FNB is seeing continuous growth in online shopping spending by its credit card holders. January 2015 statistics reveal that online shopping now accounts for 12% of total credit card purchases, a 7% increase from the same period in 2014.
The majority of these online transactions, 36%, were done on online retail and entertainment websites followed closely by professional services such as school fees, university fees, and professional-membership subscriptions.
“An increasing shift suggests that South Africans are realising the convenience that online shopping offers. The desire to view products in store is quickly being overtaken by the time it saves to select and order items online,” says Chris Labuschagne, CEO of FNB Credit Card.
More importantly, the efforts by online retailers, banks and card issuers to assure users of the security of online shopping, have paid off.
“Improved communication, tracking systems and continuously evolving secure transacting technology all ensure consumers of the safety of online shopping and the protection of their details, as well as delivery of their purchase,” notes Labuschagne.
The age group 20 – 30 has showed the most significant increase in online spend. This is in accordance with consumer trends of instant gratification and the always-on culture of, particularly young professionals.
As online shopping evolves, retailers will continue to enhance their offerings in order to fit the needs of different consumers. Most recently, local major retailers have started pilot phases of the concept “click and collect” which will see same day deliveries to an allocated box, for example at a fuel station or an office block, in order to add to convenience and cut down on delivery time.
“It is expected that online shopping will grow exponentially in the coming year and we encourage consumers to make use of the value that shopping online with credit cards offer,” concludes Labuschagne.