Super Group Eyes Crypto Payments in Africa to Mitigate Banking Costs and Expand Customer Base
Super Group is actively considering the integration of cryptocurrency payments within its primary African markets, a move aimed at alleviating significant banking expenses and attracting a broader audience.
During the recent Q2 earnings call, Chief Executive Neal Menashe emphasized the company’s commitment to exploring innovative financial solutions within the cryptocurrency landscape. "We are dedicated to identifying and implementing fresh opportunities in the crypto sector," Menashe stated.
He elaborated that these initiatives are designed to bolster the company’s long-term growth prospects, as digital financial frameworks become more commonplace in the regulated gaming industry.
Menashe highlighted the critical role Africa plays in Super Group’s overall strategy. In the second quarter, the continent, along with the Middle East, was responsible for nearly 40% of the firm’s total revenue, which surged by 38.8% year-on-year to reach $229 million.
To support its rapid expansion, the CEO pointed out the need for substantial technological investments throughout the region. His remarks included plans to broaden acceptance of crypto payments in additional African markets, addressing the high banking costs that challenge local businesses.
The Impact of Cryptocurrency on Super Group’s Operations in Africa
African enterprises frequently contend with elevated transaction fees and extended settlement times, which can complicate financial operations.
Menashe remarked, "We face banking challenges in our African ventures. I believe that cryptocurrency can significantly alleviate these issues, as banking costs are a substantial burden here, especially concerning onboarding new clients and processing payments across the continent." He also indicated that engaging with cryptocurrency could attract a new demographic of customers.
Regulatory support in various African nations furthers the company’s ambitions in the crypto domain. “This could draw in a different sort of client—akin to how we appeal to distinct segments within the casino industry,” Menashe explained. "This diversification aligns perfectly with our long-term strategy and presents opportunities for cost-effective processing solutions that could directly enhance our profitability."
Super Group recognizes that its focus on technology, crypto integration, and initiatives like the Jackpot City launch will play a key role in ensuring sustainable success in Africa. The company anticipates a gradual integration of alternative payment systems and digital assets into the established gaming framework.
While it expands its presence in Africa, Super Group has recently decided to withdraw from the US market, a move attributed to financial pressures. Despite a record quarter in North America, which saw revenues soar to $199 million in Q2, the exit from the US is projected to incur a one-time cost ranging between $30 million and $40 million.
Menashe also announced plans to find a buyer for Super Group’s US player database as part of this strategic shift.
Strong Q2 Performance Leads to Increased Revenue Projections
Super Group reported a remarkable 30% year-on-year revenue growth, totaling $579.4 million in Q2. The surge was largely driven by heightened activity across African, European, and North American markets, contributing to an unprecedented quarterly revenue result.
However, the overall growth was somewhat tempered by declines noted in the Latin American, Middle Eastern, and Asia-Pacific regions.
The company saw its active customer base grow as well, with monthly active users rising by 21% to 5.5 million compared to 4.5 million in the same quarter the previous year, marking five continuous quarters of growth in this area.
Before tax profit for the period amounted to $38.8 million, reflecting the strength of Super Group’s overall performance during this quarter.