Pepkor doubles down on informal traders with Flash–Shop2Shop merger

Pepkor has moved to strengthen its presence in South Africa’s informal-trader market by merging its Flash merchant fintech business with Shop2Shop in a deal reported to be worth R21.3 billion.

What the deal does

The companies say the tie-up brings together Flash, Pepkor’s fintech built for informal traders, and Shop2Shop’s merchant payments, cash-management and trade services. Pepkor describes the combined operation as a play to become South Africa’s leading fintech platform spanning both formal retail and the informal trading sector.

How the transaction is structured

According to Pepkor, the new structure gives FintechCo 57.1% of the merged entity. That ownership is achieved by a R1.57 billion payment for Shop2Shop shares plus the injection of Pepkor’s entire Flash business, which is valued at R10.6 billion.

Scale and performance

Flash is designed to convert previously undocumented cash transactions into digital ones for informal traders. Pepkor’s latest annual results put the Flash network at 176,000 traders, processing R34 billion in transactions.

Pepkor says the standalone Informal Market Platform posted R562 million in operating profit for the first half of 2026, an increase of 23.5% on the previous half-year.

Strategy and next steps

Pepkor frames the merger as central to growing its Informal Market Platform segment, with a possible future listing held out as a way to unlock shareholder value. The company says the two businesses already work closely and that the transaction formalises that relationship while aiming to help merchants go digital without excluding those who still operate in cash.

Voices from the companies

Shop2Shop’s chief executive, Peter Berry, said his company set out to serve an informal merchant market that had been overlooked.

Market context

Pepkor positions the merged business as a merchant commerce and fintech operation that pairs value-added fintech services for informal traders with traditional merchant payments and trade services from Shop2Shop. The company points to steady consumer demand and more merchants coming online as supporting tailwinds for the strategy.