Latest news with #SpendTrend
RTÉ News
6 days ago
- Business
- RTÉ News
Record 80 million card transactions in May
The latest AIB Spend Trend for May shows that overall spending increased 9% year on year and 2% month on month. The cumulative spend from January to May 2025 is also up 9% when compared with the same time in 2024, indicating that consumer confidence remains strong. According to the figures, May broke records for the most card transactions in a month, with just over 80 million online and in-store transactions by AIB customers. The data shows that grocery spending continues to rise, with an 8% increase year on year. Speaking on RTÉ's Morning Ireland, AIB Head of Consumer Adrian Moynihan said the increase is a combination of inflation and more spending. "If you look at inflation at 1.5% or 2% over the course of this year versus what we're seeing come through in our numbers which is grocery spend up by 8%, inflation is a factor," said Mr Moynihan. "But what we are seeing is increasing consumer spend across groceries in particular. That's something that has been consistent throughout the course of this year so far as well." Good weather and big events also had a part to play in boosting spending last month. Ticket transactions on the 30 May were 76% above average on the day as Metallica tickets for their 2026 concert went on sale. Mr Moynihan said since they started conducting this report they've seen that both fine and bad weather have an impact on spend. "When we had the storms earlier this year, we could see a big increase in hardware as people did repairs to homes and businesses, and equally, when there's good weather, we can see it as well"," he said. "We saw it for example in May with pub spending up by about 10%, that beer garden type weather certainly kicked through and also hardware was up by 3% in May as well as people spent more time in gardens and on DIY," he added. There also was an 8% month on month increase in spending on clothes, with just over a quarter of those buying them aged between 35 and 44. Almost three quarters of all clothes were bought by women. People in Cavan spent the most on clothes per transaction (€72.59), while people in Westmeath spent the least (€58.94).
Irish Examiner
6 days ago
- Business
- Irish Examiner
Consumer spending up 9% in May
Consumer spending during May increased by 9%, compared to the same period last year, driven by additional spending on hotels, pubs, and concert tickets, data from AIB's Spend Trend shows. According to the data, spending in hotels increased 8% year-on-year with Saturday, May 31, being the best day of the year for the sector, particularly in Dublin, likely driven by events such as Bloom and the VHI Women's Mini-Marathon. Spending in pubs also increased 10% month-on-month, with the largest increase in spend in Limerick, up 16%, followed by Louth and Longford, up 15%. The smallest increases were recorded in Wicklow, Roscommon, and Carlow, all of which were up 7%. There was also a surge in ticket purchases on Friday, May 30, as Metallica tickets went on general sale for their two day Aviva Stadium concerts in June 2026. Ticket transactions were 76% above average on the day. In addition, spending in cinemas increased 17%, compared to last year, with the release of two summer blockbusters Mission: Impossible – The Final Reckoning and Lilo and Stitch. Other areas which saw an increase in spending during the month include groceries, which increased by 8% year on year; and hardware, up 6% year-on-year. Spending on electric car charging increased 83% year-on-year. During the first five months of the year, overall consumer spending is also up 9% compared to the same period in 2024. Adrian Moynihan, the head of consumer at AIB, said the increased spending by customers shows 'consumer confidence remains strong and is vital for businesses, enabling them to plan for both peak and off-peak periods throughout the year to effectively meet their customers' needs'. In comparison to April, spending on clothing increased by 8% during May — with 73% of all clothing spending by women and 58% of it was in shops. During the month, people in Cavan spent the most on clothes per transaction at €72.59, while people in Westmeath spent the least at €58.94. The month of May also broke records for most card transactions by AIB customers with just over 80m.
RTÉ News
12-05-2025
- Business
- RTÉ News
Consumer spending levels up 11% in April
April saw continued strong consumer spending levels, up 11% on the same time last year, the latest AIB Spend Trend survey reveals, with online spending rising by 16% while in-store spend was up 6%. AIB said that spending in cinemas over the Easter holidays jumped by 47% compared to April 2024, mainly driven by "A Minecraft Movie" and likely helped by the wet weather over the school break. AIB noted that the best day of the month for cinema spend was Saturday April 5, which was the opening weekend for "A Minecraft Movie". The bank also noted positive indicators for tourism and hospitality as spend in hotels increased by 11% year on year, while restaurant spend also rose, up 10% year on year. It was also a strong month for car rental with spend up 10% year on year, and the number of transactions up 19%. But the average transaction size fell from €115 to €106, the AIB survey noted. Airline spend was also down 8% over 12 months with the average online airline transaction at €247 in April. Today's survey shows that April was a strong month for grocery spend which was up 8% year on year. AIB noted that people in Offaly, Cavan and Roscommon spent the most on groceries per transaction while people in Waterford, Louth and Dublin spent the least. Meanwhile, Mayo (47%), Leitrim (48%) and Roscommon (48%) spend the least online, while Dublin (61%), Louth (58%) and Kildare (55%) spend the most online. AIB noted that Easter Sunday (April 20) had the lowest card spend of any day so far in 2025. Adrian Moynihan, Head of Consumer at AIB, said that it is very positive to see continued strong consumer spend levels in April, up 11% on the same period last year. "With the Easter holidays traditionally a busy time for hotels and restaurants as people take advantage of the break, April saw strong spending increases across the hospitality sector which is a positive sign for businesses," he said.
TimesLIVE
23-04-2025
- Business
- TimesLIVE
SA's spending habits decoded: 10 key insights from the SpendTrend25 report
Discovery Bank and Visa have released SpendTrend25, the third edition of their collaborative annual report of South African consumer spending habits, which is based on an in-depth analysis of credit card spend data. Combining both companies' extensive data sets and analytical expertise, SpendTrend25 tracks how consumer spending habits have evolved between 2019 and 2024 among Discovery Bank clients and the broader South African population. To enhancing the findings of the SpendTrend25 report, this year Visa and Discovery Bank commissioned an independent public survey among a set of South Africans to capture more detailed perspectives on the use of cash and digital payments, use of subscription services, banking security perceptions and the influence of AI on financial behaviour. Over time, SpendTrend insights have become remarkably valuable in identifying how best to offer more relevant, personalised banking that puts our clients in control and provides real rewards that promote financial wellbeing Hylton Kallner, Discovery Bank CEO 'Our latest comprehensive report identifies shifts in financial behaviour for practical insights into how much people spent, what they spent on and how they spent it. We've also supplemented the quantitative analyses with detailed consumer survey data to gain a deeper understanding of the drivers of the trends that we're observing,' says Hylton Kallner, Discovery Bank CEO. 'For example, while we've seen a material shift to digital payments in our spend data, this is backed up by consumer preferences whereby over 80% of South Africans surveyed are choosing cards or digital payments over cash whenever they can, and the same percentage engage more with their credit card rewards and benefits than they did a year ago as they focus on value-based spending. 'And while digital banking has increased client financial safety, three out of five South Africans are more worried about their banking security than a year ago. 'It's findings like these that provide rich, granular insights into consumers' needs and perceptions that can shape strategies and focus areas when designing products and solutions for clients. 'Over time, SpendTrend insights have become remarkably valuable in identifying how best to offer more relevant, personalised banking that puts our clients in control and provides real rewards that promote financial wellbeing,' says Kallner. 'It's also reinforced our view that digital banking security is going to be a key consumer focus point in future.' Our research, in collaboration with Discovery Bank, shows that people across all income levels are making spending decisions with careful planning and strategic use of financial tools Lineshree Moodley, country head for Visa SA 'South African consumers are undoubtedly feeling the impact of rising living costs, which is driving a significant change in spending habits,' says Lineshree Moodley, country head for Visa SA. 'Our research, in collaboration with Discovery Bank, shows that people across all income levels are making spending decisions with careful planning and strategic use of financial tools. The rapid growth of accessible and affordable online and digital payment methods is particularly noteworthy, and alongside these advancements, there are numerous tools and strategies available to help them navigate these challenges. 'Despite the pressures they face, we hope that the insights from SpendTrend25 will foster meaningful discussions and inspire targeted actions, empowering consumers to not only manage, but thrive in this dynamic economic landscape.' 10 key findings of SpendTrend25 1. Consumer card spend has slowed, despite lower inflation. The prime rate cut in September 2024 offered some relief, but recovery has been slow and led many to rely on value-based spending. In 2024, average spend growth was flat even as inflation fell from 6% to 4.4%. Consumer card spend growth trailed inflation by five percentage points, suggesting that factors beyond prices — like income constraints and rising expenses — affected spending habits. Cities like Bloemfontein, East London and Gqeberha had faster growth in spending, while cities like Johannesburg, Cape Town, Durban and Pretoria experienced more muted growth in spend. 2. Consumers are using their long-term savings for short-term expenses. While credit cards are more pervasive as a result of convenience, rewards and functionality, overall spending on active cards remained steady. South Africans are however looking for alternatives to relieve their financial pressures beyond short-term credit. One way is through the two-pot retirement system. Research among Discovery Corporate and Employee fund members found that they are using their retirement savings for expenses such as home or car costs, paying-off short-term debt, school fees and daily expenses. Among Discovery Bank clients, two-pot withdrawal rates were inversely correlated with Vitality Money status with higher withdrawal rates for high-income earners with a low Vitality Money status than lower-income earners with a higher Vitality Money status, highlighting the importance of smart financial habits and sound financial planning. 3. Groceries, retail, travel, eating out and fuel account for over 70% of total consumer spending. Groceries take the top spot for most, while high-net-worth individuals dedicate a larger share of their spend to retail and travel. Johannesburg residents spend a lower share on groceries and more on shopping and eating out or takeout compared to those in Durban and Cape Town. In comparison, people in Bloemfontein, East London and Gqeberha spend a greater share on food and fuel but less on travel, eating out and takeout. As more people return to the office, fuel spending has surged. After a 4% decline in 2023, average fuel spend per active card grew by 5% in 2024, marking a sharp 9 percentage point increase. 4. Busy lifestyles and the need for convenience increasingly influence consumer spending. Spending on eating out and takeout grew by 12% in 2024, outpacing growth in grocery spend (8%), with demand for convenience shaping consumer habits. Online grocery shopping in SA is still on the rise, with spend up 15%, while in-store grocery spend has grown by just 6%. A positive insight is that the shift towards online grocery shopping has not compromised consumers' health priorities. Discovery Vitality data shows that online grocery baskets contain a 30% share of healthy items and in-store grocery baskets a 27% share of healthy items. When it comes to prepared food, spend on dining out is growing faster at 13% than ordering takeout online at 10%. This indicates that grocery shopping is seen as a convenient task to do online, while eating out is a social experience. 5. Virtual cards are growing in popularity as South African consumers prioritise safety and convenience. Up to 45% of respondents in the consumer survey use virtual cards, driven by increased security, convenience and rewards. VisaNet data supports this trend, showing fraud incidents are six times lower with digital wallet transactions than with physical cards. Johannesburg residents use digital wallets for in-store purchases nearly twice as often as the national average, followed by Cape Town and Pretoria. Most major cities are ahead of the national curve in embracing these mobile payments. 6. South Africans are travelling less internationally but are purchasing more online from international platforms. Travel spend is returning to pre-Covid-19 levels, but at a higher cost per trip. Though overall growth in travel spend slowed in 2024 compared to previous years, the post-pandemic recovery continues. Discovery Bank clients travel far more with up to 24% more spend on travel. They saved over R700m on discounted flights, car hire and accommodation through Vitality Travel, both locally and internationally, with top international destinations being the UK, Mauritius, Australia, the US, and the UAE. While growth in travel spend slowed, spend on international platforms increased significantly, outstripping in-store spend at international destinations. 7. Omni-channel shopping experiences continue to grow both globally and locally. Internationally, consumers are embracing phygital (a blend of physical and digital) shopping experiences, such as ordering products online and picking them up in-store. This trend is also emerging in SA, with 21% of local consumers favouring phygital shopping experiences like browsing online and buying in-store. 8. The use of cash is declining and being replaced by real-time, digital payments. The consumer survey showed that 67% of South Africans use cash only a few times a month or never at all, with over 84% choosing cards or digital payments whenever they can. Online shopping continues to grow across South African cities, with transactions increasing by an average of 5% from 2019 to 2024. Bloemfontein and East London led with 10% and 11% growth, respectively. As digital payments continue to increase, affordability influences payment choices, with expectations for real-time, faster, cheaper payment systems that do not compromise convenience. The SpendTrend25 consumer survey showed that 86% of consumers believe payments should be as cost-effective as possible, while 84% believe it is essential that payments reach recipients quickly. 9. Online entertainment continues to surge. Spending on online entertainment is the fastest-growing category in SA, growing by 110% since 2023. Spending on online entertainment includes streaming services, sports betting, and event bookings. Discovery Bank clients spent more frequently and at higher values on event bookings than the broader market, with 20% growth in the average transaction value. This can be directly linked to their exclusive early access to concert and event tickets. Sports booking transactions, including padel, have also grown across the country. Among Discovery Bank clients the number of sports booking transactions grew by 64%, and by 41% in the rest of the market. Discovery Bank clients played over 93,000 padel games in 2024, 70% of them during the week. 10. Access to a wide range of subscription services is growing among South African consumers. While subscription services were once dominated by streaming, by 2024, they had expanded to include artificial intelligence, sports bookings, groceries and eCommerce. AI subscriptions saw the highest growth in share of spend — growing over three times from last year. Discovery Bank clients are leading this trend, using AI services more than the average South African, with an AI subscription adoption rate of 160% of the market. This rise in interest highlights how quickly AI is becoming part of everyday life.
