South African retail giant processes 1 million Rand in crypto transactions monthly

Pick n Pay, major South African retailer, is seeing increasing adoption of cryptocurrency payments, with monthly sales reaching R1 million ($57,000), according to a recent report.

The report by crypto investment platform Luno highlights a significant increase in cryptocurrency payments at Pick n Pay since the retailer began accepting them in February 2023. Monthly crypto transactions have increased by 3,900% from R25,000 at inception to over R1 million today. Bitcoin the preferred cryptocurrency among Pick n Pay customers, is also the most popular crypto investment on Luno’s platform.

Despite the growth in crypto adoption, it’s important to note that R1 million is a small amount compared to the traditional cash sales Pick n Pay’s Supermarkets division rakes in. The division of the South African retailer reported R7.6 billion ($435.4 million) in sales for the 2023 financial year.  

Luno also disclosed that it has processed over R3 million in transactions since the launch of Luno Pay in September 2023, with an average basket size of R370 ($21). This suggests a shift away from viewing crypto solely as an investment asset.

“If people have crypto, there’s a good chance they may want to spend it without having to exit the crypto ecosystem by selling their crypto and sending the money to a bank account,” said Carel van Wyk, founder and CEO of Money Badger, a company that connects merchants like Pick n Pay to exchanges to enable payments in crypto.

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This news comes on the heels of South Africa’s progressive regulatory approach towards crypto. The South African Financial Sector Conduct Authority (FSCA) recently approved 63 new crypto asset service providers (CASPs) in the second quarter of 2024, signalling a significant expansion of the industry.