6 hours ago
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LAGOS – Absa has noted a significant increase in the total value of e-commerce transactions over the past year, with total turnover increasing 25% year-on-year in the first quarter, 16% year-on-year in the second quarter and 19% year-on-year in the third quarter.
The data suggest 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.
“We’ve observed a shift towards higher online spending, with fewer but higher-value transactions indicating a preference for larger purchases online,” says Chris Wood, managing executive for product at Absa Relationship Banking.
“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.”
Absa expects 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,” says 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. Looking at Absa-issued cards specifically, average transactions per second peaked at 61 on Black Friday last year, dropping slightly to 57 per second on Saturday, and reaching 43 on Cyber Monday.
“With Absa Rewards now free, customers are expected to maximise this benefit this Black November,” adds Alexander. “Depending on their Rewards Tier, Absa Rewards members will receive up to 100% in real cash back during the Black Friday period. Customers who join Absa Rewards over this period will also be eligible for the offer.”
