R&A Cellular is a South African point-of-sale (POS) platform serving the country’s informal retail sector, and Shoprite Holdings has agreed to acquire a majority stake in the company to deepen its commitment to financial services beyond its own store network.
R&A Cellular POS allows merchants to sell prepaid airtime and data, prepaid electricity, gaming tickets and subscriptions and entertainment products. The POS is also used to accept card-based payments.
The acquisition, subjected to regulatory approval, will allow Shoprite Holdings to extend its Shoprite Money Market financial services network to spaza shops and other informal retailers in townships and peri-urban communities.
Notably, R&A Cellular and ShopRite already have ongoing relationships; R&A Cellular allows the sale of Shoprite vouchers through its POS terminals.
According to R&A Cellular founder and CEO Rui Campos, merging with ShopRite Holdings will deepen retail scale with R&A Cellular technology and prepaid expertise to boost financial inclusion and unlock greater value for traders and communities across South Africa.
Being the largest South Africa’s largest supermarket retailer, ShopRite Holdings runs thousands of outlets across the country, including formats such as Shoprite, Usave, Checkers, Checkers Hyper, and LiquorShop. The company is serving millions of customers with groceries and everyday goods.
In recent years, Shoprite has continued to expand its footprint within South Africa. The company has opened hundreds of new stores, including newer branded formats, and has also invested in new technology like modern (advance) POS systems to improve customer service and operations.
The deal with R&A Cellular will allow ShopRite to build on its existing payment infrastructure which it has built across its store network and digital channels.
The company sees the informal sector as a hub that gets involved in frequent daily transactions, which is why it is committed to providing financial and digital services to the communities that are far away from formal banks or major shopping stores.
On the other hand, the integration will expand services, potentially increase foot traffic, and reduce reliance on cash for local merchants in the informal retail sector who already have R&A Cellular POS hardware.
R&A Cellular has been operating in the informal retail sectors for over 20 years, providing affordable, secure devices, and customer support that help small and large-scale businesses manage cash flow and expand product offerings. Its solutions are deployed across many stores, including both urban and rural areas, in the country.
However, it’s important to note that the financial terms of the acquisition between Shoprite Holdings and R&A Cellular were not disclosed.
