Online payment gateway sees 226% rise in new food industry business registrations

21st May 2020

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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Online payment gateway PayFast has registered more than 7 000 new merchant accounts over the lockdown period, so far, and the company reports a 226% year-on-year increase in new business account registrations in the food industry since Covid-19 restrictions were put in place in March.

The surge shows how retailers are gearing their businesses towards an e-commerce future as lockdown regulations and physical distancing practices push consumers to shop online.

To continue trading during the lockdown, many businesses have pivoted their product offering to provide essential goods, resulting in a significant spike in this sector, says PayFast MD Jonathan Smit.

“Our payment data supports this spike, showing that grocery stores, supermarkets and bakeries are among the retailers that have benefited the most during the first two weeks of the lockdown with a 357% increase in sales."

The lockdown has spurred further growth in the online purchasing and home delivery of pet-care products and essential goods for babies, with PayFast reporting between a three-fold and six-fold increase in the number of accounts registered in each industry compared with 2019, says Smit.

"Overall, PayFast has seen an 83% year-on-year increase in new business account registrations since the lockdown began. These figures provide insight into how local businesses are evolving and leveraging the e-commerce space, to ensure they aren’t put out of business by the economic impact of Covid-19,” he points out.

The increase is a combination of brick and mortar stores selling essential goods online and e-commerce businesses that are still processing purchases and payments for delivery after the lockdown ends. The online arms of businesses are keeping revenue streams flowing during this period, says Smit.

He adds that South Africans are also giving back to their communities and supporting those in need, with PayFast reporting a 47% increase in cause account registrations since the announcement of the lockdown on March 15. Additionally, its payment data shows a 136% increase in fundraising for charitable and social services, says Smit.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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