SA consumers shopped till they dropped in December

South African consumers shopped till they dropped in December 2024, with the holiday month living up to its reputation as a peak shopping month.

The latest data from BankservAfrica shows healthy spending growth, with the total cash value processed at R87.7 billion, a 4% increase from the R81.5 billion consumers spent in December 2023.

BankservAfrica is the largest automated payments clearing house in Africa. It clears and processes billions of card, cash, and account-based transactions annually to enable safe financial payment services.

“The continued year-on-year seasonal uptick highlights the December holidays as a significant contributor to the economy. The month also reflected steady spending patterns following Black Friday’s strong performance,” Solly Bellingan, head of marketing at BankservAfrica, says.

Following the diverse ways of paying among South Africans, BankservAfrica took a closer look at the interbank transactions flowing across its multi-rail payments infrastructure to uncover the main spending trends. It found that essentials topped the list for spending on cards, while the demand for cash remained at high levels, and festive cheer spilled over to the digital marketplace.

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Consumers mainly shopped for food and other necessities

According to the BankservAfrica card data, consumers prioritised their spending on essentials, such as food and other necessities, as well as transport, over the holidays. The average card spend was R588.

An analysis of shopping trends across key categories reveals that the highest spend in December was at grocery stores and supermarkets. Fuel purchases at service stations came in second, followed by eating out at restaurants.

“Card spending remained robust, with most of it centred on everyday items, perhaps signalling how South Africans are choosing to prioritise their spend in the current economic environment,” Bellingan says.

But one shopper showed no restraint when it came to Christmas spending, forking out R175 000 at a jewellery store, the highest card spend for a luxury item.

The total value of cash orders processed through BankservAfrica’s Integrated Cash Management Service (ICMS) totalled R87.7 billion in December 2024. Bellingan points out that the ICMS data reflects the combined total of physical cash orders by commercial banks for their respective ATM and branch networks.

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Cash orders peaked on three dates

Cash orders peaked on 2 December with a cash value of R5.2 billion and again on 13 December with a cash value of R6.7 billion and finally on 27 December with a cash value of R5.8 billion.

“Like we observed in previous years, cash orders surged in the lead-up to the public holiday on 16 December, as banks prepared to ensure the adequate availability of physical notes and coins at their branches for the busy season.

“The other major day was on 27 December, with cash orders reaching a value of R5.8 billion ahead of the New Year’s Eve celebrations,” Bellingan explains.

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Consumers also shopped online a lot more

According to BankservAfrica’s 3D-Secure online card authentication service, online shopping unwrapped impressive results over the holiday season, with volumes stacking up by 30% year-on-year and the total value at 50% higher than in 2023.

“The strong performance reflects the increasing appeal of online shopping. Convenience, paired with competitive offers over the holidays, sparked a surge in seasonal spending and highlighted the growing reliance on e-commerce,” he says.

The highest volumes were at mobile network operators, where consumers spent on digital and connectivity, followed by entertainment at online betting and gambling outlets, online grocery stores, and large retailers.

Bellingan says overall, the holiday spending trends reveal the varied payment preferences across the financial ecosystem.