One early Black Friday shopper has spent R1.7 million

An early Black Friday shopper has spent R1.7 million over 21 transactions using Ozow on Tuesday, 26 November 2024.

This is according to Ozow’s Black Friday dashboard, which started tracking purchases for the annual shopping event this week.

On Friday morning, the single highest transaction tracked by the dashboard was for R100,000.

Topping the list of customers who used Ozow’s payment gateway on Black Friday morning is someone who spent R826,000 over 12 transactions.

Looking at Ozow’s top customers in the retail industry, the biggest spender paid R63,000, while a single customer made seven transactions.

The dashboard is designed to provide insight into customer spending during Black Friday. It resets daily at one minute past midnight.

While Black Friday started as a shopping event on the Friday after Thanksgiving in the United States, it has become a month-long affair in South Africa.

“The early indicators from this Black Friday period are extraordinary,” said Ozow co-founder and CEO Thomas Pays.

“Before the main event has even begun, we have already processed transactions from a single consumer of R1.7 million, which is unprecedented.”

Pays said this demonstrates the growing confidence South African consumers have in digital payments.

“We are seeing firsthand how digital payments are transforming the online landscape, and we expect this Black Friday to set new records for online transactions.”

Ozow said the 2023 Black Friday period marked a transformative moment in South Africa’s digital payment landscape.

“Account-to-account payments emerged as a preferred choice for online shoppers,” it said.

These are transactions where parties transfer funds directly between two accounts, bypassing intermediaries such as credit card networks or payment processors.

“Consumer behaviour data reveals a significant shift in shopping preferences, with three out of four South Africans now opting for digital purchases over traditional retail experiences,” Ozow found.

“The iconic scenes of early morning queues and crowded stores that once characterised Black Friday have transformed into a seamless digital experience, with consumers preferring the convenience and efficiency of online shopping.”

Ozow said this transition reflected not just a change in shopping habits, but a fundamental evolution in how South Africans approach major retail events, prioritising comfort and convenience.

“The overall processing value during Black Friday week showed remarkable resilience, achieving a 5% increase compared to 2022,” Ozow said.

“This growth is particularly noteworthy given the challenging economic climate. Cyber Monday emerged as a significant growth driver, recording an 8% increase from the previous year, indicating the expanding nature of the Black Friday trading period.”

Ozow said its retail sector performance demonstrated exceptional growth, with a 35% increase in transaction value on Black Friday itself.

“This momentum continued through Cyber Monday, recording a 36% uplift, contributing to an impressive 32% increase in total processing value across the week.”

The retail industry’s contribution grew by approximately 13% year-on-year, with transaction counts rising by 22.83%.

Daily unique consumer numbers surged significantly, with Ozow reporting that it saw a remarkable 68% increase in active users on Black Friday 2023.

“This growth was particularly evident in the retail sector, where average transaction values increased by 29% compared to regular trading periods, demonstrating both broader adoption and deeper engagement with our payment solutions,” it said.

Ozow also said it saw distinct patterns in consumer behaviour during the Black Friday period.

“High-value transactions dominated the morning hours between 8 AM and 11 AM, while transaction volumes peaked between 6 PM and 9 PM,” it said.

“This pattern remained consistent with 2022, indicating established consumer behaviour patterns in the South African market.”

Last year, Ozow’s highest single transaction was R818,000, while its most active consumer completed 133 transactions that totalled R135,900.

“Perhaps most impressively, one consumer conducted 37 transactions totalling R2,767,520 over the week, demonstrating the platform’s capability to handle both high-volume and high-value transaction patterns,” Ozow said.