The payments infrastructure business Stitch has introduced a new cryptocurrency payment option in South Africa.
The use of cryptocurrencies is still expanding in South Africa. According to a Binance survey, 7.7 million South Africans hold cryptocurrencies, which they often bought on well-known exchanges like VALR and Binance. Customers may now make direct cryptocurrency purchases of goods and services thanks to the new Stitch payment solution. After that, companies can settle their payments in ZAR.
South Africa has one of the greatest rates of cryptocurrency use worldwide, according to Stitch President Junaid Dadan. A sizable portion of the public would rather make payments with their cryptocurrency. Thanks to our Pay with bitcoin solution, we’re happy to provide Stitch clients with the chance to connect with and cater to this audience without having to assume direct volatility risk.
Interest in using cryptocurrencies to pay for products and services is growing on a global scale. But compared to their peers, individuals who choose for this approach are spending more. A BitPay survey claims that up to 40% of consumers who use Bitcoin to pay for goods and services are first-time users, and that they spend twice as much online as consumers who use credit cards. It is believed that over 15,000 businesses globally currently accept cryptocurrencies.
Businesses in South Africa can give their clients the choice to send Bitcoin or Ethereum directly, or to make a deposit or check out using cryptocurrency saved in their Binance or VALR wallets, by integrating Stitch Pay with cryptocurrency. After that, the company will be settled in ZAR, so they won’t have to worry about handling exchange rate changes.
Expanding upon VALR in South Africa
“We are thrilled that another partner is building on top of the VALR Pay API,” stated Blake Player, head of growth at VALR. The Stitch integration increases the e-commerce sector spending choices available to VALR consumers in South Africa for their cryptocurrency holdings. We’ve got incredible interest in collaborating with the VALR Pay product. We anticipate a sharp increase in the amount of cryptocurrency payments as they gain greater traction.
In February 2021, Stitch came out of stealth and has already raised $52 million in investment. Global and African firms in a variety of sectors, including as MTN, Luno, Multichoice, The Foschini Group (TFG), Standard Bank’s SnapScan, and Yoco, are powered by stitch infrastructure. worldwide PSP partners and worldwide consumer internet corporations are also included in this.
These companies can now provide their customers with a cryptocurrency payment option. The customer will select their favorite wallet and cryptocurrency when they opt to “Pay with crypto” at checkout. After that, customers have to provide their mobile number and use a one-time password to confirm the transaction.
The customer then uses the on-screen QR code to access the wallet app and proceeds to finish payment using the specified amount of cryptocurrency. Finally, the next business day, Stitch settles the merchant in ZAR after converting the cryptocurrency to ZAR.
In what contexts is it applicable?
“Pay with crypto” is a feature that almost any company that takes digital payments can provide. Typical usage cases include of:
- By providing more payment options, online marketplaces and e-commerce companies can increase the number of customers they serve.
- Platforms for trading and gaming: Give consumers the option to add funds to their accounts with the cryptocurrency of their choice.
- Both domestic and foreign travel agencies can reach a larger audience and make it easier for customers to pay for travel-related experiences and lodging packages. They also considerably reduce their costs associated with foreign transactions.
