Pick n Pay’s innovative in-store cryptocurrency payment system has achieved a significant milestone, reaching R1 million in monthly transactions. This system, which allows customers to pay using bitcoin, has seen a steady rise in usage for groceries, data, airtime, and municipal bills, reflecting a growing acceptance of digital currency among South African consumers.
As the only major retailer in South Africa accepting cryptocurrency, Pick n Pay is tapping into a burgeoning market of tech-savvy shoppers ready to embrace the future of finance. The company, which recently reported its first annual loss in its 57-year history, views this move as a strategic effort to innovate and attract a new segment of customers.
Deven Moodley, Pick n Pay’s head of value-added services, financial services, and mobile division, has overseen the remarkable growth of crypto transactions. “For years, crypto was something only computer boffins knew about, but Pick n Pay has paved the way for our shoppers to be early adopters in using their digital currency as a method of everyday payment,” Moodley said. He noted that monthly transactions have surged from R25,000 to the current R1 million, with a notable concentration in the Western Cape, Gauteng, and KwaZulu-Natal.
Half of all crypto transactions at Pick n Pay are R500 and under, with a maximum transaction limit set at R10,000. This cap ensures a manageable volume of transactions while encouraging wider adoption among everyday shoppers. “Crypto payments, which continue to grow month on month, fit into our Ways2Pay strategy of giving more customers mechanisms to pay in our stores,” Moodley explained. He emphasized that this initiative aligns with Pick n Pay’s goal of driving financial inclusion and reducing reliance on cash.
The Covid-19 pandemic has accelerated the demand for contactless and cashless payment options. Digital tokens and cryptocurrencies like bitcoin have gained significant popularity during this period, prompting Pick n Pay to integrate these payment methods. The decision to allow crypto payments followed the Financial Sector Conduct Authority’s October 2022 declaration, recognizing designated crypto assets as financial products.
Carel van Wyk, founder of Money Badger, has been instrumental in facilitating Pick n Pay’s integration with crypto platforms. “There has been a shift away from the use of crypto as a purely speculative asset towards what it was originally intended for — to be engaged with as a digital currency, increasing spending, which has led to an increase in merchant demand,” van Wyk said.
South Africa’s adoption of cryptocurrency is in line with global trends, with nearly 10% of the population owning crypto assets, according to a 2023 report by the Financial Sector Conduct Authority. This growing interest in digital currencies is reflected in Pick n Pay’s performance, where its shares saw a 2.7% increase in intraday trading on Wednesday before closing slightly lower at R24.61, down 0.61%.
As Pick n Pay continues to innovate and expand its payment options, the integration of cryptocurrency represents a significant step towards a more inclusive and technologically advanced retail environment. The company’s commitment to financial inclusion and adaptation to new market trends underscores its role as a pioneer in the South African retail sector.
