Float, Africa’s first card-linked instalment platform has unveiled the latest shopping trends among credit card holders using its payment method.
With an impressive average order value of close to R10,000, order values through the platform significantly exceeds those of the regular buy now pay later model, which typically ranges between R1,000 and R1,400.
The latest trends released by Float are clear indicators of credit card holders’ most favoured goods, shopping behaviour and retail categories.
With most South Africans cash-strapped due to increased inflation, high interest rates and record unemployment, Float’s card-linked instalment platform, which splits credit card purchases into interest-free monthly instalment plans is gaining traction as a more responsible and budget-friendly way to pay with a credit card – especially for big-ticket purchases.
Paul Masson, CFO and COO of Float, explains, “Card-linked instalments allow shoppers to use the available limit on their existing credit card more efficiently. By splitting payments into manageable, interest-free instalments, consumers can manage their cashflow without taking out any new loans or debt, and without incurring hidden fees, or additional interest. It’s a smarter way to make the most of their credit line.”
The company’s data confirms that South Africans enjoy shopping on Tuesdays, making it the top day of the week for transactions. Interestingly, Mondays lead in terms of the highest spend per day. Unsurprisingly, the week that consumers do the most shopping is from the 24th to the end of the month. Across the board, 60% of shopping happens during working hours with 14h00 being the most shopped hour of the day.
Although the fitness category saw the highest single transaction, with one customer spending R178,000 on gym equipment. Electronics and appliances are the top retail category, followed by leisure, sports & hobbies and furniture & homeware.
Shoppers primarily use card-linked instalments to make bigger purchases, which positively impacts merchant sales; a recent study showed orders processed via the platform are on average 134% bigger than regular orders. Corresponding to the spend levels, the highest average order values are in the categories of electronics and appliances, followed by leisure, sports and hobbies and then furniture and homeware.
“As anticipated, electronics and appliances remain our leading category. We’ve also seen a significant increase in spending towards home improvement and the automotive sectors. Interestingly, Float shoppers continue to prioritise spending on productive assets. Business owners, knowledge workers and artisans use Float as a cashflow tool to buy equipment that helps them earn a livelihood,” adds Masson.
As consumers start preparing their Black Friday and Christmas wish lists, consumers can now shop for big-ticket items and split their credit card purchases into bite-size monthly repayments, giving them more time to settle their credit card balances.
“With the cost of living soaring and interest rates still at historical highs, consumers’ finances remain under immense pressure. Float is designed as a financial tool that gives consumers breathing room particularly when making larger purchases,” concludes Masson.
