Upsurge spending on home delivery, video and music streaming apps, says FNB
THE number of consumers spending on home delivery, video, and music streaming apps for convenient access to services has increased, a year since the country went into lockdown. This is according to Financial services First National Bank (FNB).
FNB said its data revealed that the upsurge has led to booming usage of platforms like Mr D Food, Netflix, Showmax, iTunes, and Spotify.
FNB Retail and Private Banking chief executive Raj Makanjee said: “The pandemic has accelerated the use of digital platforms and home delivery services for a safer and convenient exchange of goods, services, and payments,” he said.
The sentiment was echoed by FNB card chief executive, Chris Labuschagne who said the bank's data shows that customers need platform payment solutions.
“More than 200 000 FNB Virtual Cards have been activated since launch in January this year with total spend values approaching R200 million,” he said.
According to FNB, some of the prominent trends from its data include the following:
While FNB data shows that the Uber app is still the most used delivery app, Mr D Food recorded the most increase in usage, with a 140% increase since the start of lockdown.
When the FNB compared the number of customers who spent on Mr D Food in the month of March 2021 versus March 2020, it saw a 98% increase. There was no major change in the average amount that each customer spent on take-out food before versus after the start of lockdown.
Spend on streaming platforms Netflix, Showmax, and Amazon Prime increased since lockdown. The average number of customers who paid for a subscription with Netflix increased 64%, Showmax increased 78%, and Amazon Prime increased by 50%.
Overall, music-related subscriptions increased with Apple iTunes up 18% per month on average. Usage of Spotify increased the most by 83%, and the move from Google Music to YouTube Music saw a 188% jump in monthly subscriptions to YouTube.
“Individually, customers are not necessarily spending more on any of these categories, however, adoption is certainly growing across our base. There is a significant shift in consumers’ appetites and choices, based on where people choose to spend their money,” Labuschagne said.
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