Pick n Pay has announced that it will now allow transactions via cryptocurrency following the completion of the first phase of a pilot that allows customers to pay for goods with crypto from their smartphone.
This feature is now being tested in multiple stores. The move follows the Financial Sector Conduct Authority’s (FSCA) decision to allow cryptocurrency as a mainstream method of payment.
“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,” said Pick n Pay. “Many companies are responding to this by accepting Bitcoin.”
In its latest pilot, the 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, on average, 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.
It proved the concept, but the available technology at the time was too expensive for shoppers, and it took too long to finalise the transaction to make it sustainable, said Pick n Pay.
“This new technology means we can provide an affordable service for high volume, low-value transactions that will promote financial inclusion in South Africa,” said Chris Shortt, the group executive for information and technology at the retailer.
“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.”
The following stores are expected to participate in the pilot:
- Langeberg Mall, Mosselbay
- Sedgefield
- Stellenbosch Central and Stellenbosch Square
- Paarl Mall
- Willowbridge
- Local Big Bay
- Table Bay Mall
- Cavendish
- Kenilworth
- Kenilworth Campus
- Kenilworth Pam Golding
- Seapoint
- Waterfront
- Mall of Africa
- Mall of the North
- Mall of the South
- Menlyn Mall
- Nelspruit
- PnP on Nicol
- Liberty Midlands Mall
- The Pavilion
- Tshwane Mall
- Beacon Bay
- Uitenhage
- Bedfordview
- Centurion
- Fourways Mall
- PnP Qualisave Carlton Centre
- PnP Qualisave Diepsloot
- PnP Qualisave Midrand
- PnP Qualisave Rustenburg
- PnP Qualisave Commercial Road
- PnP Qualisave North Beach
- PnP Qualisave The Workshop
- PnP Qualisave Goodwood
- Hyper Bloemfontein
- Hyper Durban North
- Hyper Northgate
- Hyper Ottery
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