Retail-based money transfer services, pioneered at scale in South Africa by Pick n Pay’s cash transfer system, let people send and receive money without needing a bank account, a genuinely useful tool for informal traders and small businesses dealing largely in cash.
How retail money transfer services work
Customers register with a valid South African ID at a participating store, after which they can send money from any till point to a recipient who collects it at their own chosen branch, using an SMS-based verification code rather than a bank card or account. The appeal for unbanked and underbanked customers is straightforward: instant access to funds without the account-opening requirements a traditional bank transfer demands.
Why this matters for small, cash-based businesses
Many small businesses, particularly informal traders and township-based operators, deal primarily in cash and serve customers who are themselves unbanked, making retail money transfer networks a practical bridge for receiving payments from customers or suppliers who can’t easily use EFT. Pick n Pay has continued expanding this kind of service since its original 2018 launch, more recently rolling out an updated, bank-facilitated domestic transfer service across its supermarket, clothing and Boxer store network.
What to check before relying on a retail transfer service
Transaction limits, per-transfer fees and which specific stores support the service all vary, so confirming current terms directly with the retailer before building a business process around it avoids surprises. For businesses handling larger transaction volumes, comparing the total cost of retail transfer fees against a basic business bank account may reveal that formal banking becomes more cost-effective past a certain volume.
Frequently asked questions
How does a retail money transfer service like Pick n Pay’s work?
Customers register with a valid ID at a store, then send money from any till point to a recipient who collects it using an SMS verification code.
Why are these services useful for small businesses?
They provide a practical way to receive payments from unbanked customers or suppliers who can’t easily use electronic bank transfers.
Has Pick n Pay’s money transfer service continued since its original launch?
Yes, it has continued expanding, including a more recent bank-facilitated version rolled out across its supermarket, clothing and Boxer stores.
What should businesses check before relying on retail money transfers?
Current transaction limits, fees, and which specific store locations actually support the service.
Is a retail transfer service always cheaper than a bank account for a business?
Not necessarily; businesses with higher transaction volumes should compare total costs, since a bank account may become more cost-effective at scale.
Originally published in April 2018. Updated September 2026.
Financial inclusion context via the South African Reserve Bank.
Further reading
Originally published in April 2018. Updated September 2026 to confirm Pick n Pay has continued expanding retail money transfer services since this 2018 milestone, including a newer bank-facilitated version across its store network.
