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Surge in crypto cash-outs at local ATMs

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 18 Jan 2024
The CryptoExpress app facilitates cash-outs from Bitcoin, Ethereum, USD Coin, Tether as well as BinancePay.
The CryptoExpress app facilitates cash-outs from Bitcoin, Ethereum, USD Coin, Tether as well as BinancePay.

More South Africans are converting their crypto-currencies into cash at ATMs across the country.

That’s according to global payment company, Paycorp, which recently partnered with Triple-A, a digital currency payment institution, to allow users of the Paycorp-powered CryptoExpress app, to use their digital currencies to make cash withdrawals at over 3 000 ATMs in South Africa.

According to the companies, South Africa is the first country where they launched the CryptoExpress app in October last year.

Since, going live they say they have seen an increase in the number of downloads of the app.

This, as South Africans are increasingly embracing the emerging digital currencies. Recent data from the Financial Sector Conduct Authority (FSCA) reveals that about 10% of the South African population – about six million people – own a crypto asset.

“The crypto asset market has grown significantly overall and shows no sign of slowing down anytime soon. The potential for blockchain technology and crypto assets to transform numerous industries still exists, despite the industry’s regulatory and other difficulties,” FSCA says.

With Triple-A as its processing partner, the CryptoExpress app facilitates cash-outs from Bitcoin, Ethereum, USD Coin, Tether as well as BinancePay, and is available for free download on iOS and Android app stores.

The CryptoExpress app leverages a portion of Paycorp’s pre-existing network of Cash Express ATMs, which also support standard cash withdrawals and a range of digital wallet and voucher cash-outs.

The company points out that this is a clear indication of how the financial landscape is evolving to offer solutions where traditional banking and emerging payment methods converge.

“Since the official launch of the CryptoExpress app in October 2023, we’ve witnessed a significant surge in app downloads from both the iOS and Android app stores,” Steven Kark, CEO of Paycorp, tells ITWeb via e-mail.

“This surge is accompanied by a remarkable level of user adoption and daily registrations. Most pleasing is the fact that this heightened interest is translating into an increase in cash withdrawals at CashExpress ATMs, with a growing number of repeat customers. This trend underscores the CryptoExpress App's ability to provide a positive and satisfying user experience,” he adds.

Steven Kark, CEO of Paycorp.
Steven Kark, CEO of Paycorp.

He notes that although the CryptoExpress app has been active in the South African market for just a few months, the positive outcomes have fuelled the firm’s ambitious expansion plans.

These include introducing additional features, enhanced functionality and value-added services, he says.

“Furthermore, we are set to extend our reach into markets where Paycorp currently owns and operates ATM networks, namely Namibia, Hungary, Slovakia, Czech Republic, and Croatia.

“In addition to geographic expansion, we are actively exploring numerous opportunities to collaborate with banking partners and independent ATM and POS [point-of-sale] networks that have expressed interest in integrating our platform.

“This strategic approach reflects our commitment to expansion and providing innovative financial solutions on a broader scale,” Kark says.

Paycorp says it was established in 1999 as the first independent ATM deployer in South Africa.

In South Africa, Paycorp is designated as a direct clearing system participant by the South African Reserve Bank with principal membership of BankservAfrica, Mastercard and Visa.

Kark notes that converting crypto to cash has traditionally been a lengthy process requiring holders of crypto to navigate exchanges, create wallets and accounts, and wait for funds to become available.

“With CryptoExpress, the conversion is simplified, streamlined, faster, and secure and cash can be withdrawn in a matter of minutes at conveniently located CashExpress ATMs.”

To withdraw cash, users convert their crypto-currency from any crypto wallet through the app, authorise the transaction in their crypto wallet, and receive a withdrawal voucher PIN generated by CryptoExpress.

They use this PIN and their mobile number at a CashExpress ATM to receive their cash.

Kark explains that CryptoExpress features real-time on-chain transaction hedging for the sales of crypto-currencies, guaranteeing the customer an exchange rate for the duration of the transaction, regardless of ever-changing crypto exchange rates.

“Our mission at Paycorp is to enhance cash accessibility, and this collaboration is a testament to this commitment. By joining forces with Triple-A, a trusted leader in the digital currency payments space, we are providing a new and convenient way for crypto holders in South Africa to access and make use of their digital assets,” he states.

Eric Barbier, Triple-A founder and CEO, echoes the sentiment: “Triple-A is thrilled to partner with Paycorp, a powerhouse in the payments industry. Triple-A’s mission of bridging the gap between digital and traditional currencies perfectly aligns with Paycorp’s dedication to connecting more people to their money. Together, we are expanding the ways people interact with their digital currencies.”

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