In November you could read in the Bitcoin news that Pick ‘n Pay, one of the largest supermarket chains in South Africa, had started a test pilot with which it would accept bitcoin (BTC) as a payment method at a few locations. Of the total of 1,628 locations, it was possible to use bitcoin to pay at 39 of them.
It is now possible to pay with bitcoin for your daily shopping at all branches. CryptoConvert, the company behind the CryptoQR scanner app, announced this on Twitter.
Good news everyone! CryptoQR is now active at all Pick-n-Pay stores across South Africa, including PnP express and clothing shops! You can also buy Airtime and Electricity, Plane and Bus tickets, and pay your municipal bills with #Bitcoin at the till! pic.twitter.com/3hVhgIJdTb
— CryptoQR 🇿🇦⚡️ (@CryptoConverted) February 1, 2023
BTC in South Africa
To pay with BTC, customers need a Bitcoin Lightning Wallet and the CryptoQR scanner app from CryptoConvert, which is linked to the Bitcoin Lightning Wallet. The payment process requires users to scan an item’s QR code through the CryptoQR app, then proceed to the Lightning Wallet to confirm the rate and complete the transaction.
At the earlier launch of the pilot, it was noted that Pick ‘n Pay charges a small service fee for payments in BTC. This will cost the customer an average of 70 cents in the local currency, or about $0.04.
Twitter users shared their experience using bitcoin to pay for everyday items at Pick ‘n Pay stores.
Bitcoin Lightning Network
Pick ‘n Pay uses the Bitcoin Lightning Network, a layer-2 scaling solution which makes it possible to send transactions at lightning speed without filling up the blockchain. It’s a so-called off chain solution, which means that you will not see the transactions reflected on the Bitcoin blockchain.
When you send your BTC to a Lightning wallet, this is a normal transaction on the blockchain. Subsequently, however, you will connect to a node on the Lightning Network, which is also known as a payment channel. Through this channel you can send bitcoin to anyone within the Lightning Network, without it being included on the blockchain.
When you send your BTC from your Lightning wallet to your bitcoin wallet, it will be taxed again on the Bitcoin blockchain.