South Africa has made a big step forward in using cryptocurrency. More than 600,000 businesses across the country now accept Bitcoin payments.
This development strengthens South Africa’s position as a leader in digital payments and financial innovation in Africa.
Bitcoin Lightning Network and Scan to Pay, a popular QR-based payment app, made it possible for millions of people to make quick and low-cost Bitcoin payments at shops, restaurants, fuel stations, and hotels across South Africa.
Lightning Network drives fast, low-cost Bitcoin transactions
The Lightning Network is a second-layer solution built on Bitcoin’s blockchain. It enables faster transactions to settle in just seconds and reduces costs to less than ten cents per payment. In comparison, traditional Bitcoin transactions can take up to ten minutes and cost between $2 and $5.
With Lightning Network, businesses can now accept Bitcoin payments for everyday purchases without worrying about long wait times or high fees.
This also supports South Africa’s mobile-first economy, where over 95 per cent of adults own mobile phones and prefer digital payment methods.
The Lightning Network supports over 35,000 active payment channels worldwide and handles millions of micropayments daily. Its total capacity is around 1,500 BTC, worth roughly $100 million.
With Scan to Pay’s broad reach, South Africa now stands out as one of the countries implementing this technology on a large scale in the real world.
Wake-up call for Nigeria, Kenya, and Ghana
Bitcoin is changing how businesses handle payments, especially in Africa. For merchants, the benefits are clear. Using Bitcoin cuts out banks and intermediaries, reducing transaction costs by as much as 98 per cent. This means shop owners can keep more profits while customers enjoy faster payments.
This could mean about 5 to 10 revenue growthper cent for small and medium-sized businesses, as more customers prefer to pay with Bitcoin.
South Africa has about 1.5 to 2 million small and medium businesses, and around 40 per cent now accept Bitcoin. The “Scan to Pay” feature has made it easier for people without bank accounts to take part in the digital economy, giving them access to financial opportunities they didn’t have before.
This progress should be a lesson for African countries like Nigeria, Kenya, and Ghana. As digital currencies continue to grow, they could soon become a regular part of daily financial life across Africa.