The agreement is subject to regulatory approval.
The agreement does not replace its relationships with other lenders. Picture: Gallo Images/Fani Mahuntsi.
Shoprite Group, Africa’s largest grocery retailer, is expanding its financial services offering by partnering with Investec to introduce a debit card and an expanded transactional account for customers, subject to regulatory approval.
The retailer announced the agreement with the lender on Monday, citing that the partnership will strengthen Shoprite’s ability to provide customers with convenient, affordable and accessible financial services through its extensive nationwide footprint and growing digital ecosystem.
The group owns Shoprite, Shoprite USave, Checkers, Checkers Hyper, Uniq Clothing, and others. It is currently unclear whether the offering will become available to all stores in the group.
Shoprite debit card benefits
The retailer said the debit card will offer customers payment flexibility and access to a broader range of digital services, among other benefits.
“As part of the agreement, which is subject to regulatory approval, Investec will become the banking sponsor for an expanded transactional account offering from Shoprite Financial Services, including the introduction of a debit card.
“The enhanced offering is expected to provide customers with greater payment flexibility, improved security and access to a broader range of digital and everyday payment solutions.”
Shoprite’s relationship with other bankers
Shoprite added that the partnership with Investec relates to the banking infrastructure and services supporting the group’s broader fintech ambitions.
The retailer assured that the agreement with Investec does not replace its relationships with other lenders.
“It does not replace the group’s existing relationships with other banks, financial service providers, loyalty partners, payment providers, or other strategic ecosystem partners.”
How the debit card will work
“Under the proposed alliance banking model, Shoprite Financial Services will provide the customer-facing proposition through the group’s brands, stores and digital channels, while Investec, as the licensed banking partner, will provide the underlying banking infrastructure and regulatory framework,” said Shoprite.
“This structure will enable Shoprite Financial Services to expand its transactional offering without establishing a separate bank. “
The retailer added that it and Investec continue to explore further opportunities, building on the proposed alliance banking partnership.
