The decision by online merchants to extend the sales period for discounted items from ‘Black Friday’ to ‘Black Friday week’ – inclusive of Cyber Monday – led to the surge in sales by 83% compared to the 2023 daily average across Kenya, Nigeria and South Africa.
- •According to the online payment service, PayU GPO, the average basket size also increased by 11% year-on-year (Y-o-Y).
- •The discount period also saw the average transaction value surge by 13% compared to the period between 20-23rd November.
- •Card payments rose by 85% during the period, with the number of customers paying using mobile payment solutions also rising by 7% compared to last year.
“While payment methods continue to evolve each year, it’s fantastic to see consumers adopting saved digital cards, and benefitting from the additional security they bring. This trend stands as a promising precursor to the potential uptake of PayShap once “Request to Pay” makes its entrance into the market,” Karen Nadasen, CEO PayU South Africa, said.
PayU GPO also recorded 89% approval rates across the three key e-commerce markets. Although sales in e-commerce industry have marginally declined compared to 2022, there has been a notable revival in purchases of beauty products, fashion, travel , entertainment utilities, and electronics.
“In Africa, where consumers are grappling with soaring interest rates and increased costs, shopping events like this create a win-win for both consumers and merchants,” Nadasen said.
Moreover, 50% of the customers opted for frictionless card payments and API-based EFT payments. This has facilitated cross-border transactions thus spurring opportunities for finance-oriented companies like PayU GPO to serve an even greater market. Currently, PayU GPO connects 450,000 merchants with millions of consumers in over 30 global markets.
When the month began, Jumia Kenya launched a 30-day ‘Black Friday’ campaign for over 10 million products at discounts of up to 50%. The e-commerce company is gaining on Kenya to revamp its fortunes in the continent after pulling out of South Africa and Tunisia.
The proliferation of fintechs that provide seamless online payment platforms and e-commerce startups positions the continental market to hit a valuation of US$113 billion by the end of this decade.