A New Challenger: Pepkor Plans Pep Bank to Take On Capitec, Shoprite With 2,500 Branches

A new bank is coming to South Africaand it won’t need to build a single branch.

Pepkor Holdings is looking for a banking chief as it prepares to launch a “fully integrated transactional-banking model” across more than 2,500 outlets in South Africa.

The Plan

In a job posting dated 11 March, the retailer said the senior leader will drive the shift to banking, leveraging its massive store network to reach millions of lower-income customers.

“This is a critical role that demands an entrepreneurial spirit, a deep understanding of retail banking, and the ability to execute large-scale strategic initiatives.”

Pepkor received approval from South African authorities last year to establish a banking presence and bought a financial technology platform to support the expansion.

The Team

In December 2025, Pepkor appointed Richard Wainwright as an independent non-executive director. Wainwright served as CEO of Investec Bankone of South Africa’s largest banksfor just over eight years until 2024.

The Target Market

Pepkor is Africa’s largest seller of clothing and mobile phones. Its target customers are low-income customersthose with no bank account or who are underserved by traditional lenders.

That puts it in direct competition with:

• Capitec: South Africa’s largest bank by customers, with a primary customer base earning R5,000 to R40,000 per month

• Shoprite: The country’s largest grocer, which already offers Money Market products designed for lower-income customers, including grant recipients

The Advantage

Pepkor has what new banks dream of: existing infrastructure.

By opening Pep Bank within its existing stores, the retailer can roll out branches quickly and attract customers who already frequent its discount outlets.

It also has valuable consumer spending data gathered from loyalty programmes.

The Numbers

Revenue at Pepkor’s fintech unit rose 31% to R16.6 billion in the year through 30 September, accounting for 17% of the company’s total sales.

The Competition

Banking industry analysts believe incumbent banks and new playerssuch as OM Bankshould be concerned.

Shoprite already offers basic financial services: fund transfers, bill payments, and cash withdrawals. Pepkor will now do the sameand more.

The Bottom Line

Capitec has 2,500 branches? Pepkor has 2,500 storesand it’s about to turn them into a bank.

Low-income customers are the target. Existing infrastructure is the weapon. And the battle for South Africa’s underserved is about to get a lot more interesting.

{Source: BusinessTech}

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