Phygital shopping, the seamless blend of physical and digital retail experiences, is gaining momentum globally and in South Africa. According to research, 21% of South African consumers now prefer phygital options like browsing online before buying in-store or using click-and-collect services.
Discovery Bank and Visa released their new SpendTrend25 report, their third annual collaborative report of South African consumer spending habits based on an in-depth analysis of credit card spend data. Combining their extensive datasets and analytical expertise, SpendTrend25 tracks how consumer spending habits have evolved between 2019 and 2024 among Discovery Bank clients and the broader South African population.
The Global & Local Phygital Trend
Internationally, shoppers increasingly use hybrid methods, such as checking in-store stock online or ordering digitally for in-person pickup. This trend is catching on in South Africa, as retailers integrate digital convenience with traditional shopping.
What is Phygital Shopping?
Phygital retail merges the best of both worlds:
- Click-and-collect – Order online, pick up in-store
- Real-time stock checks – Verify availability before visiting
- Interactive tech – AR displays, digital kiosks, and smart mirrors
Consumer Demand for Flexible Payments
As phygital grows, shoppers expect diverse payment options, including:
- Digital wallets & contactless payments
- Buy-now-pay-later (BNPL) services
- Cryptocurrency and other emerging methods
Security and convenience remain top priorities, reinforcing the need for seamless transactions.
South Africans Shop Globally from Home
While local in-store international spending has dipped, nearly a third of SA consumers now buy from global platforms like Shein, Temu, and Amazon monthly. The shift highlights a preference for online convenience, variety, and competitive pricing.
Online vs. In-Store Shopping Trends
- Grocery spending → Online up 15%, in-store only 6%
- Prepared food → Dining out grows 13%, takeout just 10%
- Grocery = task (convenience online)
- Dining = experience (social in-person)
Discovery Bank data reveals the 31-40 age group leads online grocery shopping, with 20% of their spend happening digitally.
Key Takeaways
- Phygital shopping bridges digital convenience with in-store engagement.
- South Africans increasingly embrace global e-commerce.
- Payment flexibility and security remain critical for hybrid retail.
This trend signals a retail evolution, where seamless, tech-enhanced experiences define the future of shopping.
