Absa’s Merchant
Spend Analytics:
July 2024

Consumers are feeling the pinch! South African consumers’ financial health is under significant strain due to inflation, high interest rates and global economic challenges which have burdened them with debt. Despite a slight increase in real take-home pay for consumers, the growth is insufficient to keep up with the rising cost of living and high levels of debt.

In this edition, we use data-driven insights from various sources to delve into the landscape of debt in South Africa and explore how the debt burden is shared across demographics.

We are also pleased to share the latest Merchant Spend Analytics Report. As a leading merchant acquirer, we pride ourselves on using a unique vantage point in consumer spending insights to guide your business through today’s spending trends.

By leveraging our extensive transactional data, we aim to give your business a bird’s-eye view on current consumer spending trends, evolving preferences and emerging market shifts.

This month’s MSA report presents the following key findings:

• Month-to-month (MTM): Positive uptick in consumer spending and transaction rates driven by improved performance of the tracked consumer spending categories.
• Year-to-date (YTD): While essential categories such as food have experienced slow growth, discretionary spending has demonstrated resilience with above-inflation rate performance.
• Credit card usage appears to be growing faster than debit card usage. This seems to be reflective of a tough consumer environment.
• Data suggests that consumers have developed a durable preference for online shopping.
• In the spotlight: Internal data reveals a sustained downward trajectory in spending and market share for the building and hardware category.