Pepkor Combines Flash, Shop2Shop to Create FintechCo

Pepkor Holdings, one of South Africa’s biggest retailers, is expanding beyond stores by building financial services for merchants and consumers in the country’s large informal economy. Its Flash unit distributes value-added services and digital products, while Shop2Shop provides acquiring, payments, cash management and trade tools. Combining the two would create a single platform spanning formal and informal markets, helping cash-reliant merchants digitize while preserving access to cash transactions.

Pepkor said on July 22, 2026, it would form FintechCo by contributing all of Flash, valued at 10.6 billion rand, and subscribing for 1.57 billion rand of new Shop2Shop shares. The deal values FintechCo at about 21.3 billion rand and gives Pepkor a 57.1% controlling stake. The combined platform will process more than 200 billion rand annually. Completion is subject to regulatory and competition approvals, and Pepkor plans a separate listing of FintechCo over the medium term.