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From retail to fintech: HomeChoice’s digital revolution amid retail challenges

From retail to fintech: HomeChoice’s digital revolution amid retail challenges
Lisakanya Venna
By Lisakanya Venna
9 Mar 2025
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HomeChoice International has evolved from its humble beginnings as a homeware retailer to emerge as a fintech powerhouse. However, this journey, fuelled by strategic acquisitions, innovative leaps, and a commitment to digital transformation, has been tempered by struggles in its retail division, where customer satisfaction remains a persistent challenge.

The fintech revolution is gaining momentum. According to the BDO Fintech in Africa 2024 report, Africa’s fintech market, led by South Africa, Nigeria, Egypt, and Kenya, is projected to grow to $65-billion by 2030, with a compound annual growth rate of 32%.

One notable example of this growth is PayJustNow, a buy-now-pay-later platform that allows consumers to make purchases in three interest-free instalments. The buy-now-pay-later payment model was launched in South Africa around 2021.

Read more: Buy now, pay later, interest-free payment model expected to take off in South Africa

PayJustNow has partnered with companies like Pick n Pay to offer customers the option to buy high-ticket (expensive or high-priced items) as well as non-food items and pay later, with 34% of the price paid upfront and the remaining amount split into two instalments over the next two months.

At its core, HomeChoice has always targeted the mass market, particularly women, with innovative products and affordable credit options on digital platforms. However, it was the expansion of its fintech division, initially known as FinChoice, that marked a significant turning point.

In this competitive fintech environment, HomeChoice has carved a niche for itself with a comprehensive ecosystem — albeit with room for improvement in customer satisfaction.

Read more: HomeChoice’s fintech pivot drives more than R25m AI annual investment

This evolution has led to digital transactions accounting for 89% of total transactions, bringing in a combined total of R2-billion in revenue for the first half of 2024 alone.

Extra payments, faulty goods and annoying calls


However, this positive narrative is not universally reflected across all aspects of HomeChoice’s business. In contrast, the company’s retail division has faced challenges in maintaining customer satisfaction, with several customers reporting difficulties with service and support.

Over the years the Complaints Board has reported 322 complaints from dissatisfied customers, which led to the company’s 1.1 star rating. 

This month, Hellopeter — a South African online review platform showcased customers like Angie who said: “Hi... so i settled my account 21 Feb 2025 now they say i owe them more money. Where can I take this to cause this is *****ing.”

Angela’s ordeal was equally troubling, stating that “In December 2023 i purchased a laptop (Packard Bell) from Homechoice, 2 months later i encountered problems with the laptop, I called the agents to complain, they picked up the laptop, returned it within a week, but it was not resolved, I called again & same situation, this went on for 3 collections, eventually i requested that HOMECHOICE REPLACE the laptop but apparently they can’t, for the entire 2024, the laptop was laying around NOT being used, but guess what the payment is debited successfully every month…”

Another customer, Busisiwe, had a different but equally frustrating experience with HomeChoice. She also took to Hellopeter to complain about receiving persistent daily calls from HomeChoice agents, sometimes up to three times a day, pushing products she “doesn’t need”.

Clearing the air


Responding to these complaints and other similar to them, the retailer stated: “We respond to 99% of Hello Peter complaints within a 5.5 hour average… The customer service department comprises 30 people who handle an average of 45,000 customer queries per month across all channels. Of these customer queries, less than 80 are Hellopeter complaints. With more than half a million customers, we are proud to say that the complaints ratio is very, very low (circa 0,015%).”

The retailer told Daily Maverick that some customers remained disgruntled despite being offered proposed resolutions that were in line with HomeChoice’s published terms and conditions. Management said they aimed to find the best compromise in such circumstances and accepted that there was always something new to learn in order to improve their customer service.

Regarding Angie’s ordeal, HomeChoice told Daily Maverick it would apologise for the inconvenience and promised to investigate and resolve the matter quickly.

In Busisiwe’s “do not call” case, which was posted on Hellopeter the previous day, HomeChoice said it had actioned the request on the same day, although it might take up to 48 hours to reflect across all their systems. It also claimed to have contacted Angela to advise her that it would replace her laptop with a newer model and also replace her iron. However, in a subsequent follow-up call, Angela changed her mind and requested a full refund instead, which the company agreed to provide.

A 40-year evolution


The company has undergone a significant transformation in its fintech sector over the years. HomeChoice’s historic milestones as it stands on the cusp of its 40th anniversary in April include:

  • 1985: Rick Garratt started the Homechoice retail business as a catalogue-based retailer delivering homeware merchandise directly to South African homes. The business was one of the first retailers to offer credit to previously underserved South Africans, specifically those of colour.

  • 2007: FinChoice was established, offering financial services products, including lending and insurance to Homechoice customers.

  • 2010: The company launched USSD technology to enable customers to access credit 24/7.

  • 2013: Mobi site launched in a strategic move to cater to the growing number of smartphone users.

  • 2014: Homechoice International Plc was listed on the JSE. Today, the company is the 170th most valuable stock on the JSE, with a market capitalisation of R2.99-billion. The share price started the year at R30.00, but has since lost 6.67% of that value, placing it as the 307th on the JSE in terms of year-to-date performance.

  • 2016: FinChoice expanded its offerings by launching standalone insurance products, including funeral policies.

  • 2021: Weaver Fintech was established to house Homechoice’s fintech businesses, including FinChoice, and made its first major acquisition with an 85% stake in PayJustNow, a Cape Town-based buy-now-pay-later start-up- a payment model that allows consumers to purchase products or services online or in-store and pay for them at a later date, often interest free.


According to FinChoice CEO Sean Wibberley, as Fintech grew, the company leveraged its existing customer database, direct marketing platforms, and telemarketing expertise to create lending products for pre-approved, credit-worthy customers.

Wibberley spoke of the importance of data in Fintech's business model. 

“The one obvious thing about selling at a distance as opposed to at a retail store, is that every time your customer interacts with you it ends up being converted into data. We were able to leverage that data to make personalised pre-approved lending offers, which was a game changer in the market,” he said.

AI-driven


Wibberly stated that AI was the new wave on which they were riding.

“Where we’ve evolved now is ‘AI is the new digital’. We have data, we have digitised the customer, our relationship and our engagement. AI is enabling us to really take that data into new levels and… to get real-time credit limit adjustment as well as real-time fraud checks,” he said.

This shift towards AI had also been met with enthusiasm from customers, who were increasingly embracing technology. 

“Just like smartphones made it easier to transact to get a loan rather than phone… customers are finding it more and more useful to chat to a bot… and when it gets too complex they move to a human being… but for AI to work you need good data… and that is where we are at the moment.”

This positive customer response is reflected in the fintech division’s strong reputation, with Wibberly noting the HomeChoice’s fintech division Google rating. 

“Our Google rating is 4.6 stars, which for a lender is extremely good, and the reason I say that is because being a lender, you have to say no. Sometimes people can’t afford your loan, or their credit is getting wobbly. It’s not responsible to give the credit, so we do get customers annoyed with us when we can’t offer them what they want. It’s pretty hard to be five star, but 4.6 I’m very proud of,” he said. DM

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