Retail Giant Pepkor Explores Banking Venture That Could Transform South Africa’s Low Cost Fintech Market

The initiative, informally referred to as Pep Bank, would leverage Pepkor’s vast national footprint of nearly 6,000 stores to offer zero-fee banking to millions of lower-income consumers.

According to reports, Pepkor is in early-stage discussions with Investec about a potential partnership that would support the bank’s regulatory, operational and financial infrastructure.

While no deal has been finalised, sources indicate that both parties are assessing a model in which profits could be shared, and in which Pepkor’s customer data and store network would form the foundation for widespread roll-out.

Retail meets banking

If launched, Pep Bank would position the retailer as a major player in South Africa’s fast-growing fintech and low-cost banking segment. By housing banking kiosks or service points inside existing outlets, Pepkor would be able to scale branches rapidly and reach customers who already rely on its discount stores for daily essentials.

The group’s existing fintech division—whose revenues have grown strongly in recent reporting periods—also provides a base for expanded credit, savings and digital-payment offerings.

Pepkor has confirmed it is evaluating the opportunity but emphasised that no formal partnership with any bank currently exists. Investec has declined to comment on the negotiations.

The proposed zero-fee banking model could intensify competition in a market increasingly defined by accessible, affordable digital services, placing Pepkor in direct rivalry with low-cost banks and established retail-banking players.