A year has passed since Pick n Pay introduced cryptocurrency as a payment option, and the retailer is now reporting monthly sales of R1 million from customers who are purchasing groceries, data, airtime, and settling their municipal bills using this digital currency.
Pick n Pay has observed a significant uptick in the number of customers utilizing cryptocurrency QR codes for transactions, with usage quadrupling each month across its nearly 700 stores. The Western Cape leads in adoption, with Gauteng and KwaZulu-Natal following closely. Notably, half of these transactions are for amounts of R500 or less, although customers can spend up to a cap of R10,000 per transaction.
Deven Moodley, who heads the value-added services, financial services, and mobile division at Pick n Pay, remarked on the growth trajectory since the inception of crypto payments. “We started from a low base of around R25,000 per month, and it has grown exponentially every month over the past year,” he stated.
A survey by Deloitte underscores the increasing adoption of cryptocurrencies, noting that since Bitcoin’s introduction in 2008, over 220 million people have started using cryptocurrencies. The survey highlights that consumers are not only purchasing a wide array of goods and services with Bitcoin but also that businesses are increasingly accommodating this trend by offering digital currency as a viable payment option.
Pick n Pay initially tested the waters with a pilot program that enabled customers to make payments using cryptocurrencies through a smartphone app. Following the successful pilot, the retailer rolled out digital currency payments across its stores last February.
The company also points out that this payment method has been embraced by its subsidiary stores, including PnP Express and Pick n Pay Clothing, indicating a broader acceptance of cryptocurrency within its business operations.
To make purchases with cryptocurrency at Pick n Pay, customers require a Bitcoin Lightning or Binance wallet, along with the CryptoQR app developed by Money Badger. Alternatively, they can directly scan the QR code using their VALR or Luno apps. The retailer accepts any cryptocurrency that is supported by Luno, VALR, or Binance.
Deven Moodley elaborates on the payment process: “Customers simply inform the cashier that they wish to pay using a QR code. They then scan their phone at the card machine and approve the exchange rate to South African rand provided at the time of the transaction.” He further comments on the changing landscape of cryptocurrency, noting that what was once a niche interest for tech enthusiasts has now become more mainstream, with Pick n Pay leading the charge in enabling its customers to use digital currency for everyday transactions.
Carel van Wyk, the founder of Money Badger, reflects on the progress since the comprehensive rollout of cryptocurrency payments in February 2023. He acknowledges the extensive negotiations and technical efforts required to integrate Pick n Pay’s QR code into the apps of local cryptocurrency companies, an endeavor that has resulted in substantial transaction volumes.
Van Wyk also shares insights from the Adopting Bitcoin 2024 event in Cape Town, where attendees were impressed by South Africa’s embrace of cryptocurrencies. He notes a significant shift in the perception of cryptocurrencies—from being seen primarily as speculative investments to being used for their original purpose as digital currencies. This shift has led to increased consumer spending with cryptocurrencies and a corresponding rise in demand from merchants.
Moodley concludes by emphasizing the growth of cryptocurrency payments and their alignment with Pick n Pay’s Ways2Pay strategy, which aims to offer customers a variety of payment options. He views the adoption of cryptocurrency payments as a step towards a cashless economy and financial inclusion, both of which are key objectives for the company.
