Luno, a prominent cryptocurrency exchange, has significantly broadened its payment support within South Africa by enhancing its collaboration with merchants to facilitate crypto payments. In a strategic partnership with Zapper, Luno has made it possible for its users to make purchases using cryptocurrencies at over 31,000 merchant locations nationwide.
This is made feasible through the Luno Pay app, which is compatible with Zapper QR codes, allowing for seamless transactions at both physical points of sale and online. The service supports transactions up to a value of R100,000 (~$6,000), and through its integration with Zapper, Luno users can now make crypto payments at a variety of vendors, including FlySafair, fuel stations, and educational institutions.
Tarris Arnold, the Business Development Manager at Luno, highlighted the significance of this partnership, noting that Luno is the first crypto asset service provider in South Africa to join forces with Zapper. Arnold emphasized that this development is a major stride towards realizing the foundational vision of utilizing cryptocurrencies for everyday goods and services transactions.
Mike Bryer, the CEO of Zapper, expressed that this collaboration aligns with Zapper’s objective of assisting merchants in expanding their businesses. He pointed out that the partnership is set to broaden Zapper’s payment ecosystem, potentially adding over five million South African users.
In related developments, VALR, another cryptocurrency exchange, has enabled its users to conduct transactions using cryptocurrencies on Geewiz, an online shopping platform. Additionally, in April 2024, VALR announced its successful acquisition of regulatory approval (Category I and II) from the South African Financial Services Conduct Authority (FSCA). Luno also secured financial service provider approval, and Zignaly was granted Category II – Discretionary Financial Service Provider (FSP) approval.
This regulatory milestone came after the financial regulator confirmed the approval of 75 institutions as crypto asset service providers (CASPs), following its announcement in March 2024 of its intention to regulate the sector.
In a related vein, Visa, a global leader in digital payment services, has unveiled the Visa Tokenized Asset Platform (VTAP). This innovative product is designed to assist financial institutions in issuing and managing fiat-backed tokens on blockchain networks, marking a significant step towards integrating traditional fiat currencies with blockchain technology.
Currently in its testnet phase, Visa plans to initiate a live pilot with select customers in 2025, focusing on the public Ethereum blockchain. This move by Visa indicates a growing recognition of the potential for increased use cases for digital assets in the global financial landscape.
