Big changes for Discovery Bank customers in South Africa

In a notice sent to Discovery Bank customers, it stated that new partner brands, including Cape Union Mart, Kloppers, and Superbalist, among several others, will be added before the end of 2025.

“Soon you could earn up to 15% back in Discovery Miles on your day-to-day purchases across our expanded selection of fashion, retail, convenience meals, and home partners,” it said.

The bank also announced several Discovery Miles earn rate changes that will take effect from 1 November 2025.

“Earn rates on physical card spend will change. Clients with credit card and suite accounts will get 2% back in Discovery Miles,” it said.

“Clients with transactional accounts and the Discovery account will get 1% back in Discovery Miles. Virtual card earn rates will remain unchanged at up to 15%.”

The Discovery Miles earn rate on transactional accounts and the Discovery account has been reduced from 3%, while the earn rate on credit card and suite accounts has dropped from 5%.

This suggests that the bank is actively trying to discourage customers from using their physical bank cards for transactions and incentivise them to switch to virtual cards if they haven’t already.

While the rewards platform plans to add several new partners by the end of the year, it also announced that an existing partner, Coricraft, will be leaving the home partner network on 1 November 2025.

“Clients will no longer be able to earn up to 15% back in Discovery Miles at Coricraft,” Discovery Bank said.

“However, clients will still be able to earn the base Discovery Miles and shop with their Discovery Miles online or in-store.”

Discovery Bank is also adjusting its partner spend thresholds, which will vary from partner to partner. These thresholds will be updated to either R5,000 or R15,000 per month.

“Starting 1 November 2025, the monthly partner spend threshold will be R5,000 for Nespresso and Volpes, and R15,000 for Dial-a-Bed, Incredible, Jasper & Jute, and Pario Warehouse,” it said.

South Africans saying goodbye to bank cards

Several prominent South African banks are actively encouraging their customers to switch from physical cards to virtual cards and digital wallets, as they offer enhanced security, among other benefits.

It appears to be working. According to a Visa and Discovery Bank survey as part of the SpendTrend25 report, approximately 45% of 1,000 cardholders reported using virtual cards.

“Virtual cards are gaining popularity as a secure and convenient payment method,” the report reads.

Some respondents reported owning virtual cards but not using them. The report says this indicates a need for more education on the benefits of virtual cards.

According to Discovery Bank, the benefits include heightened security, convenience, and versatility.

“Like physical cards, they can be used in-store, online, and in-app, but with added safety to protect sensitive information,” it said.

“Virtual cards are even more convenient as these cards are issued to clients instantly in their banking app, allowing clients to transact immediately as opposed to waiting for a physical card to be delivered.”

Discovery Bank stated that fraudsters are becoming increasingly sophisticated in their targeting of online payments.

“Virtual cards are increasingly being favoured for their enhanced security and control over spend, making them a top choice for digital transactions,” Discovery Bank stated.

FNB’s data also shows that virtual card usage has increased rapidly in South Africa.

According to Ashley Saffy, head of spend and customer value management for FNB Card, 7.2 million of the bank’s virtual cards have been created since first launching the offering in July 2020.

She added that the total spend on virtual cards since their inception had reached R111.2 billion as of 28 February 2025.

Issued on MyBroadband by Myles Illidge | https://mybroadband.co.za/news/banking/612828-big-changes-for-discovery-bank-customers-in-south-africa.html