South Africa’s LovCash bets on blockchain to digitise cash-heavy trade sector

South Africa’s informal trade sector is getting a digital upgrade with LovCash’s latest move to blockchain-powered transactions. The digital payments platform has teamed up with Lisk, a German blockchain company that makes transactions faster, low cost and secure, to help small retailers, supermarkets, and informal traders move away from cash-based transactions to digital payments.

LovCash sees a massive opportunity in digitising South Africa’s informal economy, which employs about 20% of the country’s workforce yet remains largely cash-based, making it difficult for businesses to track sales, offer rewards, or extend credit. LovCash aims to change that by introducing a digital-first payment, rewards, and commerce system designed to enhance trade efficiency, security, and financial transparency.

“Many businesses in South Africa operate in fragmented, cash-dependent environments, with no access to supply chain rewards,” said Costas Constantinou, founder & CEO of LovCash. “With LovCash, we are replacing cash with a digital-first system that improves trade, benefits, security, transparency, and efficiency.”

South Africa’s informal economy has been hard to digitise. Most businesses operate with limited digital infrastructure and prefer cash, which complicates everything from credit scoring to supplier incentives. The result is a supply chain that is hard to track and easy to abuse.

The risks are costly. Cash-related fraud and theft cost South African businesses an estimated R3.3 billion (over $183 million) a year. By building its platform on Lisk’s blockchain, LovCash hopes it can help cut these losses by creating tamper-proof, traceable transactions that don’t require a traditional bank account.

Unlike in traditional banking, which charges high transaction fees on small payments, blockchain-based systems allow payments to move without intermediaries, a potentially game-changing proposition in markets where margins are razor-thin and trust is low.

Lisk’s COO Dominic Schwenter said the partnership goes beyond payment rails. “By addressing real-world supply chain challenges, they deliver tangible value, streamlining operations for commercial partners, empowering informal market players with digital access, and offering end users secure, rewarding transactions,” he said.

LovCash is also building a digital rewards system to keep traders engaged. Retailers can earn instant cashback, get access to exclusive deals, and participate in loyalty programmes, all through the LovCash platform.

Since launching in 2018, LovCash says it has onboarded over 3,700 retailers and signed distribution partnerships with nine of South Africa’s largest wholesalers. The platform has grown by 275% in the past five months, according to company figures.

Lisk has also committed to investing directly in LovCash, offering both funding and technical support. While the exact sum has not been disclosed, the two companies say the collaboration will help scale the platform and attract other investors.

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