Stitch Introduces “Pay With Crypto” Solution In South Africa
Through Stitch’s ‘Pay with crypto,’ South African businesses can provide customers with the option to deposit funds or complete transactions using cryptocurrencies.
By Anna B Kiwanuka
Stitch, a payments infrastructure company, has unveiled its latest offering: the ‘Pay with crypto’ solution, marking a significant stride in payment methods available in South Africa. This innovative method empowers businesses to cater to an expanding customer base seeking to make purchases using cryptocurrencies while receiving settlements in South African Rand (ZAR).
South Africa has seen a steady surge in cryptocurrency adoption. Reports from Binance indicate that approximately 7.7 million South Africans now own cryptocurrencies, often acquired through popular platforms like Binance and VALR.
Globally, there’s a growing interest in using cryptocurrencies for transactions, with enthusiasts of this mode of payment tending to spend more than their counterparts. According to BitPay, up to 40% of customers utilizing Bitcoin for transactions are new, and they typically spend twice as much online as credit card users. Presently, around 15,000 businesses worldwide accept cryptocurrencies as a form of payment.
Junaid Dadan, President of Stitch, commented, “Cryptocurrency adoption in South Africa ranks among the highest globally. There’s a substantial audience eager to utilize their crypto for payments. Our introduction of the ‘Pay with crypto’ feature allows Stitch clients to tap into and serve this audience without exposing themselves to direct volatility risks.”
Through Stitch’s ‘Pay with crypto,’ South African businesses can provide customers with the option to deposit funds or complete transactions using cryptocurrencies stored in their VALR or Binance wallets, or directly through Bitcoin or Ethereum. Subsequently, these businesses will receive settlements in ZAR, eliminating concerns related to managing currency fluctuations.
The process is straightforward:
– Customers opt for “Pay with crypto” during checkout, selecting their preferred wallet and cryptocurrency.
– After confirming their mobile number and verifying with an OTP, customers proceed to their wallet app via an on-screen QR code and complete the payment using the specified amount of their chosen cryptocurrency.
– Stitch converts the cryptocurrency to ZAR and settles the merchant in ZAR on the following business day.
Blake Player, Head of Growth at VALR, expressed enthusiasm, stating, “The integration with Stitch leveraging the VALR Pay API opens up avenues for VALR customers to use their crypto balances within South Africa’s e-commerce landscape. The interest we’ve witnessed in the VALR Pay product has been exceptional, and we anticipate substantial growth in crypto payments as acceptance widens.”
Businesses across various sectors that accept digital payments can adopt ‘Pay with crypto.’
– Online marketplaces and e-commerce businesses: expanding customer reach by diversifying payment methods.
– Gaming and trading platforms: providing users the flexibility to fund their accounts using preferred cryptocurrencies.
– Travel providers, local and international: appealing to a broader user base and facilitating payments for global experiences and accommodations, while reducing international transaction fees significantly.
Businesses already utilizing Stitch for other payment methods can seamlessly integrate ‘Pay with crypto’ into their existing systems. Presently, Stitch’s infrastructure supports prominent global and African businesses in diverse sectors, including MTN, Luno, Multichoice, The Foschini Group (TFG), Standard Bank’s SnapScan, Yoco, as well as global PSP partners and leading consumer internet companies worldwide.