South African QR code payment solution Scan to Pay, powered by Ukheshe, has partnered with Xion Global to introduce cryptocurrency payments on its platform. This move is the latest example of the institutional adoption of cryptocurrency in South Africa.
- With the Scan to Pay App, users only need to link their MetaMask wallet and scan the QR codes to complete transactions.
- Xion Global claims its security features, such as AML, KYC, KYB, and KYT, protect against unauthorized funds and malicious merchant activity.
- The partnership will roll out in phases, starting with gasless USDT (polygon) transactions and expanding to multi-chain payments.
- Phase 3 will introduce cash-back rewards, loyalty programs, and discounts at specific Scan to Pay merchants to encourage daily use of crypto payments.
Why it matters
- Tracy-Lee Schoeman, Vice President of Loyalty and Rewards at Ukheshe, said that cryptocurrency payments could transform transactions with lower fees and faster settlement times and increase financial sovereignty.
- According to a Triple-A cryptocurrency adoption report, 5.8 million South Africans own cryptocurrencies, translating to 9.44% of the country’s total population.
- Most South African cryptocurrency owners are in the 18-44 age group (83%). Only 7% of them are 55 and above, the report read.
- However, there is uncertainty in the level of cryptocurrency adoption by merchants and businesses. While there is growing interest and implementation, some companies may still be hesitant to accept cryptocurrency as a payment method.
- In a similar move last month, CryptoConvert’s CryptoQR platform became operational, allowing customers to pay for goods and services with cryptocurrency in South Africa.
- This accomplishment was made possible through a collaboration with VARL and Luno, enhancing the Bitcoin payment system at Pick n Pay’s tills across the country.