South African Retailer Processes 1M Rand in Crypto Monthly.
Pick n Pay, a prominent retailer in South Africa, is experiencing a notable rise in cryptocurrency payment adoption. Recent reports indicate that monthly sales have reached R1 million ($57,000). This surge reflects a growing interest in digital currencies among consumers.
According to a report from the crypto investment platform Luno, there has been a remarkable increase in cryptocurrency transactions at Pick n Pay since the retailer started accepting them in February 2023. Monthly crypto transactions have skyrocketed by 3,900%, jumping from R25,000 at the outset to over R1 million today.
Bitcoin has emerged as the favored cryptocurrency among Pick n Pay customers and is also the most popular investment option on Luno’s platform. This trend highlights a shift in consumer behavior towards embracing digital currencies for everyday purchases.
Despite this growth in cryptocurrency adoption, it’s essential to recognize that R1 million is relatively small compared to the cash sales generated by Pick n Pay’s Supermarkets division. For the 2023 financial year, this division reported impressive sales of R7.6 billion ($435.4 million).
In addition, Luno revealed that it has facilitated over R3 million in transactions since launching Luno Pay in September 2023. The average basket size during these transactions is R370 ($21), indicating a shift in perception regarding cryptocurrencies, moving beyond just investment assets.
Carel van Wyk, founder and CEO of Money Badger, noted that if people own cryptocurrency, they are likely to want to spend it directly. This eliminates the need to convert crypto into cash and transfer it to a bank account, fostering a more integrated crypto ecosystem.
This development aligns with South Africa’s forward-thinking regulatory stance on cryptocurrencies. The South African Financial Sector Conduct Authority (FSCA) has recently approved 63 new crypto asset service providers (CASPs) in the second quarter of 2024, signaling significant growth in the industry.
As the landscape for cryptocurrency payments evolves, retailers like Pick n Pay are at the forefront of this transformation, adapting to changing consumer preferences and regulatory advancements.
