- South African fintech company Paycorp has rolled out CryptoExpress, a new app that allows users to withdraw their cryptocurrency as cash (South African rand) at about 3,000 ATMs in the country.
- CryptoExpress seamlessly integrates with several cryptocurrency wallets to enable withdrawals at Cash Express ATMs operated by ATM Solutions, a Paycorp subsidiary.
- The app, which has strong encryption and security measures, has a feature that allows users to locate nearby Cash Express ATMs.
CryptoExpress app, which has been in testing since April 2023, is available for iOS and Android. Users can cash out their bitcoin, ether, and stablecoins like USD coin and tether.
How does it work? To get cash, users must first convert their cryptocurrency through the app, authorise the transaction in their cryptocurrency wallet, and then wait for CryptoExpress to send them a withdrawal voucher PIN.
After that, they can visit any Cash Express ATM to get cash in South African Rands by entering their mobile number and the withdrawal voucher PIN.
Paycorp Group CEO Steven Kark says that many South Africans can easily access these ATMs because they are situated in both urban and rural areas, at forecourts and informal and formal retailers, as well as hospitality locations.
The Paycorp solution uses a vast network of already-existing ATMs, in contrast to Bitcoin machines, which enable blockchain transactions. The company claims only about 30 Bitcoin ATMs are operating in South Africa, and all of them are located in the country's major cities rather than in rural areas or smaller towns.
Paycorp's introduction of CryptoExpress will transform the South African cryptocurrency market. The easy cash withdrawal from an extensive network of ATMs makes cryptocurrency use more practical.
This move also positions it as a comprehensive financial services provider with capabilities spanning both traditional and emerging payment systems.
It is no news that the adoption of cryptocurrencies is soaring throughout Africa, with Kenya, South Africa, and Nigeria setting the pace.
A recent Chainalysis report claims that regulation has led to an increase in exchange activity in Sub-Saharan Africa. South Africa has led the way in the region when it comes to cryptocurrency regulation and the creation of favourable trading environments.
In January 2023, South Africa's Advertising Regulatory Board (SARB) added a clause to its Code of Advertising Practice that informs crypto-related advertisements and what they should contain.
For context, crypto ads in South Africa must now state that investing in crypto assets may result in a loss of funds. The overall statement of the ad should re-echo the warning statement and not downplay it to protect unsuspecting users from being misled by unethical ads.
Besides, South Africa's Financial Sector Conduct Authority (FSCA) announced in October 2022 that all cryptocurrency financial companies in the country must apply for a licence between June 1 and November 20, 2023, to operate legally.
Per the Chainalysis report, this move helped provide the industry with more legal clarity, enabling financial investigators to combat illicit activity more effectively. The nation's proactive approach to regulation has reduced regulatory ambiguity and facilitated the trading of established and new digital tokens.