New data from Absa shows the average value of online shopping transactions in South Africa is growing, while in physical stores the opposite is happening.
While the average value of e-commerce transactions among Absa clients has grown from about R350 to R430 between the beginning of 2023 and the third quarter of 2024, the average value of physical store retail transactions has declined slightly from about R350 to R340 during the same period.
“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 bank said in a statement on Monday.
“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,” Absa added.
“We’ve observed a shift towards higher online spending, with fewer but higher-value transactions indicating a preference for larger purchases online,” said Chris Wood, managing executive for product at Absa Relationship Banking, in the statement.
“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.”
Digital wallets
Absa said it has also seen a spike in the use of digital wallets, especially among those who use Google Pay and Samsung Pay. It expects this to peak towards the end of November, around Black Friday. The average transaction value through these digital wallets is now around R320.
Read: Big hopes for a robust Black Friday in 2024
“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,” Absa said. – © 2024 NewsCentral Media
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