With card fraud rising sharply, banks urge customers to switch to virtual cards and digital wallets for safer, smarter payments
As plastic cards fade, digital security shines
In a major shift shaping the future of South African banking, financial institutions are urging citizens to move away from traditional plastic bank cards and adopt virtual cards and tap-to-pay digital wallets. This change is not merely a tech trend—it’s a strategic response to the alarming surge in card fraud, and it promises enhanced safety, speed, and convenience.
Why South Africans Are Ditching the Plastic
Recent statistics from the South African Banking Risk Centre (Sabric) paint a worrying picture: between 2022 and 2023, card fraud surged by 9.1%, climbing from R414 million to R452 million in total losses. A staggering 80.6% of these losses—roughly R338.5 million—stemmed from card-not-present (CNP) fraud, a form of fraud where the cardholder’s information is stolen and used online, without the physical card ever being touched.
Even more concerning, lost and stolen card fraud jumped by 26.9%, and criminals used counterfeit cards to steal another R22 million in 2023. Although this figure marks a decrease from previous years, largely thanks to the rise of contactless payments, the risk remains significant.
According to the Banking Association of South Africa (Basa), physical cards are vulnerable to loss, theft, and interception. When fraudsters get their hands on newly issued credit or debit cards before they reach the rightful owner, they can wreak havoc on that person’s finances.
The Rise of Virtual Cards and Tap-to-Pay
As fraud tactics become more sophisticated, banks and tech providers are fighting back with smarter payment tools. Enter virtual cards and tap-to-pay wallets, now being heavily promoted by banks such as FNB and Discovery Bank.
According to the Visa and Discovery Bank SpendTrend25 report, 45% of cardholders already use virtual cards, while many others own them but have yet to activate their benefits.
Discovery Bank notes that virtual cards offer enhanced security and greater control over spending, making them ideal for online transactions. Fraudsters are finding it increasingly difficult to breach these digital layers of protection.
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FNB reports a boom in virtual card adoption: since launching in July 2020, 7.2 million FNB virtual cards have been created, with spending reaching a whopping R111.2 billion as of February 2025.
Meanwhile, the PayFast State of Pay 2024 study confirms the trend: digital wallets like Apple Pay and Samsung Pay now account for 22% of in-store payments. With a 9% growth in 2024 alone—matching the 2023 increase—tap-to-pay options are becoming second nature, especially in fast-paced metros like Johannesburg and Cape Town.
The Visa Stay Secure Study 2025 reveals that 68% of South Africans plan to use digital payments even more in the coming year. The reasons? Simple: speed, convenience, and security.
Safer, Smarter, More Convenient
The evolution away from physical cards is not just about staying trendy—it’s about reducing exposure to fraud, improving transaction speed, and enhancing control over your financial life.
By using virtual cards, you limit the chances of card details being stolen. They often have dynamic CVV codes, can be locked instantly, and allow you to set custom spending limits. Digital wallets further reduce risk by masking your actual card number during payments.
And let’s not forget the convenience—just a tap of your smartphone or smartwatch, and you’re done.
Looking Ahead: What You Can Do
If you haven’t made the switch yet, now is the perfect time to:
- Request a virtual card from your bank’s mobile app.
- Link it to your digital wallet (e.g., Apple Pay, Samsung Pay, Google Wallet).
- Set transaction limits and activate alerts for full control.
- Use tap-to-pay wherever available for safer in-store shopping.
- Avoid storing card details online, even for trusted websites.
Physical cards aren’t obsolete—yet. But their time is clearly ticking, especially in a digital-first world where every second counts and every swipe could be a scam.
Also read: How eSIM Cards Are Revolutionizing the Mobile Experience: The Future of Connectivity
