Crypto Adoption On The Rise In South Africa
It wasn’t that long ago that Pick n Pay, one of the largest retailers in South Africa began testing Bitcoin payments via the Lightning Network. This took place in a handful of selected stores across the country. A successful trial run led to the incorporation of Bitcoin payments in all 1,500 stores. Essentially, this decision enabled South Africans to purchase groceries and other everyday items with Bitcoin, providing further utility outside of an investment, or store of value.
Six months down the line Momint introduces Crypto payments for approximately 10K retailers, including leading brands such as Woolworths, Dischem, and Mr D Foods. The four major cellular companies are also on the list. This really changes the game for South African consumers, enabling a Crypto-powered life. There are actually numerous ways South Africans can spend their Crypto. However, it’s a lot more significant when the retailer is actually accepting Crypto, as opposed to consumers using creative ways in order to utilize their Crypto as purchasing power.
Shoppers can make use of a QR code system to process payments, or they can purchase a 1Voucher, which can then be spent at more than 10K small businesses, including spaza shops. First World readers might not be familiar with this term. However, I am sure that South African and Nigerian readers will know exactly what I am talking about. South Africans tend to acquire their Crypto assets via exchanges such as Luno and AltCoinTrader.
Interestingly enough, there were zero casualties amongst these exchanges, even though they had exposure to Genesis and other Crypto companies that blew up last year. Although Momint is not an exchange, it is important to note that these entities are governed by what appears to be adequate regulatory oversight. Another important aspect to take note of is that there were no banking casualties in South Africa during the 2008 collapse.
Sometimes being too “restrictive” can be a blessing in disguise. Either way, it’s good to see Crypto-based startups, as well as larger Crypto entities being able to operate and function within the borders of South Africa. My guess is that Crypto payments will pick up significantly in 2024 and 2025. When valuations are soaring, it becomes a lot easier to spend your Crypto. It’s another way of locking in your gains.
Spending Crypto once it has increased in value is just an alternative method of securing your profit. That being said, I wouldn’t expect much transactional volume for the remainder of the year. However, I am sure there will be many Crypto holders looking to test this new service in the coming months.
Final Thoughts
The initial stages of adoption are always the most difficult. However, it’s beginning to look as if the dam wall is about to break. When you are able to walk into mainline stores and spend Crypto, things are clearly heading in the right direction. As I mentioned earlier, we will have to wait a year or two, if we are to gain an accurate assessment in regard to the level of true adoption. It’s unlikely that Crypto holders will begin spending large amounts of Crypto at this stage of the game.
Setting up your own mini-payments network is a great idea, especially if you are already actively involved with Crypto. It’s a comforting backup to have, even if you choose not to utilize Crypto as your primary method of payment. Just having it as an option to fall back on makes a lot of sense, especially in these chaotic times. Anyway, it’s always encouraging to have some good news. Keep stacking, and see you in the next one!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
