Retailers of jewellery, music and DVDs experienced the highest increase in sales - over 300%. However, the figures also illustrate that most people opted to stay at home rather than go away for the holidays, as sales of airline tickets on FNB credit cards dropped by 50%.
Barrett Whiteford, Head of Credit Card Marketing at FNB, asserts that this increase in spend is a good indicator of the improved perception of the financial health of South Africans, primarily due to the sustained lower interest rate environment.
"We believe that the increase in transaction volumes confirms that customers are realising the obvious benefits of moving from cash to card. This includes factors such as the safety of using a card, which eliminates the need to carry large sums of cash that can be lost or stolen," says Whiteford.
Additional benefits include no transactional fees and being rewarded for credit card expenditure through FNB's loyalty programme, eBucks. Customers earned over R8 million worth of eBucks from credit card purchases in December alone.
However, consumers need to be conscious about the debt acquired during the festive season and ensure that they can easily afford their repayments so that they avoid the debt trap. "By staying financially fit and in control of their finances, South Africans can contribute positively toward the South African economy," concludes Whiteford.
