Mr D Food, Netflix and Spotify the biggest winners of lockdown boom
FNB reveals upsurge in consumer spend on home delivery, video and music streaming subscriptions
A year since SA went into lockdown, FNB data is showing an upsurge in customers who are spending on home delivery, video and music streaming apps for convenient access to services. This has led to booming use of platforms such as Mr D Food, Netflix, Showmax, iTunes and Spotify.
FNB retail and private banking CEO Raj Makanjee says: “The pandemic has accelerated the use of digital platforms and home delivery services for a safer and convenient exchange of goods, services and payments. As a pioneer of digitised and unassisted financial services, we are in a position to support our customers by making it easier for them to pay for goods or services and manage their money via our trusted platform.
“While some banks charge international processing fees when customers use global streaming services such as Netflix or iTunes, our customers are not charged additional fees. We support our customers with free monthly data via FNB Connect, eBucks Rewards at retailers such as Mr D Food, as well as our selection of safer digital and card payments.”
FNB credit card CEO Chris Labuschagne says one of the most preferred payment methods for subscriptions and online purchases is their virtual card on the FNB and RMB Private Bank apps. Customers take comfort in the security of a changing CVV number on the virtual card as it limits the chances of fraud, without affecting the monthly or annual renewal of one’s subscription.
The need for innovative platform payment solutions is supported by more than 200,000 FNB virtual cards that have been activated since launch in January 2021, with total spend values approaching R200m, he says.
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 biggest increase in use, with a 140% increase since the start of lockdown. When comparing the number of customers who spent on Mr D Food in March 2021 vs March 2020, there was a 98% increase. There was no big change in the average amount each customer spent on takeout food before compared with after the start of lockdown.
Spend on large streaming platforms, Netflix, Showmax and Amazon Prime, increased since lockdown. The average number of customers who paid for subscriptions with Netflix increased by 64%, Showmax by 78% and Amazon Prime by 50%.
Overall, music-related subscriptions increased, with Apple iTunes up 18% a month on average. Spotify use increased the most, by 83%, and the move from Google Music to YouTube Music increased monthly subscriptions to YouTube by 188%.
“Individually, customers are not necessarily spending more on any of these categories, but adoption is growing across our base. There has been a shift in consumers’ appetites and choices, based on where people choose to spend their money. As part of our journey to support customers in their money management journey, our trusted platform capabilities are scaling quickly as we expect digital adoption to continue,” says Labuschagne.
For more information, visit the FNB website.
This article was paid for by FNB.