The township economy is one of South Africa’s strongest economic lifelines.
At its centre are spaza shops – small, often family-run businesses that keep millions of households stocked with daily essentials. Yet many of these shops still rely on cash-only systems. The result is slower growth, higher risk and fewer opportunities to build a financial footprint for future credit.
Reinard Janse van Rensburg, Altron fintech regional sales manager, argues that change is both possible and necessary.
“When small businesses have access to the same tools as formal retailers, they stop playing catch-up and start competing on a level footing,” he says.
The cost of cash dependence
For consumers, cash-only trading means fewer ways to pay. For shop owners, it creates problems with record-keeping, limits the ability to build creditworthiness and makes stock negotiations harder and handling cash also brings safety risks.
“Cash-based trading keeps spaza shops in survival mode,” Reinard Janse van Rensburg explains. “It limits their ability to build a financial history, and it exposes them to risks that can easily be managed with affordable technology.”
Without access to transparent systems that improve cash flow management, many of these businesses remain shut out from the growth opportunities that could take them forward.
Payment systems opening doors
Card-enabled point-of-sale devices have become a fixture in modern retail. For spaza shop owners, they are now affordable, mobile and simple to use. Altron FinTech’s devices support tap-to-pay, chip-and-PIN and QR code payments, giving traders access to customers who prefer not to carry cash.
“The days of turning customers away because they do not have cash are over,” says Janse van Rensburg. “Card acceptance is no longer a nice-to-have. It has become a necessity for growth.”
Once in place, the benefits are immediate. Consumers tend to spend more per visit, turnover rises and shop owners gain clear records of their transactions.
Another step forward has come through DebiCheck. By authenticating debit orders, the system reassures both traders and their suppliers.
“DebiCheck changes the game for informal traders,” Reinard Janse van Rensburg says. “It gives them credibility with suppliers, while also allowing them to offer repayment plans to their own customers. That kind of trust fuels growth on both sides.”
In practice, it means suppliers are more confident to extend stock on credit, while customers can buy essentials without paying everything upfront. Over time, traders also build a recognised credit profile, which opens the door to financing.
From survival to momentum: stories from the ground
These solutions are not abstract. They are already making a difference.
In Soweto, Sibongile’s shop used to lose out when customers arrived with only cards in hand. After adopting a point-of-sale device, her daily sales climbed by 25 percent. Customers bought more, cash flow improved, and she reinvested to expand her stock.
In Khayelitsha, Mandla secured a supply deal with a major wholesaler through DebiCheck. Weekly deliveries on credit now keep his shelves stocked, with repayments handled automatically. He has also started offering monthly repayment plans to his own customers, which has boosted turnover and margins.
In Tembisa, Dineo studied the transaction data from her device. She noticed trends, adjusted her prices and introduced bundled promotions. Her margins improved and she broadened her product range to meet demand.
“These success stories prove that when informal traders are given the right tools, they do not just survive, they thrive,” says Reinard Janse van Rensburg. “Technology helps them grow their businesses, create stability and uplift their communities.”
Practical steps for shop owners
Reinard Janse van Rensburg points to a set of simple but effective measures that can move township businesses forward:
- Adopt card acceptance to give customers choice and reduce reliance on cash.
- Use DebiCheck to strengthen relationships with suppliers and offer more flexible terms to customers.
- Apply sales data to shape promotions or loyalty programmes that keep customers returning.
- Negotiate better terms with wholesalers by using structured, trusted payment systems.
“These are practical, achievable steps,” he says. “Each one makes a measurable difference to cash flow, customer loyalty and growth potential.”
Looking ahead
The township economy will continue to play a central role in South Africa’s future. Its success depends on traders gaining access to the same financial tools long used by formal businesses. Solutions that are secure, affordable and accessible create the platform for growth.
“Ultimately, the future of the township economy is tied to financial inclusion,” Reinard Janse van Rensburg says. “By bridging the gap between informal and formal trading, we are helping entrepreneurs reach their potential.”
“By embracing modern payment systems, township businesses can move beyond survival and unlock the full promise of South Africa’s informal economy,” Reinard Janse van Rensburg concludes.