Kazang Brings Card Payments to Spaza Shops, Driving Fintech-Fuelled Financial Inclusion

Spaza shops are going digital, and fintech is leading the charge. Kazang, a subsidiary of JSE-listed Lesaka Technologies, is on a mission to digitise South Africa’s informal retail sector by enabling micro-merchants like spaza shops to accept card payments for bill settlements. This move not only modernises township commerce but also propels financial inclusion deeper into South Africa’s grassroots economy.

For years, paying monthly bills like DStv subscriptions meant long trips to formal retailers, high transport costs, or risky cash withdrawals for residents in rural and peri-urban areas. But thanks to Kazang’s card payment integration, local spaza shops are becoming financial service hubs—offering community members safer, more convenient alternatives to manage their finances.

Fintech at the forefront of township commerce

Kazang Pay, the fintech’s card acquiring division, is extending its terminal’s capabilities to include card-based bill payments—a leap from its already extensive value-added services (VAS) network. While Kazang merchants have long facilitated prepaid airtime, utilities, and other cash-based services, the ability to settle bills with a debit or credit card is a recent, and game-changing, development.

“Paying by card is safer and more convenient,” says Ashley Naidoo, Kazang Pay director. “We’ve seen strong uptake since launching this service, driven by factors like SASSA card usage and improved digital literacy. For many consumers, card payments are now a preferred option.”

Kazang’s terminals—about 90,000 across South Africa, Namibia, Botswana, and Zambia—are widely distributed among township and rural merchants. Nearly 60,000 of these are already card-enabled, positioning the fintech to transform everyday merchants into critical access points for digital finance.

How spaza shops benefit from digital inclusion

The model works well for small merchants. Kazang provides the terminals at no rental cost for merchants who meet a manageable transaction threshold. Transaction fees are kept low, helping entrepreneurs maintain profitability while increasing foot traffic.

DStv is already onboard as the first major biller, enabling customers to settle subscriptions via card at their local Kazang Pay-enabled store. More partners are expected to follow, further enhancing the range of services available to consumers without requiring them to travel far or carry cash.

“Our goal is to increase transaction volume while also making life easier for consumers,” Naidoo explains. “We want spaza shops to be more than just retail outlets—they should be financial lifelines for their communities.”

A broader fintech ecosystem impact

By turning spaza shops into service hubs, Kazang supports Lesaka Technologies’ broader goal of expanding financial access in underserved markets. It’s a grassroots approach that not only empowers merchants but also ensures money stays within the local economy, reducing leakage to formal retail.

As the fintech sector matures, solutions like Kazang’s are proving essential in narrowing South Africa’s digital divide. The intersection of accessibility, affordability, and innovation is where true impact lies—and Kazang is setting that standard.