PODCAST | Consumers seek out value on Black Friday, Absa says

Black Friday through the lens of transaction data is the focus of this edition of the Business Day Spotlight. 

We hear from payment provider Payfast, which said one South African had already spent R234,448 in a single online purchase on its platform, while the smallest transaction of the day so far was valued at just R5. As of noon on Friday, the average basket size is R1,633. Payfast saw a spike in transactions between 7am and 9am, as consumers raced to get their online orders in before the best deals were sold out.

Our host Mudiwa Gavaza is joined by Tshipi Alexander, head of card issuing at Absa Everyday Banking, and Vish Chetty, executive for payments acceptance at Absa Relationship Banking.

Alexander reports that the bank processed a R462,000 accommodation transaction by 8am, and by midday another customer paid about a million rand for furniture.

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Chetty says the largest transaction he had seen through the day was a single card swipe for more than R500,000. He explains that South Africans appear to be getting more comfortable with doing their shopping online, with ever-increasing amounts spent. 

With consumers being said to be under pressure, Alexander says this has not stopped South Africans from seeking out good deals and value, which is backed up by transaction data. 

The team says the data continues to show a move towards digital payments, with card as a method of payment expected to continue to grow over time. The panel also explains that while much of the activity has been around Black Friday, specials and promotions by retailers through the month of November have been big drivers of transaction activity. 

Topics of discussion include: Black Friday transaction data from Absa; trends from the retail event; the growth of e-commerce in SA; consumers seeking out value; efforts to increase digital payments; and the outlook for the year ahead. 

Business Day Spotlight is a TimesLIVE Production.