The top 10 places to spend your crypto in SA
With 5.8 million local users in 2024, South Africa features among the top 20 largest crypto markets worldwide. Traction in South Africa’s crypto usage can be seen in the recent success of retail giant Pick n Pay receiving more than R1 million a month in crypto payments for municipal bills, airtime and groceries.
A 2022 report by Deloitte found that 85% of surveyed merchants expect that digital currency payments will be ubiquitous among suppliers in their industry within the next five years.
Early adopters of cryptocurrencies continue to speculate that this new asset class promises to address the glitches in existing fiat currencies, such as the high costs and transaction delays.
From Vespa scooters to cosmetic surgery, high-end art and Cape wine tours, South African consumers are unlocking new ways to spend their crypto.
At the forefront of this financial transition, fintech specialist FiveWest has combined proprietary software to launch CoinPay, a crypto-to-fiat payment gateway that allows customers to make purchases using cryptocurrencies while retailers continue to be settled in rands.
Designed for simplified integration, CoinPay’s transaction fees fall well below those incurred through traditional credit card transactions.
Local entrepreneur Chris Howard – owner of renowned Cape Town-based Story, which specialises in the sale of rare sneakers, collectibles and apparel – says crypto sales have accounted for R300 000 since integration three months ago.
“We currently only accept crypto in-store, and we promote it by letting our customers know they can use any digital wallet of their choosing. I’m not a crypto enthusiast, but we did have a lot of customers who are, and they were asking if they could make purchases using crypto,” he says.
“Previously these customers would have to sell crypto via an exchange and convert that to fiat, which could take up to an hour. We were worried that fluctuation of crypto might give us valuations all over the place. FiveWest came in and were able to eliminate the fluctuation risk, ensuring that we would continue to get settled daily in rands.”
Pierre van Helden, director of business development at FiveWest, says: “Many of these payments are from foreigners visiting Cape Town from neighbouring African countries, where paying in crypto is far cheaper than using multiple corresponding banks to convert their local currency to USD and then from USD to rands.
“With more and more customers using their mobile devices to make payments, it makes a lot of sense to use a crypto asset wallet that makes payments cheaper and easier.”
Binance Pay, a feature on the Binance app, is the most used wallet for people in South Africa who are actively making payments with crypto.
Faced with a growing base of South African adopters, local merchants have begun to position themselves to meet the wave of customer demand for crypto payment options.
The top 10 places to spend your crypto
It’s important to note that paying with a crypto wallet takes no longer than a normal credit card purchase, says Van Helden.
Three ways to pay with CoinPay
CoinPay allows merchants to charge customers in one of three different ways:
“Those merchants interested in tapping into this growing market of crypto users should consider contacting FiveWest and looking into integrating CoinPay. FiveWest’s payment gateway allows customers to pay with crypto, while the merchant is settled in fiat, no different to traditional credit card or EFT transactions,” says Van Helden.
Brought to you by FiveWest, an established Financial Services Provider licensed with the Financial Sector Conduct Authority in South Africa, and specialising in trading automation, compliance, and robust Know Your Customer (KYC) and Anti-Money Laundering (AML) processes. FiveWest is technology-driven, leveraging proprietary software to ensure transparency and reporting for every transaction.
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