Ozow integrates cryptocurrency payments to enhance merchant solutions

In a groundbreaking move that signifies the shift towards digital finance, South African payment processing provider Ozow has officially introduced cryptocurrency as a primary payment method on its platform.

This innovation allows merchants to engage with the rapidly growing digital economy, enabling customers to use their crypto wallets to pay for goods and services seamlessly.

The integration, powered by MoneyBadger, South Africa’s Bitcoin-centric payments technology provider, facilitates direct payments from popular crypto wallets, including Bitcoin Lightning and major exchanges like Luno, VALR, and Binance.

Remarkably, the transactions are settled instantly in South African Rand, enhancing the efficiency of the payment process.

With the addition of cryptocurrency to its existing suite of services, including Pay by Bank, Card, Vouchers, Payouts and Refunds, and PayShap solutions, Ozow is positioning itself as a comprehensive platform for merchants.

This unified integration allows businesses to access every major payment method in South Africa, streamlining the payment process.

The momentum towards cryptocurrencies as a transactional currency is gaining speed in South Africa. Recent market data reveals that there are over 6 million registered crypto exchange users in the country, all eager for practical solutions to spend their digital assets.

A case study featuring Luno and Pick n Pay, which integrated with MoneyBadger in 2022, demonstrated a threefold increase in the use of crypto for everyday purchases when customers were presented with both value and a seamless experience.

“Our mission has always been to simplify the way South Africans pay and get paid, and the introduction of crypto is a natural extension of that commitment to financial enablement. It is also just the start of our journey into digital assets,” stated Rachel Cowan, interim CEO of Ozow.

Cowan emphasized the importance of bridging the gap between digital assets and their everyday utility, offering consumers increased choice in how they participate in the digital economy.

She noted that for merchants, this integration goes beyond merely adding a new payment method; it represents a frictionless gateway to a global, tech-driven market that ensures they remain competitive in the evolving financial landscape.

Importantly, the integration process offers high-value customer segments for merchants, while Ozow and MoneyBadger manage the complexities of transactions.

This ensures zero volatility risk by instantly converting cryptocurrencies into South African Rand. Merchants can enable crypto payments effortlessly, without needing extensive additional integration.

Furthermore, with generally lower processing costs than traditional credit card fees, businesses can protect higher profit margins while aligning their brand identity with global fintech trends.

According to Carel van Wyk, CEO of MoneyBadger, “Like Ozow, digital token payments present advantages to merchants such as reduced fraud rates and access to a growing market of tech-savvy consumers already utilising digital currencies like Bitcoin.”

He added that their collaboration with Ozow simplifies the offering of payment choices, allowing business owners to stay at the forefront of the evolving marketplace.

For consumers, making payments is as straightforward as scanning a QR code or selecting the crypto option at an online checkout. The transaction process is fortified by biometric authentication and TLS encryption, delivering a level of security that exceeds traditional payment methods.

“This integration signals a major step toward the mainstream adoption of digital assets in the retail and e-commerce sectors,” Cowan remarked, highlighting the transformative potential of this advancement.

BUSINESS REPORT