Hot on the heels of yet another interest rate increase adding more yet squeeze on businesses and consumers alike, South Africans showed they still have an appetite for retail spend, with data from leading omnichannel payment solutions provider Ecentric Payment System’s 2022 Black Friday Payment Gateway Dashboard showing whopping increases in both transactions volume and value, when compared to 2021.
By 1pm on Cyber Monday, total transaction value had grown 305,36% compared to the same time the year before. This was not isolated to Cyber Monday, as the transaction value growth on midnight after a full Black Friday was 212,11% up compared to the year before.
Total transaction volume by 1pm on Cyber Monday had grown by 59,36% over the previous year by midday, having grown 119,73% by midnight after a full Black Friday.
Wesley Fetter, Product Manager at Ecentric Payment Systems says that while they had expected growth, it is always encouraging to see it pan out as expected across industries. “Our customers represent various verticals, including fast moving consumer goods, financial services, hospitality, healthcare and more, and it is heartening to see trade volume and value grow so substantially despite the difficult economic conditions.”
He says that the volume and value growth was caused by increased consumer demand, as well as by a wider book of customers using Ecentric’s platform for their payment solutions, which already includes 65% of the JSE listed retailers and represents 20% of South Africa’s card transactions. “The fact that more businesses are adding our omnichannel platform is testament to a vibrant ecommerce landscape in the country, and the fact that more transactions are occurring is a sign of a consumer base that still demonstrates a willingness to spend.”
Wesley Fetter says that it is not only volume that attracted attention, with the biggest single purchase on Black Friday was an R82 020 transaction, while the biggest single purchase on Cyber Monday was valued at R300 000.
E-commerce is growing rapidly, both around the world and in Africa, and it is becoming increasingly important for vendors to cater to customers who want to shop and pay for their purchases in a safe, convenient manner and on the channel of their choice. “The technology to enable this is crucial,” says Fetter, pointing to the need for a platform that can manage increasingly more transactions.
“This is why we have assembled industry experts and invested in a one-stop, omnichannel payment solution ecosystem. A provider must provide the tech, expertise and infrastructure that places its clients in control of their payments and reconciliation.”
The quickest transaction on Black Friday took just 75 milliseconds, while the fastest transaction on Cyber Monday was 136 milliseconds.