Bank expects over R3 billion in spend over the Black Friday weekend
FNB says the improved economic landscape and sustained recovery in consumer income, will likely boost sales on Black Friday and Cyber Monday compared to 2023. With the increase seen in retailers offering extended specials over the course of the month or week leading up to Black Friday, the bank expects spend to exceed R3 billion over the Black Friday weekend and anticipates a significant shift towards digital payments.
CEO of FNB Card, Senzo Nsibande says “As we approach Black Friday, we are witnessing a convergence of factors that point towards a vibrant shopping season. Digital wallet usage is projected to surge by over 40% year-on-year, reflecting the broader trend of digital adoption among consumers. Online sales are expected to grow by more than 10%, indicating the increasing preference towards e-commerce platforms. Conversely, traditional in-store sales and cash usage is expected to decline.
The bank’s data also shows that while categories like electronics and household items traditionally dominate Black Friday sales, there is notable growth to be seen in other sectors such as travel-related spending.
On the acquiring side, FNB Merchant Services recently processed 18.4 million on general spend transactions over the course of October 2024 which is approximately 400 000 more than what was processed the prior year on Black Friday at 18 million. This early indicator has led to a positive outlook with an estimate of 19.5 million transactions expected to be processed by FNB Merchant Services this Black Friday.”
While the bank is excited about the growth and continued adoption of digital payment methods, it’s also encouraging to see retailers and consumers embrace alternative ways of shopping. “As a financial services provider, we offer several ways for our customers to shop conveniently and safely on their debit, Fusion, credit, and virtual cards on the FNB App with the virtual card being the safest way to shop online thanks to the dynamic CVV functionality,” adds Nsibande.
“We also believethat several economic factors are contributing to the positive outlook for Black Friday 2024. Unlike last year, this year’s Black Friday will fall after payday for many South Africans, potentially boosting spending power. Moreover, reliable power supply is expected to facilitate smoother shopping experiences, both online and in-store,” says Nsibande.
Interest rate cuts and lower inflation are also likely to increase consumer purchasing power. While encouraging customers to take advantage of Black Friday and Cyber Monday deals, FNB continues to stress the importance of responsible spending. “To avoid excessive spending, we encourage our customers to accessour Nav>> Smart Budgeting functionality on the FNB App to manage, set up and track their budgets over this time. They should also consider using their eBucks when shopping to optimise their budgets” adds Nsibande.
“To mitigate the chances of falling victim to fraud, we urge customers to remain vigilant when making transactions. Most importantly, we want to emphasise the importance of never sharing one-time passwords (OTPs), device passcode, PINs, CVV numbers and to keep their card and PIN details safe as with all other sensitive personal information,” concluded Nsibande.
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