63% of Consumers Spend More Money on Virtual Experiences as Data Top Ups Hit 70% in Africa – Mastercard Study

As the global COVID-19 pandemic continues to spur e-commerce, a Mastercard study has revealed significant insights into how consumers are rapidly moving away from cash and opting for contact-free and digital payment experiences.

Since the onset of the pandemic, the study has shown that about 63% of Consumers in Africa have spent more money on virtual experiences.

According to the survey, data top ups, apparel, groceries, banking and healthcare have seen the highest surge of online activity.

More than 70% of consumers in the Middle East and Africa said they had shopped more online for data top ups, 63% for clothing, and over 52% said they had purchased groceries online.

And, as e-commerce increasingly becomes a part of everyday life, consumers are moving other aspects of their financial management to digital, with 66% of respondents having started banking online, and 56% managing their healthcare needs online.

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The research also reveals the rising impact of social media on consumer spending habits, with 70% and 59% of respondents saying they had discovered new sellers through Facebook and Instagram respectively.

While adapting to the ‘next normal’, people have been changing the way they consume entertainment and learn new skills.

In fact, 76% of consumers said they were using the downtime as a positive learning experience. More than half of the respondents (55%) said they had taken a virtual cooking class, 41% have been mastering a new language and 32% have been learning to dance online.

45% of respondents have been educating themselves on Do-It-Yourself (DIY) projects, and 44% said they are enrolling in an online university.

As people spend more time at home, the demand for online entertainment has also surged with 72% of respondents having invested in entertainment subscriptions and virtual stand-up comedy shows, while over five in ten people are spending on online gaming (55%) and virtual music concerts (54%).

Speaking on this, the Senior Vice President, Mastercard West Africa, Ebehijie Momoh said, “With the surge in online shopping in Nigeria, businesses need to optimize their operations to ensure they consistently deliver convenient, enjoyable and secure transaction experiences to their customers.

“At Mastercard, we are leveraging our network, insights, technology and partnerships with fintechs, banks and other key players across Nigeria to support businesses as they make the most of this new reality.”