South Africans are increasingly relying on retail stores for everyday financial services, shifting away from traditional bank branches and ATMs, according to Pick n Pay. This comes at a time when retailers have started challenging traditional banks, with the country’s majors Shoprite and Pepkor already making moves. Pick n Pay on Tuesday said customer demand for in-store banking, digital payments and value-added services has surged over the past year.
Cash deposits at tills jumped 60% year on year, even as overall cash transactions fell nearly 10%, reflecting the rapid adoption of digital payment methods. Crypto transactions at Pick n Pay now exceed R1.4m a month, up more than 44%, while buy-now-pay-later options saw unprecedented growth during Black Friday, especially in clothing and general merchandise. “Our stores have become everyday financial touchpoints for millions of people.
Whether depositing cash, paying with crypto, using buy-now-pay-later, or transferring money, customers can transact safely, affordably and conveniently while doing their groceries,” said Pick n Pay executive Deven Moodley. Pick n Pay operates an inclusive retail-based payment ecosystem through partnerships with providers regulated by the Financial Sector Conduct Authority rather than holding its own banking licence. Key partners include FNB for in-store banking, RCS for the Pick n Pay store account, PayJustNow for buy-now-pay-later solutions, and MoneyBadger for crypto payments.
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Data from the group shows that younger and value-conscious shoppers are driving buy-now-pay-later growth, customers in areas with fewer bank branches are relying on stores as their main access point, grant recipients value safe and convenient withdrawals, and digital-forward users are engaging in QR, tap-to-pay and crypto transactions. Nearly a third of crypto users are aged 45 or older, Pick n Pay said. “Our strategy is to bridge the gap between the banked and the unbanked.
Retail infrastructure works to close that gap faster and more affordably when banks, fintechs and retailers work together.” Fashion retailer Pepkor recently announced plans to leverage its 5,000-store footprint and more than 10-million digital clients to enter the banking sector. The group already processes millions of transactions monthly, including cash withdrawals, deposits, bill payments and personal loans, and has received regulatory approval to establish a banking presence. The announcement came shortly after Shoprite told Business Day that it plans a major shake-up in banking by launching a zero-cost bank account to leverage its massive customer base and data.
It aims to capture significant profits from financial services, potentially 30-50% of earnings, by offering accessible, low-cost banking to the unbanked and underbanked, disrupting traditional lenders. Business Day recently reported that the rise of Capitec, which disrupted the mass market banking sector with 25-million clients and a market value of R460bn, has emboldened new entrants like TymeBank, Discovery Bank, OM Bank and now Pepkor to target an increasingly multibanked society.
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