Across Leading Industries in South Africa
| Industry |
Suspected digital fraud attempt rate 2024 |
Change in volume of suspected digital fraud attempts from 2023 to 2024 |
| Gaming |
6.3% |
-8.1% |
| Telecommunications |
6.2% |
-58.5% |
| Financial services |
6.1% |
-29.6% |
| Video gaming |
6.0% |
-67.2% |
| Insurance |
5.6% |
166.5% |
| Communities |
5.0% |
4.0% |
| Retail |
2.9% |
-8.9% |
| Travel & leisure |
0.5% |
-87.0% |
Source: TransUnion TruValidate™
Fraud Comes with a Heavy Cost to Consumers
Consumers faced significant losses due to fraud. Among consumers TransUnion surveyed in 18 countries and regions in November and December 2024, 29% said they lost money due to email, online, phone call or text messaging fraud in the last year. The survey determined that the median amount those consumers said they lost due to fraud in the past year was R32,447. For those who said they lost money due to fraud in South Africa, the median stated amount lost was R12,518[2].
TransUnion came to its conclusions about digital fraud based on intelligence from TransUnion TruValidate.
Specific country and regional data in the report includes South Africa, Botswana, Brazil, Canada, Chile, Colombia, the Dominican Republic, Guatemala, Hong Kong, India, Kenya, Mexico, Namibia, the Philippines, Puerto Rico, Rwanda, Spain, the United Kingdom, the United States and Zambia. Download the TransUnion H1 2025 Update to the State of Omnichannel Fraud Report for more information and insights about the global fraud trends.
[1] The rate or percentage of suspected digital fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country or region when conducting a transaction. Global statistics represents every country worldwide and not just the select countries and regions.
[2] Based on the exchange rate on 6 Jan. 2025
TransUnion Africa, in partnership with MTN and Chenosis, has launched CreditVision® Telco Data Score, a first-of-its-kind credit scoring solution that uses mobile phone call data records to help millions of South Africans with limited or no formal credit history gain access to financial services.
This alternative data scoring model leverages Call Data Records (CDR), which reflect patterns in mobile phone network usage behaviour and correlates it to an individual’s financial behaviour. By using telco data as a proxy for financial reliability, the CreditVision Telco Data Score enables lenders to accurately assess New-to-Credit (NTC) consumers and expand access to safe, affordable credit.
Helping the Financially Excluded
According to TransUnion estimates, over 1.4 million credit-invisible South Africans open new credit accounts each year, contributing to more than four million new accounts over the past three years. Yet traditional scoring models often fail to assess this segment accurately, leaving more than 16 million adults outside the formal credit system.
Approximately 35% of New-to-Credit consumers are under the age of 25, many of whom are new to the workforce and often use credit to buy clothing for work, highlighting the need for innovative tools that support younger, digitally active individuals who may lack a conventional credit footprint. Successfully integrating these and other excluded consumers into the economy could add approximately R173 billion1 to South Africa's GDP.
“With over 500 million2 people across the continent excluded from formal financial systems, the scale of the challenge is undeniable. Traditional data models fail to reflect the realities of African consumers, leaving millions without access to credit and the opportunities it enables. Financial inclusion isn’t just part of our mission, it’s our mandate,” said Lee Naik, CEO of TransUnion Africa. “That’s why we believe the only way forward is to think differently, to lead with bold, African-born solutions. Innovations like CreditVision Telco Data Score, designed for Africa, by Africa, are helping us responsibly harness mobile data at scale. In doing so, we’re not only expanding access to credit, but we’re also unlocking economic potential, accelerating inclusive growth, and reshaping the future of finance across the continent.”
Creating Opportunity with Consent and Compliance
The use of CDR data is subject to explicit consumer consent and is managed in compliance with South Africa’s Protection of Personal Information Act (POPIA). MTN is responsible for consent management and will ensure that Chenosis, MTN’s API marketplace, facilitates the connection between MTN’s data ecosystem and partners like TransUnion in a secure and scalable manner.
“This partnership demonstrates how mobile technology and secure data sharing can support positive change in the financial sector and unlock new opportunities for millions of South Africans,” said Selorm Adadevoh, Group Chief Commercial Officer, MTN Group. “We are committed to ensuring that data is used responsibly, with the customer’s interests at the forefront. This is a model of what responsible innovation can look like.”
Empowering Lenders and Growing the Economy
For lenders, the CreditVision Telco Data Score has demonstrated a 25–35% improvement in predictive performance over previous alternative data models, based on recent pre-launch validations across the retail and banking sectors.
By adopting CreditVision Telco Data Score, lenders can better predict user behaviour and support responsible lending by ensuring that credit users at risk of default are not overexposed and can be effectively supported throughout their credit journey.
Importantly, the product also helps New-to-Credit consumers establish and build their credit footprint over time. According to TransUnion data, low-risk individuals significantly increase their credit exposure within 18 months of becoming credit active, underscoring the long-term benefits of responsible financial inclusion strategies.
“With Chenosis, we enable collaboration between mobile operators and solution providers while maintaining high security and compliance standards,” said Waseem Amra, Head of Products and Platforms, Chenosis. “This partnership highlights how secure data access can support innovation in financial services that can transform lives.”
This partnership between TransUnion Africa, MTN, and Chenosis reflects the growing trend of using diverse data sources to create more accurate and inclusive financial access. Integrating mobile network insights into credit scoring provides a practical and scalable way to reach more individuals, while maintaining high standards of privacy and compliance.
“With this inclusive innovation, TransUnion has taken the lead in creating an impactful solution to one of the continent’s most pressing challenges – finding responsible pathways to greater financial inclusion that will unlock opportunities for individual and national growth. By turning mobile data into meaningful opportunity, we have set the standard in making transformation possible by showing how technology can be used in groundbreaking alternative ways. Together with MTN and Chenosis, we are building a future where every South African, regardless of their financial history, has the chance to be seen, to be trusted, and to thrive,” Naik concluded. “When financial institutions can measure risk more effectively, they can lend more confidently, and more consumers can access opportunity, and that’s a win for everyone.”
1. Based on TransUnion’s modelling and interpretation of economic market dynamics. 2. Source: The Global Findex Database 2021
Drakenstein Municipality recently cautioned residents to use water responsibly after noting a decline in dam levels.
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Construction started in 2011 on a new taxi rank for Thohoyandou