FNB sees Black Friday spend topping R3.3 billion as digital payments surge

South Africa’s First National Bank (FNB) expects Black Friday spending to exceed R3.3 billion this year, supported by sustained growth in digital payments, rising online shopping activity and steady consumer demand across the retail sector.

The bank said early 2025 spending trends show continued uptake of secure digital payment tools, positioning this year’s event for “solid activity” both in-store and online.

In 2024, FNB processed more than R5.4bn in transactions on its Speedpoint devices over the Black Friday weekend. E-commerce remained a major tailwind, with online transaction values rising 37% and volumes up 76%. Virtual Card usage climbed 59% year-on-year, contributing over R600 million to Black Friday spend.

FNB said it expects similar patterns in 2025, with digital wallets and virtual cards among the fastest-growing payment options, while cash usage continues to decline. Online shopping is forecast to accelerate further as consumers look for convenience and improved security.

“Customer behaviour over the year shows that South Africans are making deliberate choices about how and when they spend, such as shifting their budgets towards essentials, prioritising discounts, and timing purchases to align with promotional periods,” said Akshay Bhayroo, FNB Credit Card Business Development Head. “We expect digital payments to play an even larger role this Black Friday as customers look for convenience, safety and real value.”

The bank noted that early shopping behaviour is likely to persist. Spending a week ahead of Black Friday increased 25% last year, compared with 7% the year before, and retailers have again released promotions earlier. Grocery, clothing and entertainment categories are expected to remain the most active, with tourism and apparel showing resilience.

FNB also highlighted increased customer reliance on digital safety features, including its Virtual Cards with dynamic CVV and complimentary Purchase Protect insurance of up to R15,000 for qualifying online purchases. Digital budgeting tools such as Nav Smart Budgeting are expected to see higher use as households manage year-end expenses.

The shift mirrors broader consumer behaviour trends: Online purchases made up 42% of all FNB credit card spend last year, a 17% increase, while digital wallets accounted for 18% of in-store transactions, up 43%.

FNB urged customers to remain vigilant against fraud, noting that it will never request sensitive banking credentials.

Absa weighs in on spending cycles

Absa said the timing of Black Friday relative to monthly salary payments remains a key determinant of consumer activity.

“We’ve seen that the timing of Black Friday relative to payday plays a significant role in how consumers engage,” said Isana Cordier, Managing Executive for the Consumer Sector at Absa CIB. “When it falls after most salaries are paid, spending growth is stronger. But when it comes before payday, the lift is far more modest.”

Absa data from 2024 shows home and garden (35%), business and professional services (25%), clothing (16%) and food (13%) led online spend, though none recorded year-on-year growth. In-store purchases were concentrated in food (50%), clothing (16%) and professional services (11%), with food and clothing showing double-digit increases, underscoring the continued strength of physical retail.

Both banks expect consumers to maintain a hybrid shopping approach this year, with online channels expanding at a faster pace, supported by digital convenience, cost-saving strategies and loyalty-driven incentives.

BUSINESS REPORT