Pick n Pay is expanding the inclusion of cryptocurrency as a payment option to more stores upon the successful completion of the first phase.
The first phase allowed customers to make payments for goods with crypto from their smartphones.
The retail company, which is one of the leading grocery retailers in South Africa, announced this expansion on Tuesday.
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Pick N Pay Crypto Payments
This news comes weeks after the Financial Sector Conduct Authority officially declared crypto assets as a financial product in South Africa, allowing them to be regulated and enabling cryptocurrency to be a mainstream payment option.
According to Pick n Pay, “Increasingly, cryptocurrency is being used by those under-served by traditional banking systems or by those wanting to pay and exchange money in a cheaper and really convenient way.
“Many companies are responding to this by accepting Bitcoin.”
In its latest pilot, the grocery retailer tested a payment service technology that enables customers to buy groceries with cryptocurrency at till points with any Bitcoin Lightning-enabled app – such as BlueWallet or Muun.
To transact, customers scan a QR code from the app and accept the rand conversion rate on their smartphone at the time of the transaction. The service fee for each transaction is minimal, costing the customer an average of 70 cents and taking less than 30 seconds.
Ten stores in the Western Cape were the first to have a five-month trial period. The retailer has extended the pilot to a further 29 stores for testing with customers, with the intention to roll it out to all stores in the coming months.
According to Pick n Pay, this has been in the works for a while. In 2017, the group ran a pilot in the canteen store at its head office in Cape Town.
According to Pick n Pay’s Group Executive for information and technology, Chris Shortt, “This new technology means we can provide an affordable service for high volume, low-value transactions that will promote financial inclusion in South Africa.”
“We are constantly innovating and testing new technology so that we can add real value and choice for the customers we serve. This exciting pilot shows huge potential and is another way we can help and support our customers.”
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Stores Expected To Participate
Several stores are on the list of Pick n Pay’s crypto payment testing, including Langeberg Mall, Mosselbay, Paarl Mall, Sedgefield, Stellenbosch Central and Stellenbosch Square, Willowbridge, Local Big, Bay, Table Bay Mall, Cavendish, and Kenilworth, alongside many others.