Sa Records Surge In Online Spend Ahead Of Black Friday

Absa has reported a significant surge in e-commerce spending ahead of the looming Black Friday shopping spree.

The bank said in a trade update on Monday that it had noted a significant increase in the total value of e-commerce transactions over the past year, with total turnover increasing 25 year-on-year y-o-y in the first quarter. Online turnover value rose 16 in the second quarter and 19 in the third quarter, y-o-y.

The data suggests that consumers are increasingly embracing the convenience, variety and efficiency of online shopping, which bodes well for retailers with an online presence ahead of Black Friday.

While the average value of e-commerce transactions has grown from roughly R350 to R430 between the beginning of 2023 and the third quarter of 2024, the average value of physical retail transactions has dropped slightly from about R350 to R340 during the same period.

Managing executive for product at Absa Relationship Banking, Chris Wood, said the bank had observed a shift towards higher online spending, with fewer but higher-value transactions indicating a preference for larger purchases online.

In physical stores, both total transaction numbers and turnover are growing steadily, though at a lower average ticket price, suggesting that consumers are making smaller, more frequent purchases. This trend aligns with general consumer behaviour in South Africa, where shoppers show confidence but are mindful of purchase sizes, Wood said.

Absa added that it expected continued growth in total online and in-store spending, particularly around the Black Friday period.

Digital wallet usage is also expected to peak towards the end of Black November.

Digital wallet usage, especially among Absa customers who use Google Pay and Samsung Pay, has surged over the third quarter of 2024, with an average transaction value of around R320, said Tshipi Alexander, executive for Card Issuing and Rewards at Absa Everyday Banking.

Although Absa typically sees transaction volumes peak on Black Friday, recent history suggests that a significant portion of Black Friday or Black November spending still occurs on the Monday after Black Friday, also known as Cyber Monday.

Analysing Absa-issued cards specifically, average transactions per second peaked at 61 on Black Friday last year, dropped slightly to 57 per second on Saturday, and reached 43 on Cyber Monday.

In anticipation of the surge in transaction volumes during Black Friday and Black November, Absa said it had implemented a range of strategic measures to bolster the resilience and capacity of its payments acceptance infrastructure, including infrastructure scaling, enhanced system monitoring and support, fraud prevention and security measures.

The bank said its fraud prevention capabilities would be on heightened alert during the period.

We will monitor for suspicious activities and contact our customers where we identify transactions that may be fraudulent, Alexander said.

Its important to remain vigilant and only approve transactions you have initiated. Read the authorisation notification carefully and confirm that the merchant name and transaction amount match the transaction you intend to conclude.

Also ensure you have your transaction notification service activated. If you see any suspicious transactions, report it to your banks fraud hotline immediately, he said.