South African bank Absa has noticed a surge in the total value of e-commerce transactions over the past year ahead of Black Friday.
The bank has seen growth in total turnover, increasing from 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.
According to Absa, the data suggest that consumers are embracing the convenience, variety and efficiency of online shopping, which is a good sign for retailers with an online presence ahead of Black Friday.
From the start of 2023 to the third quarter of 2024 e-commerce transactions grew from around R350 to R430.
On the other hand, physical retail transactions decreased slightly from roughly 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,” Chris Wood, Managing Executive for Product, Absa Relationship Banking said.
“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.”
Black Friday
Absa expects continued rise in total online and in-store spending, with digital wallet usage expected to peak towards the end of Black November.
Tshipi Alexander, Executive for Card Issuing and Rewards, Absa Everyday Banking said: “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.”
While Absa generally sees transaction volumes peaking on Black Friday, recent history suggests a large amount of Black Friday or Black November spending still takes place on the Monday after Black Friday which is also known as Cyber Monday.
Average transactions per second for Absa-issued cars peaked at 61 on Black Friday last year, lowering slightly to 57 per second on Saturday, and lanidng at 43 on Cyber Monday.
Ahead of the surge in transaction volumes during Black Friday and Black November, Absa has implemented strategic measures to boost the resilience and capacity of its payments acceptance infrastructure.
This includes infrastructure scaling, enhanced system monitoring and support, fraud prevention and security measures.
The bank said that advanced fraud prevention capabilities will be on heightened alert during this period.
“We will monitor for suspicious activities and contact our customers where we identify transactions that may be fraudulent,” Alexander said.
Alexander shares ways people can stay safe this Black Friday:
– 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
– ensure you have your transaction notification service activated, if you see any suspicious transactions, report it to your bank immediately.
IOL Business