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Monday, 08 April 2024 14:37

Pick n Pay introduces domestic money transfer service.

By Lehlohonolo Lehana.

The retailer Pick n Pay has introduced a groundbreaking initiative in affordability and accessibility with the debut of its store-to-store Domestic Money Transfer service.

Priced at just R8.00 per transaction, the retailer says it stands as the most economical option available to customers within retail establishments.

The minimum allowed to be sent is R50, with a maximum of R3,000 per transaction and a monthly limit of R25,000.

"This service will be interoperable across all Pick n Pay supermarkets, Clothing stores, and Boxer stores in South Africa, spanning a network of over 1,400 outlets, "it said,

The service has a single registration process, where a customer signs up with their valid ID document at any store.

After each transaction, senders receive a PIN via SMS to share with the receiver, who can immediately access the funds at any affiliated store, be it Pick n Pay, Clothing, or Boxer.

The flat transaction fee of R8.00 applies to senders, regardless of the amount transferred.

The service will be facilitated by Absa.

"Due to the strong demand for money transfer services among South Africans, the landscape is fiercely competitive and rapidly evolving, encompassing offerings from banks, retailers, Mobile Network Operators (MNOs), and emerging platforms like PayShap," Pick n Pay said.

The retail group said that the service will assist South Africans with a host of money needs, from remittances to bill payments and emergency funds access.

Domestic Money Transfer by Pick n Pay has launched at a time when the South African banking and financial landscape is extremely competitive.

Digital banks have entered the market to disrupt South Africa's many "traditional" banks, sparking increased efforts to capture significant market share among the banked population.

Despite these efforts, a significant portion of South Africa's population remains underbanked and underserved.

In fact, according to the PayFast State of Pay Report 2023, the number of underbanked individuals in South Africa is "at least 19 million".

Furthermore, over a million micro, small, and medium-sized enterprises make cash-only transactions.

These underbanked individuals and organisations need other transaction methods, and Pick n Pay is targeting them with its new service.

Pick n Pay will compete with a wide range of banks, retailers, MNOs, and startups to capture this significant market.

It says its reputation as a trustworthy South African brand, as well as offering the lowest transaction fee among all retailers, will make its new money transfer service extremely popular in South Africa.