Monster spending spree for consumers in South Africa

Consumer spending shot up over December 2024 in South Africa, leading to an almost R88 billion haul for retailers—and with one shopper spending R175,000 on a single purchase.

“The continued year-on-year seasonal uptick highlights the December holidays as a significant contributor to the economy,” said Solly Bellingan, Head of Marketing at BankservAfrica.

“The month also reflected steady spending patterns following Black Friday’s strong performance.”

Data from BankservAfrica card data showed that South Africans prioritised their spending on the essentials, such as food, other necessities, and transport, over the holidays.

The average card spend over the period was R588.

The analysis of shopping trends across key categories also revealed that the highest spending occurred in December 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.”

One shopper, however, showed no restraint in their Christmas spending.

BankservAfrica’s card data shows that the highest card spend was for a luxury item worth R175,000 at a jewellery store.

The total value of cash orders processed via BankservAfrica’s Integrated Cash Management Service (ICMS) totalled R87.7 billion in December 2024.

The ICMS data showed the combined total of physical cash orders by commercial banks for their respective ATM and branch networks.

“The total value increased by almost 4% on the R81.5 billion reflected in December last year,” said Bellingan.

“This figure remains high, showing the persisting seasonal demand for cash among South Africans.”

Cash orders peaked on 2, 13 and 27 December, with cash values of R5.2 billion, R6.7 billion, and R5.8 billion, respectively.

“Similar to previous years, cash orders surged in the lead-up to the public holiday on 16 December, as banks undertook their necessary preparations 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,” said Bellingan.  

Moreover, BankservAfrica’s 3D-Secure online card authentication service showed that online shopping saw impressive results, with volumes increasing by 30% compared to 2023.

The total value of the transactions was also 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.”

The highest volumes were at mobile network operators followed by entertainment at online betting and gambling outlets and then online grocery stores and large retailers.