Average value of online transactions exceeds that of physical retail, says Absa

New data from Absa shows that the average value of online shopping transactions in South Africa is increasing, while in physical stores the opposite is happening.

While the average value of e-commerce transactions among Absa customers increased from around R350 to R430 between the start of 2023 and the third quarter of 2024, the average value of physical store retail transactions increased decreased slightly from around R350 to R340 over the same period. period.

“Absa noted a significant increase in the total value of e-commerce transactions over the past year, with total revenue increasing 25% year-on-year in the first quarter, 16% year-on-year in the second quarter and 19% over one year. in the third quarter,” the bank said in a statement Monday.

“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 have seen a shift towards higher online spending, with fewer but higher value transactions, indicating a preference for larger purchases online,” said Chris Wood, chief product officer at Absa Relationship Banking, in the press release.

“In physical stores, total transactions and turnover are steadily increasing, albeit at a lower average ticket price, suggesting consumers are making smaller, more frequent purchases. This trend aligns with general consumer behavior in South Africa, where shoppers demonstrate confidence but are mindful of the amount of purchases.

Digital wallets

Absa said it has also seen an increase in the use of digital wallets, particularly among those using Google Pay and Samsung Pay. He expects that figure to peak toward the end of November, around Black Friday. The average transaction value through these digital wallets is now around R320.

Read: High 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 takes place on the Monday following Black Friday, also known as Cyber ​​Monday. Looking specifically at Absa-issued cards, the 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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