South African consumers are fundamentally reshaping their digital spending habits, moving away from traditional entertainment towards services that prioritize productivity, functional value, and everyday convenience. According to the Discovery Bank SpendTrend26 report, while the overall volume of online subscriptions is rising, the “composition of the basket” has shifted toward utility-driven tools like Artificial Intelligence (AI) and e-commerce.
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The most explosive growth was seen in e-commerce subscriptions, which saw payment volumes skyrocket by 695% over the last two years. Services like TakealotMore and Checkers XtraSavings Plus, which offer free delivery and exclusive discounts, now account for 12% of total subscription spend, up from just 2% in 2023.
Artificial Intelligence has also emerged as a dominant force. AI subscription payment volumes grew by 125% during the year, effectively replacing streaming as the most popular category by share of spend. Among users surveyed:
- 67% use ChatGPT.
- 35% use Gemini.
- 27% use Copilot.
Notably, 40% of respondents now utilize these AI tools weekly to assist with purchasing decisions, signalling that AI is no longer a novelty but a core functional tool for the South African household.
As functional spending climbs, discretionary entertainment has taken a hit. Gaming subscriptions plunged by 30%, likely influenced by significant price hikes for services like Microsoft’s Game Pass in late 2025. While 89% of households still maintain a video streaming service, its share of the total payment volume has decreased as consumers become more selective.
The report highlights a shift from passive billing to active management. Consumers are now “switching, pausing, and downgrading” based on immediate needs. Approximately 67% of users now review their recurring charges monthly.
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The behaviour varies by category:
- High Stickiness: Food and grocery services have the highest return rate (48%), with most users reactivating within three months because the services are embedded in daily life.
- Lower Retention: AI subscriptions have a low return rate (15%), but those who do return tend to do so within six months.
- Content Churn: 46% of users keep entertainment subscriptions only when specific content is available, pausing them once they have finished a particular series or season.
Ultimately, the data suggests that South Africans are increasingly viewing subscriptions through the lens of value and necessity rather than pure leisure.
