Payments infrastructure company Stitch today announced the launch of a new payment method: Pay with crypto – the most comprehensive of its kind available in South Africa.
With this method, businesses can allow a growing set of customers who wish to buy goods and services using crypto to do so directly, and get settled in ZAR.
Cryptocurrency adoption continues to grow in South Africa. A study from Binance indicates that around 7.7 million South Africans own cryptocurrency today, often purchased using popular exchanges such as Binance and VALR.
Globally, interest in using crypto to pay for goods and services is on the rise, and those who choose this method are spending more than their peers.
According to a report from BitPay, up to 40% of customers who pay for goods and services with bitcoin are new customers – and they spend twice as much online as credit card users. The number of businesses worldwide that accept cryptocurrency today is estimated to be around 15,000.
Stitch President Junaid Dadan said: “Cryptocurrency adoption in South Africa has been one of the highest in the world.
There’s a massive audience that would prefer to use their crypto to make payments. “We’re excited to offer Stitch clients an opportunity to reach and serve this audience, without the need to take on direct volatility risk, thanks to our Pay with crypto method.”
With Stitch Pay with crypto, businesses in South Africa can offer customers the option to make a deposit or check out using crypto stored in their VALR or Binance wallets, or send Bitcoin or Ethereum directly.
The business will then get settled in ZAR, so they don’t need to worry about managing currency fluctuations.
Here’s how it works:
- Customer chooses “Pay with crypto” at checkout and selects their preferred wallet and cryptocurrency
- Customer confirms their mobile number and verifies with an OTP
- Customer opens their wallet app via on-screen QR code and follows the steps to complete payment with the appropriate amount of their chosen crypto
- Stitch converts the crypto to ZAR and settles the merchant in ZAR on the following business day
Blake Player, Head of Growth at VALR, said: “We’re excited to see yet another partner building on top of the VALR Pay API.
The Stitch integration expands the options VALR customers have to spend crypto balances in South Africa to the e-commerce market.
The interest we’ve had in working with the VALR Pay product has been amazing, and we’re expecting high growth in the volume of crypto payments as it becomes more widely accepted.”
Virtually any business that accepts digital payments can offer Pay with crypto. Example use cases include:
- Online marketplaces and e-commerce businesses: can broaden their customer reach by offering additional payment methods
- Gaming and trading platforms: Can offer users the flexibility to top up their accounts using their preferred cryptocurrencies
- Local and international travel providers: can appeal to a wider user base and enable users to settle payments for international experiences and accommodation packages, while saving significantly on international transaction fees
Businesses that already leverage Stitch for other payment methods can easily add Pay with crypto to their existing integration. Anyone interested can get in touch at sales[at]stitch.money.
Stitch emerged from stealth in February 2021 and has raised $52 million in total funding. Today, Stitch infrastructure powers leading global and African businesses across sectors, including MTN, Luno, Multichoice, The Foschini Group (TFG), Standard Bank’s SnapScan and Yoco, as well as global PSP partners and leading global consumer internet companies.
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