December 2024 holiday consumer spend shows signs of growth

Photo by Sora Shimazaki: https://www.pexels.com/photo/love-paper-bags-with-sale-text-5926462/

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

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

In keeping with the diverse ways of paying among South Africans, BankservAfrica took at closer look at the interbank transactions flowing across its multi-rail payments infrastructure to uncover the main spending trends.

Essentials topped the list for card spend

According to the BankservAfrica card data, South Africans chose to prioritise their spending on essentials, such as food and other necessities, and 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 centered on everyday items, perhaps signalling how South Africans are choosing to prioritise their spend in the current economic environment,” says Bellingan.

However, one shopper showed no restraint in their Christmas spending. According to our data, the highest card spend was for a luxury item worth R175,000 at a jewellery store.

Cash demand remained at high levels

The total value of cash orders processed through BankservAfrica’s Integrated Cash Management Service (ICMS) totalled R87.7bn in December 2024. The ICMS data reflects 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 R81.5bn reflected in December last year,” says 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 R5.2bn, R6.7bn, and R5.8bn respectively.

“Similar to what we’ve observed in 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 R5.8bn ahead of the New Year’s Eve celebrations,” says Bellingan.

Festive cheer spreads across the digital marketplace

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,” says Bellingan.

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

Overall, the holiday spending trends reveal the varied payments preferences across the financial ecosystem.

“BankservAfrica remains committed to delivering sustainable payment solutions that facilitates economic transactions and meets the evolving payments needs of South Africans,” ends Bellingan.