Absa’s Merchant
Spend Analytics:
September 2024

Is the two-pot retirement system giving consumers extra money to spend?

We know the financial health of the consumer has been under strain for a prolonged period, leading to a decline in card spending and volumes.

The latest Merchant Spend Analytics reports how consumers may be using a portion of their two-pot retirement system payouts to settle short-term debt and restore household spending. The report outlines how to factors such as delayed payouts, the processing of tax directives, consumers channeling funds towards reducing debt and consumer uncertainty about withdrawing retirement funds may have contributed to the decrease in consumer spending.

The report offers insights on consumer spending habits, derived from a vast array of card transaction data. By examining patterns and trends within this data, we have gained valuable insights into the preferences, behaviours and spending power of consumers across various categories.

Key highlights:

• Month-to-month: September 2024 showed a decline in card spending and transaction volumes.
• YTD figures ending in September 2024: Deceleration in card spending and transaction volumes compared to the same period in 2023.
• Debit card vs credit card: Credit card usage continues to outpace the use of debit cards.
• Online spending vs in-store spending: Online spending continues to enjoy double-digit growth.