JAMAICANS splurged a record of nearly $43 billion in November 2024, a 13.1 per cent increase over the same month last year, according to data from JETS Limited, operators of the MultiLink payment system, with the spending last month setting the stage for what is expected to be a record-setting Christmas shopping season.

The surge in spending was driven in part by Black Friday promotions, which were spread out over the entire month, offering consumers more opportunities to snag deals, Edmundo Jenez, CEO of JETS Limited, told the Jamaica Observer in an interview Wednesday.

“The behaviour has been more spread out because retailers pushed Black Friday for the entire month, so what we saw is people getting more opportunities for deals and it showed up in the data,” Jenez explained.

He said the total value of transactions for the week of Black Friday — that’s the period from November 25 to December 1 this year — was $10.778 billion, a slight increase over the $10.673 billion recorded for the same period last year. While the single-day peak for Black Friday itself, which fell on November 29 this year at $2.453 billion, was lower than the previous year’s $2.556 billion, the overall spending for the month was significantly higher.

“For the full month of November this year, our network processed $42.665 billion in transactions. In 2023 November it was $37.823 billion,” Jenez pointed out.

Breaking down the transactions, 53 per cent were done at automated banking machines (ABMs), while point-of-sale (POS) machines processed the remaining 47 per cent. In comparison, ABMs accounted for 51 per cent of transactions in November 2023.

Jenez noted that while POS machines process a higher volume of transactions, they tend to be smaller in value compared to ABM transactions. However, the data suggest that the total value of POS transactions is gradually closing the gap with ABM transactions.

“At some point, it’s likely to flip, with more POS value transactions,” Jenez predicted. “It may take a while, but it’s been happening gradually over the years. POS transactions were once zero, and now they’re almost 50-50 with ABMs.”

He pointed out that the MultiLink network’s transaction data represent a subset of the overall transactional activity in Jamaica, accounting for approximately 25-30 per cent of all transactions. Furthermore, the network’s data exclude online transactions and cash-based transactions that are not initiated through ABM withdrawals, providing a partial snapshot of the country’s transactional landscape.

Last year’s Black Friday sales were unprecedented, with the $2.556 billion processed on the MultiLink network in that single day, surpassed only by December 22, 2023 — which was the Friday before Christmas Day — when $2.771 billion worth of transactions were processed between ABMs and POS machines.

For those unfamiliar, Black Friday, which is observed on the last Friday in November, is a major shopping event originating in the United States, typically taking place on the day after American Thanksgiving. It marks the beginning of the holiday shopping season, characterised by widespread discounts, promotions, and extended shopping hours. In recent years, Black Friday has gained popularity worldwide, including in Jamaica, where local retailers are increasingly embracing the event.

While Black Friday is the busiest shopping day of the year in the United States, in Jamaica, the busiest shopping day tends to be the Friday before Christmas. Given the data for Black Friday in Jamaica this year, Jenez is forecasting a strong Christmas shopping season, with potential single-day transactions reaching as high as $3 billion.

He noted that the optimism is captured in the forecasts done by JETS Limited to ensure enough capacity is provided to handle the increased transactions.

“We want to make sure that when you go to do your transactions, everything is working smoothly,” he said.

“So barring any kind of unforeseen event or any national emergency, usually Christmas is the peak season of the year. Last year the peak day was at $2.77 billion, we may potentially hit $3 billion this year, the Friday before Christmas.”

He pointed out further that the weekend before Christmas Day is usually the period when peak spending occurs in Jamaica, adding that it tends to coincide with payday, and so he is expecting December 20 this year to be the busiest for the network in terms of volume and value of transactions. The following Saturday is also expected to be a big spending day and Christmas Eve as well.

“So those are the three top days that we are likely to see strong spending this Christmas based on historic trends,” he said.

In December 2023 total spending through the MultiLink network was $44.029 billion and for the height of Christmas shopping, it was $14.377 billion — the week before Christmas starting from December 18.

“The question that remains now, is the pattern that we are seeing since October in particular where people are spreading their spending out over more days, is that going to continue into December? If it does, then you are going to get a peak week in December, certainly the week of the 16th — which is pay week — is going go be the peak week and that week may feature a lot of transactions reaching $2 billion per day.”

“That’s the fine detail that we are trying to examine, so of course, that puts a lot of demand especially on the ABM side, so the banks have to plan well in advanced so that the machines have enough cash throughout the entire period.”