Black Friday in full swing across S.A

Black Friday has taken South African e-commerce by storm, with local online retailers poised to capitalize on the annual sales event at the end of the month. The tradition of Black Friday, originally from the United States, has gained significant popularity in recent years in South Africa and is now considered the kickoff to the festive shopping season. Thomas Pays, co-founder and CEO of i-Pay, and Fred Baumhardt, CEO of Curve Group, joined CNBC Africa to discuss the impact of Black Friday on the e-commerce industry in the region. Pays highlighted that many retailers have experienced significant growth compared to the previous year, surpassing their sales targets by midday. The volume of e-commerce transactions on Black Friday alone has accounted for approximately 10% of the entire month's sales for many online retailers. Some major retailers are generating between 10 to 40 million in sales on Black Friday, a substantial increase from their regular business. Baumhardt emphasized the importance of digital inclusion in allowing more people to participate in online transactions, especially in Africa where a significant portion of the population is underbanked. While South Africa boasts a high penetration rate of about 70% for online payment methods like credit cards, there is still a vast opportunity to expand e-commerce in the rest of Africa. The CEO of Curve Group outlined the need to educate new digital users on online security measures to prevent scams and phishing attacks. The company has invested in digital literacy programs to address these challenges and ensure safe online transactions for all consumers. One of the main challenges faced on Black Friday is the strain on existing payment infrastructures, with some websites experiencing over 200,000 concurrent visitors. Pays highlighted the limitations of traditional banking systems in processing high transaction volumes and advocated for alternative payment solutions like i-Pay. i-Pay offers an automated EFT payment solution that streamlines the online payment process and provides a secure alternative to credit card transactions. The issue of online security remains a top concern for consumers shopping online, with companies urged to implement robust safeguards to protect sensitive personal and financial information. Overall, Black Friday presents a significant opportunity for South African e-commerce to thrive and reach new heights in online sales, with the potential for continued growth in the coming years.