Canada    FinTech Guide    Chapter 12    South Africa


12. Online-Pawning
South Africa  South Africa

The market is growing with the increase in debt. Consumers take loans on their expensive cars and sell their items frequently to cover debt and prevent from being placed under debt review.



Legal Affairs


A provider must be registered with the National Credit Regulator (NCR) as a credit provider. A registration fee is payable and annual renewal fees as well. The annual renewal fees are calculated upon the principal debt of the credit provider and the higher the debt, the higher the renewal fee. The National Credit Act 34/2005 regulates the industry.



Economic Conditions


The market is growing with the increase in debt. Consumers take loans on their expensive cars and sell their items frequently to cover debt and prevent from being placed under debt review. However, many of these services are not online but rather in-store.


  • Cash Crusaders
  • Cash Converters
  • Gold Capital
  • Capital Pawn


Miscellaneous


Fintechs need to stay updated with legislation to ensure their systems stay compliant with the Act, or stay in contact with the legal department of the pawn business to assist with reviewing their systems on a regular basis.

Because of a growing market, fintechs must ensure their systems can handle an increase in the amount of users.



Contributing Authors

Garlicke & Bousfield Inc

Brian Jennings
Durban, South Africa

Search by:

Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018