Customers lead shift as retailers become South Africa’s preferred financial service providers

Everyday financial behaviour is changing across South Africa as traditional bank branches and ATMs continue to decline, and customers increasingly turn to retail stores to access financial services.

Pick n Pay has seen this shift accelerate dramatically over the past year, with customer use of in-store banking, value-added services and digital payment solutions reaching record levels. Cash deposits at tills have increased by 60% year-on-year, while overall cash transactions have declined by nearly 10%, reflecting the rapid rise in digital payments. Crypto payments have grown more than 44% year-on-year and now exceed R1.4 million per month in transaction value. Buy-now-pay-later options also saw unprecedented growth during the Black Friday period, particularly across Clothing and General Merchandise.

“Retail financial access must meet people where they are,” said Deven Moodley, Pick n Pay Executive Head: VAS, Financial Services and Mobile. “Our stores have become everyday financial touchpoints for millions of people. Whether someone is depositing cash, paying with crypto, using buy-now-pay-later, or transferring money, they are able to transact safely, affordably and conveniently while doing their groceries.”

Pick n Pay operates South Africa’s widest and most inclusive payment ecosystem, built on strategic partnerships with FSCA-regulated providers rather than pursuing its own banking licence. Key partnerships include FNB, enabling a growing range of in-store banking functions, RCS, powering the Pick n Pay Store Account, PayJustNow, providing buy-now-pay-later solutions for value-conscious shoppers, and MoneyBadger, facilitating till-integrated crypto transactions

Across more than 50 financial services, customers can deposit and withdraw cash, complete social grant transactions, use QR or tap-to-pay, send domestic remittances, top up digital wallets and soon transact through alternative payment rails such as PayShap.

Pick n Pay’s customer data shows strong momentum across several key segments including younger and value-conscious shoppers driving buy-now-pay-later growth, customers in areas with fewer bank branches using stores as their primary access point, grant recipients who value the safety and convenience of in-store withdrawals, and digital-forward customers using QR, tap-to-pay and crypto, with nearly a third of crypto usage coming from customers aged 45 and older.

All customer data is used responsibly to track trends and strengthen compliance with POPIA and FSCA requirements, while product development remains partner-led. Moodley said Pick n Pay’s roadmap includes future opportunities such as domestic money transfers, digital credit, wallet functionality, embedded finance and new payment rails.

“Our strategy is to bridge the gap between the banked and the unbanked. Retail infrastructure works to close that gap faster and more affordably when banks, fintechs and retailers work together.”

As financial behaviour becomes increasingly digital and omni-channel, retailers will play an even greater role in shaping access. “Pick n Pay is committed to ensuring every store is a safe, modernised and affordable financial access point for communities across South Africa, as we believe that financial access should not be a destination, but a part of everyday life. Our job is to make that possible for everyone that walks into our stores.”