THEFinTech business of retailer Pepkor, previously Steinhoff Africa Retail, reported a decline in revenues for the three months ended December 2021.
Pepkor informed investors today that its FinTech business saw a 9.9% drop in revenues to R2.1 billion for the quarter.
The company attributed the decline to the FLASH business where a deliberate change in product composition resulted in income now being recognised as net commission versus full transaction value as determined by International Financial Reporting Standards.
“This change forms an integral part of the FLASH strategy to increase profitability and grow its basket of products and options to improve trader and customer retention,” the company explained.
“Virtual turnover continues to show double-digit growth and the profitability of
the business remains positive and intact.”
The company operates its FinTech division through FLASH and Capfin.
However, Pepkor said the Capfin business achieved positive revenue growth and the credit book increased marginally to R2 billion from R1.9 billion a year ago (on a gross basis).
“Non-performing loans improved and remain at very healthy levels.”
Pepkor, which is a subsidiary of JSE-listed Steinhoff, owns clothing retailers Pep and Ackermans, furniture stores such as Bradlows, Russells and Incredible Connection.
Capfin was founded in 2010 with a vision to provide customers with affordable loan products and services. It has partnered with PEP and Ackermans to provide convenient and reliable services to customers.
The FLASH business has enabled people in townships and rural areas to start their own businesses using FLASH Business devices while existing shop owners are able to increase their business by offering multiple services to bring more feet into their shops.
A Flash Shop can be a Spaza shop in your township or village. FLASH is a tech company that enables small business owners to offer affordable payment options.
It is now the largest informal retail network in Africa supported by its dedicated field staff that are active across the country.
It also uplifts their traders and creates a safe, secure, and convenient way for people to get what they need without having to travel into town.