South Africa’s fragmented and largely cash-dependent informal retail sector is undergoing a significant shift with the introduction of blockchain-powered digital infrastructure. LovCash, a local fintech startup, has unveiled a blockchain-based payments and commerce platform aimed at reducing cash reliance while improving transparency and efficiency in last-mile retail distribution.
Transforming a Cash-Heavy Supply Chain
LovCash’s initiative targets thousands of informal retailers and small-scale wholesalers across South Africa, many of whom have long operated outside the reach of traditional financial systems. Through the new platform, these businesses can access a suite of end-to-end digital tools designed for payments, commerce, and rewards.
The company’s network currently includes over 3,700 informal retailers and nine partnered wholesalers. These stakeholders now stand to benefit from digital systems that streamline transactions, reduce fraud risks, and unlock access to features like credit, discounts, and loyalty incentives.
Industry insiders have confirmed that a major fast-moving consumer goods (FMCG) player in South Africa has begun working with LovCash to integrate the startup’s blockchain-powered payment platform into its informal retail network. This move signals a growing willingness among large corporations to adopt blockchain for real-world, high-volume operational use cases.
Backed by Lisk and Built for Real-World Impact
LovCash’s technology now runs on Lisk, an Ethereum Layer 2 network optimized for high-growth and cost-sensitive markets. The Lisk ecosystem has also extended direct support to LovCash, offering not only capital investment but also technical guidance and strategic alignment. This positions LovCash among a select group of startups receiving direct backing from the Lisk ecosystem.
Lisk’s leadership views the partnership as an example of blockchain’s practical applications in emerging markets. Rather than focusing on speculative or purely financial use cases, LovCash is tackling infrastructure problems within trade environments that are typically underserved by legacy financial systems.
By bridging the digital gap in low-tech, high-volume commerce networks, LovCash and Lisk aim to demonstrate how blockchain can serve as a foundational layer in improving economic efficiency, traceability, and inclusion.
In South Africa’s informal economy, cash is still king.
It’s fast. It’s trusted. But it hasn’t always made it easy to grow, connect, or see the full picture.
That's why we're teaming up with LovCash to bring what cash can't always offer: visibility, connection, and rewards… pic.twitter.com/vnZUa7OcY2
— Lisk (@LiskHQ) June 17, 2025
Digital Isn’t Just About Tech — It’s About Trust
While LovCash’s approach has earned attention, experts have emphasized that infrastructure alone won’t drive digital adoption in South Africa’s informal economy. The 2025 BankservAfrica Payments Conference highlighted critical behavioral and structural challenges facing such transitions.
Panelists acknowledged that cash continues to dominate because of its familiarity, emotional value, and universal acceptance, particularly in communities where digital systems are inaccessible or unreliable. They also pointed out barriers such as expensive point-of-sale devices, unstable connectivity, and insufficient technical assistance.
Industry voices stressed that cash will remain a part of the financial landscape for decades to come, suggesting that the goal is to reduce dependency rather than eradicate it altogether.
A Step Toward Inclusive Digital Commerce
LovCash’s blockchain rollout is ultimately framed as a step toward a more inclusive, transparent, and efficient commerce ecosystem. By offering informal businesses a way to digitize their operations without the steep costs or complexity typically associated with such transitions, the company is helping to level the playing field for smaller players in South Africa’s supply chain.
The collaboration between LovCash and Lisk reflects a broader industry trend: moving from speculative blockchain narratives toward tangible infrastructure deployment, especially in regions where traditional financial systems have failed to provide inclusive access. As more corporations and retail networks begin to explore blockchain’s real-world applications, this partnership could serve as a blueprint for similar initiatives across other emerging markets.
