Shoprite Holdings Ltd., Africa’s largest food retailer, is reportedly in ongoing discussions with banking group Investec Ltd. about a potential fintech partnership to expand Shoprite’s financial services. The final structure has not been determined, and there is no certainty the companies will reach a deal. Both companies declined to comment on the speculation.
The potential partnership would support Shoprite’s strategy to broaden its financial services beyond basic payments without becoming a bank. It could draw on Investec’s banking and technology expertise to help Shoprite offer more advanced financial products through its extensive retail network.
Shoprite has recently invested in its fintech capabilities, including acquiring a 51% stake in payments company R&A Cellular. The retailer also works with African Bank on its Money Market Account and has been testing a Mastercard debit card.