Float, Africa’s first card-linked instalment platform, has unveiled the latest shopping trends among credit card holders using its payment method – revealing their most favoured goods, shopping behaviour, and retail categories.
With an impressive average order value of close to R10 000, order values through the platform significantly exceeds those of the regular buy now pay later model which typically ranges between R1 000 and R1 400.
With most South Africans cash-strapped due to increased inflation, high interest rates, and record unemployment Float’s card-linked instalment platform – which splits credit card purchases into interest-free monthly instalment plans – is gaining traction as a more responsible and budget-friendly way to pay with a credit card. Especially for big-ticket purchases.
“Card-linked instalments allow shoppers to use the available limit on their existing credit card more efficiently,” explains Paul Masson, chief financial officer and chief operating officer of Float. “By splitting payments into manageable, interest-free instalments consumers can manage their cashflow without taking out any new loans or debt – and without incurring hidden fees or additional interest. It’s a smarter way to make the most of their credit line.”
The company’s data confirms that South Africans enjoy shopping on Tuesdays – the top day of the week for transactions. Interestingly, Mondays lead in terms of the highest spend per day. Unsurprisingly, the week that consumers do the most shopping is from the 24th to the end of the month. Across the board, 60% of shopping happens during working hours with 14h00 being the most shopped hour of the day.
Although the fitness category saw the highest single transaction – with one customer spending R178 000 on gym equipment – electronics and appliances are the top retail category followed by leisure, sports and hobbies, and furniture and homeware.
Shoppers primarily use card-linked instalments to make bigger purchases which positively impacts merchant sales; a recent study showed orders processed via the platform are on average 134% bigger than regular orders. Corresponding to the spend levels, the highest average order values are in the categories of electronics and appliances followed by leisure, sports and hobbies, and then furniture and homeware.
“As anticipated, electronics and appliances remain our leading category,” says Masson. “We’ve also seen a significant increase in spending towards home improvement and the automotive sectors. Interestingly, Float shoppers continue to prioritise spending on productive assets.
“Business owners, knowledge workers, and artisans use Float as a cashflow tool to buy equipment that helps them earn a livelihood,” he says.