In South Africa, cryptocurrency is no longer confined to speculative bets on future value. It’s increasingly being used for groceries, furniture — and yes, coffee. Since launching just seven months ago in November 2024, Luno Pay, the crypto payments feature developed by long-time digital asset platform Luno, has facilitated over R20 million ($1.1 million) in retail transactions. From supermarkets to airlines, crypto has begun showing up at checkout lines across the country — signaling a moment of traction in a space where others have faltered.

“We’re seeing purchases that range from as little as R1 to tens of thousands of rands — crypto is being used for everything from snacks to appliances,” said Christo de Wit, Luno’s South Africa Country Manager.

What once seemed like a utopian pitch — that cryptocurrencies could serve as everyday money — is edging closer to real-world use. On average, R2 million in crypto purchases are being made monthly via Luno Pay, and over 80% of users are transacting more than once a week.

Major retailers like Pick n Pay, Dis-Chem, Spur, Hirsch’s, Loot, and YuppieChef have onboarded the feature, thanks to integrations with local payment processors such as Zapper, Stitch, MoneyBadger, and FiveWest. Crypto is now being used to pay for fast food, furniture, airline tickets, and household goods — marking one of the most visible consumer-facing use cases for digital currencies in Africa to date.

This adoption stands in contrast to what has happened elsewhere on the continent. Nigerian crypto startup Lazerpay, which also tried to bring Web3 payments into mainstream commerce, shut down in 2023 after failing to raise follow-on funding. Lazerpay had enabled 3,000 merchants across Africa to accept crypto payments in various currencies — including Naira, Kenyan Shillings, and US Dollars — but struggled to commercialize its platform.

“Crypto is evolving from a speculative asset to a practical payment method,” de Wit said. “The consistent usage patterns we’re seeing indicate that crypto payments are moving beyond novelty and are being adopted as a real alternative in the payments ecosystem.”

Incentives Drive Engagement

Part of Luno Pay’s early success appears to be tied to consumer rewards. The platform recently introduced cashback incentives in USDT, a stablecoin pegged to the US dollar. Users can earn up to 10% cashback in USDT when using the token at Zapper-enabled merchants, and up to 5% when paying with other cryptocurrencies like Bitcoin or Ethereum.

These incentives appear to be working — not just to onboard users but to drive repeat behavior. With over four-fifths of its users transacting weekly, Luno Pay has begun to mimic the habitual utility of mobile money or tap-to-pay services. That’s a significant shift for a technology once used mostly by early adopters looking to hedge against inflation or speculate on price volatility.

South Africa’s relatively progressive regulatory stance may also be aiding adoption. Luno (Pty) Ltd is a licensed financial services provider in the country and has emphasized compliance through measures like ISO27001 security certification and monthly proof-of-reserves verification. Unlike other jurisdictions where crypto regulation remains in flux, South Africa has implemented a framework that allows licensed crypto platforms to operate with clearer rules of engagement.

At the same time, the platform acknowledges the inherent risks in the space. Luno continues to warn users that cryptocurrencies remain volatile and that none of its services should be construed as financial advice.

“This is not about replacing the rand,” one payments expert said anonymously. “It’s about giving consumers more flexible options in a digitized economy — and crypto is gradually proving it has a place at the table.”

A Long Way from Bitcoin Pizza

Founded in 2013 and headquartered in London, Luno operates in more than 40 countries and claims over 13 million users globally. In 2025, the company received top security ratings from Upguard and was highly ranked by both CCData and Analytico for its performance and risk management.

While crypto’s global image has taken a battering — with bankruptcies, hacks, and collapses of once-prominent players — Luno’s strategy has remained measured, regulated, and utility-driven. That, coupled with incentives and strategic partnerships with retailers, appears to be helping it scale in a market where crypto payment use has historically struggled to find real traction.

And while skeptics still question whether digital currencies will ever fully break into mainstream payments, the R20 million milestone in South Africa suggests something is changing. In contrast to Lazerpay’s shutdown, Luno Pay’s steady climb indicates that for crypto to gain ground as a true payment tool, infrastructure, regulation, and consumer incentives must align.

Time will tell whether this momentum leads to long-term behavior change. But for now, at least, crypto is no longer just a bet on tomorrow — it’s buying people’s lunch today.