According to a report by Bloomberg, South Africans are spending more than R2 million (approximately $112,000) each month using cryptocurrency via Luno Pay, a service offered by the crypto exchange Luno. This figure highlights the growing shift from crypto as a trading tool to a functional alternative for digital payments.
Luno Pay allows users to spend their crypto directly with merchants using QR codes, offering an experience similar to mainstream digital wallets like Apple Pay and Google Pay.
Luno says that South Africans are spending as little as R1 for items at Pick n Pay, a local supermarket chain. The exchange has also partnered with Zapper – a payment app in South Africa – which is offering a very similar experience to Lightning QR code scanning. It is also interesting to see the USDT-cash back incentivising South Africans to use this payment functionality by giving them back digital dollars.
While Luno does not disclose the number of merchants currently accepting payments through its system, here’s what we do know from their recent data:
R3 million ZAR (~USD 160 k) in total transactions have been processed through Luno Pay since its launch in September 2023 — with an average basket size of R370 and a max single transaction of R10,000
A social media poll by Luno found that ~40% of respondents said they had used crypto to make payments
Over 31,000 merchants in South Africa now accept crypto via Luno (through Zapper integration)
More than 60% of payment volume is coming from users who have been with Luno for at least three years, indicating established users are most likely to use it for payments
SOUTH AFRICA | Luno Wallet Users Can Now Pay for Goods and Services in Pick n Pay Stores Using Bitcoin for Free
Customers can purchase groceries and various value-added services, including airtime, electricity, bus tickets, and even pay municipal bills using Bitcoin at the… pic.twitter.com/o2byFlgbqV
— BitKE (@BitcoinKE) September 13, 2023
What This Tells Us:
While we don’t know how many users are using payments per se, the volume (R3M+) and merchant uptake (31K+ merchants) point to meaningful usage, especially among experienced Luno users.
The 40% poll response suggests that a substantial portion of engaged users are using crypto for real-world payments.
Summary
R3M+ in payments processed.
31,000+ merchants accepting crypto.
Among Luno users aware enough to respond, ~40% use it for payments.
Most of that is done by long-term users (3+ years).
MILESTONE: Luno Hits 10 Million Customers – One Million Added in 6 Months, 40% in South Africa https://t.co/ZeAa60Xmy7 @LunoGlobal
— BitKE (@BitcoinKE) April 15, 2022
If you’re after global figures or absolute user counts, Luno hasn’t made those publicly available yet. But in South Africa, crypto payments are clearly growing — both in merchant acceptance and user behavior.
South Africa has long stood out as one of the most crypto-forward countries on the continent. Data from Statista shows that roughly 11% of the population owns cryptocurrency, placing it among the top crypto adoption rates globally. The country’s favorable regulatory stance – including the classification of crypto as a financial product by the Financial Sector Conduct Authority (FSCA) – has also supported the industry’s development.
Marius Reitz, General Manager for Africa at Luno, told Bloomberg that people are using crypto for purchases ranging from flight tickets to groceries. He noted that Luno Pay gives users the ability to spend their crypto instantly, bridging the gap between traditional finance and blockchain-powered payments.
Luno itself is one of Africa’s longest-standing crypto platforms, with over 10 million users globally and a strong presence in South Africa, Nigeria, and other key African markets. The company was acquired in 2020 by Digital Currency Group (DCG), one of the world’s leading crypto investment firms. Despite facing industry headwinds and scaling back its international operations in early 2023, Luno has continued to push for product innovation, including integrating retail payments into its platform.
CRYPTO NEWS: South African Exchange, Luno, to Shed 35% of Jobs to Navigate ‘Crypto Winter’ – BitcoinKE https://t.co/bZQQtWRy0U
— Crypto Trader Pro (@CryptoTraderPro) January 29, 2023
As crypto gains more utility in everyday life, South Africa could serve as a model for how digital currencies can be blended into existing payment ecosystems — not just as a speculative asset, but as usable money.
48% of Crypto Holders in Kenya, Nigeria, South Africa Invest to Pay for Education, Reveals Latest Luno Report: https://t.co/DqI0FOKniq @LunoGlobal
— BitKE (@BitcoinKE) October 4, 2021
Stay tuned to BitKE for developments into the Kenyan crypto space.
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