• Data top-up (76%), clothing (59%) and computer equipment (49%) top the virtual shopping list in Tanzania
  • Top learning experiences include learning a managing their banking needs online, managing their healthcare needs and getting their medicine online.
  • Social media has become an integral platform for connecting consumers to online businesses
  • Secure checkout experience recognized as fundamental for online shopping

Dar es Salaam, Tanzania; 02 February, 2021: A Mastercard study on consumer spending* has revealed that an overwhelming 72% of consumers surveyed in Tanzania are shopping more online since the onset of the COVID 19 pandemic.

Data top ups, apparel and computer equipment have seen the highest surge of online activity. Over 76% said they had paid for data top-ups online,  59% for clothing while 49% of respondents said they bought computers and other equipment.

And, with fewer opportunities to browse in the mall or on the high-street, social media has emerged as the main platform for finding the most attractive products and offers, with 52% and 83% of respondents saying they had discovered new sellers through Facebook and Instagram respectively. In fact, 74% of typical in-store bargain hunters said they spend hours searching different sites to find the best deals.

When it comes to paying for goods or services online, speed is a key factor for Tanzanian shoppers, with 76% quoting this a major consideration when choosing a business to buy from.

The Rise of Virtual Experiences

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

In fact, 76% of Tanzanian consumers said they were using the downtime as a positive learning experience. More than half of the respondents (58%) said they had taken a virtual cooking class, 46% have been mastering a new language and 45% have been learning to dance online.

36% of respondents have been educating themselves on Do-It-Yourself (DIY) projects, and 43% said they have been learning how to film online.

It is clear from the research that shoppers are rapidly moving away from more traditional forms of retail and opting for contact-free and digital transactions. This, in turn, is presenting e-tailers and businesses in Tanzania, and across the region, with new challenges on how to best leverage the shift towards online shopping and deliver fast, convenient and secure transactions.

“In this post-COVID world, we are seeing an undisputable transformation in the way everyday transactions are being conducted. As people increasingly lean on e-commerce for their shopping, businesses who will remain relevant must ensure their customers continue to enjoy a safe, convenient and secure experience when shopping with them. At Mastercard, we are leveraging our network, insights, technology and partnerships with fintechs, banks and other key players across Kenya to support businesses as they make thee most of this new reality and optimize to thrive”, said Kari Tukur, Vice President, Products, Sub Saharan Africa, Mastercard.

Securing New Shopping Habits

With the rapid rise in online shopping, consumers are also becoming increasingly aware of the associated risks. And, with 57% of consumers now managing their banking needs online, more than half (51%) have said that a secure checkout was fundamental for a good shopping experience.

This is a key priority for Mastercard, as it is working to reduce online fraud and protect retailers from data breaches, while ensuring that consumers still enjoy a convenient and hassle-free payment experience.

To advance these efforts, Mastercard recently rolled out its patented tokenization technology across the region. Tokenization encrypts consumer data by replacing card numbers with digital tokens. This prevents improper usage at any other location and provides additional security and peace of mind for consumers and merchants alike, resulting in higher approval rates while minimizing online fraud.

-Ends-

*Complete set of insights of study can be found here [link to be included]

Methodology of Survey:

  • 6x markets at 1,000 respondents each (South Africa, Nigeria, Kenya, UAE, KSA and Egypt)
  • 3x markets at 500 respondents each (Ghana, Cote D’Ivoire and Tanzania)
  • Online Survey

About Mastercard Incorporated (NYSE: MA), www.mastercard.com
Mastercard is a global technology company in the payments industry. Our mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, our innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. Our decency quotient, or DQ, drives our culture and everything we do inside and outside of our company. With connections across more than 210 countries and territories, we are building a sustainable world that unlocks priceless possibilities for all.

Mastercard Communications Contact
toju.egbebi@mastercard.com