South African startup, 6DOT50, introduces crypto payment option for car purchases

South African crypto payments company 6DOT50 has partnered with car financing platforms Seriti Solutions and BTS to enable vehicle purchases using cryptocurrency.

The solution is now live across 1,400 dealerships nationwide.

How it works

• 6DOT50 operates a platform that lets users convert cryptocurrency into fiat vouchers for purchasing goods.  
• These vouchers can be further redeemed via a link on the dealership platform, which then settles the payment in fiat.
• According to its website, the feature supports eight cryptocurrencies, including Bitcoin.

Key quote 

• Warren Venter, the founder of 6DOT50 said: 

“By creating a bridge between crypto users wanting to spend their value and dealerships wanting to be paid in local fiat currency, 6DOT50 vouchers provide the perfect solution.” 

Before now 

• South Africa is home to a few platforms that allow users to go seamlessly from their digital currencies to cash acceptable for everyday payments. 
• In 2023, Mariblock reported that the large South African retail store, Pick n Pay, partnered with crypto payments company, CryptoConvert, to allow shoppers pay for goods with bitcoin.  
• The feature has since expanded to enable users of crypto exchanges such as Binance, VALR and Luno to pay for goods directly from their wallets. 
• On the back end, CryptoConvert processes the payments and pays out to the store in fiat. 

Zoom out 

• Regulatory clarity in South Africa has allowed companies like 6DOT50 and CryptoConvert to thrive. 
• Already, the Financial Sector Conduct Authority has issued operational licenses to 248 crypto firms in the country after it recognized cryptocurrencies as financial products. 
• However, cryptocurrencies are still not recognized as legal tender. As such, merchants such as Pick n Pay cannot accept cryptocurrency payments directly but through crypto-to-fiat gateways like 6DOT50 and CryptoConvert.