Consumer adoption of digital vouchers has nearly doubled over the past two years, from 8% to 14%, according to Electrum’s latest research, The State of VAS in South Africa 2024. In addition, the study shows increases in transaction amounts.
Based on these factors, consumer appetite for this form of VAS is growing. Several factors could influence this, including greater consumer choice, changes in buyer habits, greater maturity of the voucher product, and the prominence of betting.
Digital channels are transforming voucher purchasing
Voucher options have grown beyond retailer vouchers to betting, streaming, gaming, food, travel, and multi-purpose vouchers like OTT, 1Voucher, and BLU vouchers.
Digital adoption appears to have transformed how customers use digital vouchers. Electrum’s research shows that 28% of all vouchers purchased are bought on behalf of other people, indicating a trend toward using vouchers to support friends, family, and colleagues.
With the prominence of digital channels (70% on the banking app), this highlights how critical it is to have the right software and partnerships.
Shifts in consumer behaviour create opportunity
As digital voucher offerings expand, consumer behaviour has evolved in parallel. Electrum’s latest research finds that 50% of all digital voucher purchases are made monthly. Such regularity implies that vouchers may be used as a form of alternative payment method. Especially when considering that many customers purchase on behalf of friends and family. This shift in consumer behaviour is especially clear among higher-income earners (above R22 000 per month), who make frequent, high-value purchases, driving the growth of digital vouchers in the financial ecosystem.
Unlocking growth in the betting voucher market
As the popularity of online betting continues to rise, digital vouchers are increasingly becoming a crucial payment option for operators and bettors.
According to Electrum’s research, banks lead in consumer preference for betting vouchers (56%), with formal retail outlets coming in second (25%), followed closely by spaza shops (16%).
However, there's a significant shift in lower-income groups (<R8 000 per month) as small-scale merchants (32%) are ahead of large-scale retailers (22%), while bank apps are still the first choice (41%).
The data highlights the need for convenience and proximity and with many betting customers residing in townships (39%), it further suggests that accessibility is a key driver of vendor preference.
To meet consumers where they are, retailers are well-positioned to expand their reach through digital offerings, blending their existing in-store footprint with growing demand for online convenience.
A digital voucher solution designed specifically for the betting market could provide consumers with a seamless and convenient way to place bets and redeem rewards, while ensuring a secure and frictionless experience.
Betting vouchers stand out as a dynamic growth area in value-added services (VAS), with an increase from 14% to 26% adoption over the past two years. The market spend on betting vouchers is now R49 billion, approximately 10% of the total spend on VAS in 2024.
With this rapid growth comes intensifying competition. Banks and retailers need to expand their VAS portfolios in all meaningful areas to ensure they remain competitive. This means finding the right solution partner is critical.
Powering VAS growth through strategic partnerships
To drive growth and keep up with the increasing demand for digital preference in a competitive market, banks and retailers can expand their VAS portfolios with Electrum’s Digital Voucher Solution. Offer customers more choice with a broader range of voucher options connected to our extensive network of service providers. With pre-built integrations, digital vouchers can be delivered to market quickly and efficiently.
Get in touch to learn how your business can get ahead in the VAS game.
