In a challenging economic landscape marked by inflation, high interest rates, and rising unemployment, South African consumers are turning to flexible payment solutions to manage their spending. Float , a South African card-linked instalment platform, recently released data revealing notable shifts in shopping trends, especially among credit card users opting for instalment-based payments.
While traditional Buy Now, Pay Later BNPL platforms typically cater to smaller purchases, Float's system is designed for big-ticket items, allowing credit card holders to split their purchases into interest-free monthly instalments. This model has gained traction as consumers look for ways to manage their cash flow without taking on additional debt.
The average order value on Floats platform-close to ZAR 10 K USD 560.00-dwarfs the typical BNPL transaction size of around ZAR1 K - ZAR 1.4 K USD 56 - USD 78 in South Africa, the company claims. This indicates that consumers are primarily using the service for larger purchases, such as electronics, appliances, and fitness equipment.
The data also reflects broader shopping behaviours Tuesdays see the highest transaction volume, while Mondays lead in terms of total spending. Additionally, most transactions occur during work hours, with 2 PM being the peak shopping time.
While the fitness category had the single highest transaction ZAR 178 K USD 10 K on gym equipment, electronics and appliances dominate overall, making up the largest portion of retail spending. Float's data further highlights how the instalment option encourages consumers to spend more per transaction, with orders processed via the platform averaging 134 percent larger than regular credit card purchases.
