Capitec Bank sees 32% surge in credit card book amid rising client usage: Report

April 23, 2026: Capitec Bank reported a 32% increase in its credit card book for the financial year ended February 28, 2026. It was driven by higher usage among existing clients and strong adoption among younger customers. Reflecting a shift toward transaction-led growth and more profound client engagement, according to a report.

Credit Card Growth and Usage Trends

The South Africa-based lender recorded a 32% expansion in its credit card portfolio, supported by a 44% rise in spending on existing credit limits. The capitec bank also saw a comparable increase in newly approved or expanded credit limits, highlighting both organic growth and new customer acquisition.

Adoption among younger clients accelerated sharply, with credit card growth in this segment rising by 147%. Analysts said that the growth is becoming more and more skewed toward people with higher incomes. These people tend to use credit cards more for transactions than for borrowing, which makes credit quality better and the risk of default lower.

This trend signals a shift from traditional credit-driven expansion to usage-based engagement, with repeat spending on existing limits emerging as a key driver of revenue stability.

Shift Toward Non-Interest Income

Capitec’s earnings profile is becoming more diversified, with non-interest income contributing a larger share of overall revenue. Growth in fintech payments and insurance segments has outpaced the core lending business, indicating a broader strategic pivot.

Analysts highlighted that transaction-based income streams, including payments, mobile services, and value-added offerings, are becoming more significant. These revenue streams are generally less cyclical than unsecured lending, offering greater resilience during economic downturns.

The capitec bank is becoming more dependent on annuity-style income from repeat client activity. It suggests a more predictable earnings base than growth that comes only from new credit issuance.

Capitec Bank: Zero-Fee International Strategy

A key differentiator in Capitec’s offering is its zero-fee international transaction model, which eliminates both foreign exchange commissions and international transaction charges. The bank stated that this pricing structure is embedded in its operating model rather than subsidised by other business lines.

While the capitec bank generates only a modest profit from these transactions, the strategy aims to improve customer retention and expand engagement across its broader suite of services. Clients attracted by low-cost international usage are more likely to adopt additional South African banking products, strengthening long-term relationships.

This approach aligns with the bank’s broader strategy of building an ecosystem where customer activity and engagement drive returns, rather than relying solely on lending margins.

Competition in South Africa’s payments and credit card growth market is intensifying, with both traditional banks and fintech players targeting digitally savvy consumers. Retail-focused companies and financial institutions are expanding low-cost, app-based offerings to capture a larger share of consumer spending.

Despite rising competition, Capitec continues to benefit from its scale, with an estimated client base of around 26 million. Analysts say this allows the bank to maintain low fees while sustaining profitability, particularly as it deepens primary relationships with customers.

Established players are defending their market share, while newer entrants focus on innovation and customer acquisition across income segments. However, Capitec’s emphasis on simplicity, pricing, and customer-centric products has helped it maintain a competitive edge.

Risk Outlook and Economic Context

The bank is preparing for a more uncertain macroeconomic environment by adjusting its internal stress scenarios. Management indicated that it has removed optimistic projections and increased the severity of downside scenarios to reflect rising global and domestic risks.

Analysts noted that while the growing share of non-interest income improves resilience, it does not fully insulate the bank from economic pressures. Transactional activity and insurance income remain linked to consumer behaviour, which can weaken under adverse conditions.

Global developments, including volatility in energy markets, are being closely monitored due to their potential impact on South African consumers and overall credit demand.

Even as credit conditions begin to normalise after a period of strong growth, Capitec’s evolving business model, centred on client engagement, diversified income streams, and digital innovation, positions it to navigate a shifting financial landscape.