As South African consumers gear up for another exciting Black Friday shopping season, leading digital wallet provider SOLmate highlights why embracing digital payments can transform your shopping experience this year.
The shift towards digital payments is already evident in South African consumer behaviour, with major banks reporting substantial increases in digital wallet usage. Standard Bank observed an 81% year-on-year growth in digital wallet transactions during Black Friday 2023, while FNB reported an impressive 93% increase in virtual card transactions during the same period.
“The dramatic surge in digital wallet adoption reflects a fundamental shift in how South Africans prefer to pay,” says Jonathan Holden, COO at SOLmate. “As we approach another Black Friday, we want to ensure shoppers understand the significant advantages of using digital wallets for their purchases.”
Here are five key benefits of using digital wallets this Black Friday:
- Swift and seamless shopping – Digital wallets eliminate the need to carry cash or sometimes even physical cards, allowing for quick payments that significantly reduce checkout times during the Black Friday rush. This convenience is resonating with South African shoppers, as evidenced by contactless payments growing to almost 50% of total Black Friday transactions at Standard Bank last year.
- Enhanced security – Digital wallets employ advanced encryption and tokenisation technologies to protect your financial information. There is also no risk of losing physical cash or having it stolen, while digital trails make it easier to track unauthorised transactions. Each transaction requires biometric or PIN verification, adding an extra layer of protection that makes digital wallets significantly more secure than traditional payment methods.
- Real-time budget management – Keep track of your Black Friday spending in real-time with automatic transaction recording and instant notifications. This feature helps shoppers maintain control over their budgets during the excitement of holiday sales. Digital wallets also often include spending analysis tools that categorize purchases and help users set and stick to specific spending limits for different shopping categories.
- Contactless payment benefits – The preference for contactless transactions continues to grow, with FNB reporting a 36% increase in contactless payments during Black Friday 2023. Digital wallets support this trend by enabling completely touch-free transactions, combining convenience with security and health benefits. The technology allows for quick, hygienic payments even in high-traffic shopping environments, reducing physical contact points during the busy shopping season.
- Accessibility that drives financial inclusion – Digital wallets provide financial services to those who might not have access to traditional banking, promoting financial inclusion. Maintaining a bank account can be prohibitively expensive for the unemployed or individuals living below the poverty line. Digital wallets can offer a more cost-effective alternative, enabling underserved populations to access essential financial services, including payments, savings, and remittances.
“The surge in digital payment adoption tells a compelling story about changing consumer preferences in South Africa,” notes Holden. “We’re seeing unprecedented growth in contactless and digital wallet transactions, driven primarily by consumers’ desire for both security and convenience. This transformation in payment behaviour is more than a trend – it’s becoming the new standard for how South Africans prefer to pay.”