Pick n Pay has enabled in-store crypto currency payments to allow shoppers to buy groceries with digital tokens such as bitcoin at 39 of its supermarkets across the country.
The decision comes after the successful first phase of a new pilot project that tested the use of crypto payments at 10 Western Cape stores over the past five months. The first phase of the pilot saw Pick n Pay partner with preselected testers including bitcoin Ekasi in Mossel Bay, which uses bitcoin to pay the salaries of surfing coaches involved in non-profit organisation The Surfer Kids.
Bitcoin Ekasi also promotes the use of the digital currency by onboarding township vendors to accept it as a payment means to help establish a crypto economy in underserved communities. With the Mossel Bay Pick n Pay now accepting bitcoin the coaches and children involved in the organisation can spend their earnings more conveniently.
The success of its cryptocurrency payment pilot has prompted Pick n Pay to extended the project to an additional 29 stores across SA for testing. Chris Shortt, Pick n Pay group executive for information and technology, said the retailer’s ultimate aim was to roll out crypto payments across all of its stores.
“We always keep an eye on the major tech trends, and payments is obviously a very important one to stay abreast of to understand exactly what customers want in terms of accessibility, convenience and real world application,” said Shortt.
“Cryptocurrencies and blockchain [are some] of the latest developments on this front. It’s really about customer choice — we’re trying to make it simpler and easier for customers to decide how they want to pay.”
Pick n Pay's decision to allow crypto payments comes after the Financial Sector Conduct Authority (FSCA) in October declared designated crypto assets as financial products under the Financial Advisory and Intermediary Services (FAIS) Act. Pick n Pay says this paves the way for the use of the digital tokens as a means of payment, which, it argues, has particular advantages for communities that have traditionally been underserved by the financial services sector, given the new technology's digital application.
In its latest pilot project, Pick n Pay tested a payment service technology that allows customers to buy groceries with cryptocurrency at till points with any bitcoin Lightning-enabled app such as BlueWallet or Muun. The transaction is as easy and secure as swiping a debit or credit card. Customers scan a QR code from the app and accept the rand conversion rate on their smartphone at the time of the transaction before concluding the transaction for a service fee that on average costs about 70c.
“This new technology means we can provide an affordable service for high volume, low-value transactions that will promote financial inclusion in SA,” said Shortt. “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.”
Shortt says the data provided by Pick n Pay’s crypto payments pilot project shows that the majority of SA’s crypto enthusiasts reside in the large urban centres around Johannesburg, Cape Town and Durban.
Pick n Pay began piloting the use of crypto currencies as a means of payment as early as 2017 when it allowed the use of digital tokens in its canteen store at its Cape Town head office. However, at the time the available technology was too expensive for shoppers while transactions took too long to finalise.
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