South Africa’s sprawling informal trade sector is getting a digital revamp as local payments platform LovCash teams up with German blockchain firm, Lisk, to introduce a secure, low-cost digital transaction system. The new solution is aimed at phasing out the cash-dependent structure that has long defined the country’s informal economy, which employs roughly 20% of the workforce.
LovCash’s move is targeted at supermarkets, small retailers, and street traders who typically rely on cash transactions, making it difficult to track sales, issue rewards, or provide access to credit. The digital-first system, backed by blockchain infrastructure, is designed to enhance efficiency, security, and traceability, offering informal businesses the tools to grow in a more organised and transparent environment.
Founder and CEO of LovCash, Costas Constantinou, said the partnership represents a turning point for businesses operating in fragmented, low-tech markets. “We are replacing cash with a digital-first system that improves trade, benefits, security, transparency, and efficiency,” he said, stressing the long-term value of building a digitally inclusive supply chain for the informal sector.
For years, the sector has resisted digitisation due to limited access to infrastructure and a deep-rooted preference for cash. This has made it difficult for stakeholders to implement systems that support credit access, reward schemes, and supply chain accountability. The absence of digital footprints also leaves businesses vulnerable to systemic inefficiencies and fraud.
Estimates suggest that cash-related fraud and theft drain over R3.3 billion (about $183 million) annually from South African businesses. By leveraging Lisk’s blockchain technology, LovCash seeks to curb such losses by enabling tamper-proof, traceable transactions that don’t require a traditional bank account. The move could serve as a model for digital transformation across Africa’s vast informal economies.