PEP plans new low-cost digital bank rollout for 2027

Pepkor, the parent company of PEP, is preparing to launch a standalone digital and physical bank in South Africa as competition in the country’s banking sector continues to grow.

The banking platform, currently operating under the codename “plusb”, is expected to officially launch in 2027 and will focus on offering accessible, low-cost banking services to underserved and lower-income communities.

According to Pepkor, the bank plans to combine digital banking with PEP’s nationwide retail footprint of more than 2,500 stores across South Africa.

Pepkor wants to bring banking closer to underserved communities

The company says the new bank will specifically target consumers earning less than R15,000 per month, many of whom remain underserved by traditional banking institutions.

Rather than relying only on digital access, plusb will use PEP stores as physical banking touchpoints in townships, smaller towns and rural communities.

This hybrid approach aims to make banking more accessible for customers who still rely heavily on cash transactions and in-person services.

plusb plans zero-fee banking model

Pepkor says the new bank will focus on affordable banking services, including a zero-fee banking structure designed to appeal to price-sensitive consumers.

The retailer expects the business to reach break-even by 2030 following its planned 2027 rollout.

Former Investec CEO joins project leadership

As part of the development process, Pepkor appointed former Investec Bank CEO Richard Wainwright as an independent non-executive director.

The appointment is expected to support the development and strategic direction of the banking platform ahead of launch.

PEP already offers financial services across South Africa

While the fully licensed plusb bank is still under development, PEP already operates several financial service offerings through its stores nationwide.

Current services include:

• In-store PEP accounts
• Cash withdrawals
• Money transfers
• Bill payments

The retailer already processes millions of these transactions through its branch network each year.

South Africa’s digital banking sector continues to grow

Pepkor’s planned expansion into banking comes as South Africa’s digital banking market becomes increasingly competitive, particularly among retailers and fintech companies targeting lower-income consumers.

The company’s large physical store footprint could give it a significant advantage in communities where access to traditional bank branches remains limited.

Pepkor has not yet revealed the official name, full product offering or launch date details for plusb beyond its planned 2027 rollout timeline.

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