PEP STEPS INTO BANKING
Pepkor, South Africa’s largest clothing and mobile retailer, is preparing to launch a new bank inside its 6,000 stores.
The plan, informally called Pep Bank, aims to offer zero-fee accounts to low-income customers and directly challenge Capitec, the country’s biggest bank by client numbers.
Pepkor is in advanced talks with Investec about a potential partnership, although no deal has been finalised.
By using its huge store network and customer data, Pepkor could expand quickly and design products for underserved communities.
As competition intensifies, the move may reshape low-cost banking and increase pressure on traditional banks to improve affordability and access.
ZOOMING IN
1/ Pepkor's fintech division is already a major growth engine, with revenue surging 35% to R7.9-billion in its last half-year. Fintech now accounts for 16% of Pepkor’s total sales.
2/ The company sells eight out of every 10 prepaid cellular handsets in South Africa.
3/ Pepkor has over 2,400 employees in its fintech division
4/ Pepkor's group revenue rose 12.8% to R48.8-billion in the six months ended March 2025. Operating profit grew 13.3% to R5.8-billion.
5/ Shoprite, another major retailer, has also expanded into credit, insurance, and money transfers using customer data.
6/ South Africa’s four major banks have historically focused on middle- and upper-income groups.
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