LovCash is upgrading the informal trade sector in South Africa by introducing blockchain-powered transactions. Created in 2018, the digital payment platform has teamed up with Lisk to help small retailers, supermarkets, and traders move from cash-based transactions to fully digital payments.
According to the 2024 Latest Quarterly Labour Force Survey (QLFS), informal sector employment accounted for 19.5% of total employment in South Africa. Despite being the second-largest source of jobs, the workforce operates mostly on cash, making it difficult for businesses to track sales, offer rewards, or extend credit.
Other disadvantages of a fully cash-based system include fraud and theft, costing the country an estimated loss of R3.3 billion (over $183 million) yearly.
The collaboration between LovCash and Lisk aims to bring what cash cannot always offer, which is improved visibility, more connection, and rewards across the supply chain. By building on Lisk’s blockchain, LovCash hopes to cut these losses by enabling decentralized, traceable transactions.
With LovCash;
- Retailers can place orders, compare prices, and earn cashback in CZAR.
- Wholesalers can run targeted offers and better support their best buyers.
- Suppliers gain real-time insight into what is moving, where, and when.
This system is designed for how businesses operate in high-growth markets. Unlike traditional banking, which charges high transaction fees on small payments, this blockchain-based system allows payments to move without middlemen.
By operating on Lisk, a secure, scalable blockchain infrastructure that helps local founders build real solutions for their communities, LovCash is aiming for massive success.
Lisk’s COO, Dominic Schwenter, says the partnership goes beyond payment systems.
“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.
Since its inception, LovCash has onboarded over 3,700 retailers and signed distribution partnerships with nine of South Africa’s largest wholesalers. According to the company, this has driven growth by 275% in the past five months.
This partnership is designed to help scale LovCash and attract further investments, with Lisk committing both funding and technical support to the platform.
