Online businesses in South Africa have a variety of options for processing online payments.
The right payment gateway can significantly enhance the efficiency and security of transactions.
With the diverse needs of businesses, ranging from transaction fees to specific payment methods, the choice of a payment gateway is crucial.
This article provides a detailed analysis of the top 12 payment gateways in South Africa, evaluating each based on transaction fees, additional services, and suitability for different business models.
This selection aims to assist business owners and online merchants in making an informed decision that aligns with their specific requirements, ensuring smooth and secure financial transactions.
Best Payment Gateways in South Africa
1. Payfast – Best Overall
Payfast stands out as a leading payment gateway in South Africa due to its ease of setup and competitive pricing structure.
Charging 3.2% + R2 per transaction for card payments and a minimum of 2.0% + R2 for EFTs, it’s a versatile choice for various businesses.
The platform supports a wide array of payment options, enhancing its appeal. Additionally, Payfast offers cash-flow loans, an advantageous feature for businesses seeking financial flexibility.
This blend of features positions Payfast as a top choice for businesses prioritizing a balance of cost, convenience, and additional financial services.
2. Yoco – Best for Card Payments
Yoco specializes in card payments, making it an ideal choice for businesses heavily reliant on card transactions.
Its transaction fee is attractively structured, starting at 2.95% and decreasing to 2.6% based on volume.
This tiered pricing model benefits businesses with high card transaction volumes, offering cost savings as transaction numbers increase.
Yoco’s focus on card payments means it’s less suited for businesses needing a broader range of payment options.
However, for those prioritizing card transactions, Yoco presents a cost-effective and efficient solution.
3. Ozow – Best for Instant EFTs
Ozow is tailored for businesses looking for efficient EFT solutions.
With transaction fees ranging from 2.5% down to 1.5% for EFTs, Ozow is competitively priced, especially for businesses with a high volume of EFT transactions.
The platform’s dedication to EFTs means it lacks versatility in handling other payment types.
For enterprises where EFT is a primary transaction method, Ozow offers an optimal blend of efficiency and affordability, making it a strong contender in the EFT-focused segment of the market.
4. Zapper – Best for QR Code Payments
Zapper specializes in QR code payments, a rapidly growing segment in the payment industry.
It charges a flat fee of 2.9% per transaction. Besides standard transaction processing, Zapper also provides cash-flow loans, adding value for businesses seeking financial agility.
Its niche focus on QR code payments makes it less versatile but highly effective for businesses that benefit from this payment method.
For enterprises looking to tap into the convenience and growing popularity of QR code transactions, Zapper is an ideal choice.
5. SnapScan
SnapScan offers a transaction fee structure that varies from 2.95% to 2.55%, catering to businesses with varying transaction volumes.
While it doesn’t provide additional services like cash-flow loans or customer financing, SnapScan’s straightforward fee structure makes it an appealing option for businesses seeking simplicity and predictability in their transaction costs.
Its focus is on providing a reliable and efficient payment processing service, making it suitable for businesses that prioritize transactional efficiency.
6. Mobicred
Mobicred is unique in offering customer financing, charging a transaction fee of 3.5%.
This feature allows customers to make purchases on credit, potentially increasing sales for businesses.
Mobicred’s slightly higher transaction fee might be offset by the increased purchasing power it offers to customers.
This platform is particularly suitable for businesses selling higher-priced items or services, where the option of customer financing can be a significant sales driver.
7. Peach Payments
Peach Payments is a versatile option, catering to both card and EFT transactions. It charges 2.95% + R1.5 per card transaction and 1.50% + R1.5 per EFT transaction.
This dual approach makes it a comprehensive choice for businesses seeking a payment gateway capable of handling diverse payment methods.
While it doesn’t offer additional services like cash-flow loans or customer financing, its strength lies in its straightforward and competitive fee structure.
Peach Payments is ideal for businesses needing a reliable gateway for processing a mix of card and EFT payments efficiently.
8. Paygate
With a transaction fee of 3.5%, Paygate is on the higher end of the cost spectrum.
It’s known for its robust security and reliability, making it a worthwhile consideration for businesses that prioritize these aspects.
While it doesn’t provide extra services like foreign currency transactions or financial loans, its focus is on delivering a secure and stable payment processing experience.
Paygate is best suited for businesses where security and reliability are paramount, even if it means a slightly higher cost per transaction.
9. PayGenius
PayGenius charges a 3.2% transaction fee and stands out for its ability to handle foreign currencies, a significant advantage for businesses with international customers.
This feature broadens the potential customer base, allowing businesses to easily process transactions from around the globe. While its transaction fee is relatively standard, the added value of foreign currency transactions makes
PayGenius an attractive option for businesses looking to expand their reach beyond South Africa.
10. Paypal
Paypal is a globally recognized payment gateway, charging fees between 5% and 10% depending on the options selected.
It is notably higher in cost, but its widespread international acceptance and trustworthiness make it a strong contender for businesses with a global customer base.
The ability to handle transactions in foreign currencies is a significant advantage.
Paypal is ideally suited for businesses that need a globally recognized payment platform and are willing to pay a premium for its extensive reach and reputation.
11. 2checkout
2checkout charges a fee of 3.5% + 0.3€ per transaction and, like Paypal and PayGenius, handles foreign currencies.
This feature makes it a strong choice for businesses targeting international markets.
The combination of reasonable fees and currency flexibility positions 2checkout as an attractive option for businesses looking to cater to a global audience without the higher costs associated with some other international gateways.
12. Stripe South Africa
Stripe has recently expanded into the South African market, offering competitive rates and a reputation for innovation in payment technology.
While specific transaction fees for Stripe South Africa are not listed here, Stripe is known for its transparent pricing and a wide range of payment options, including cards and digital wallets.
Stripe’s entry into South Africa is significant for businesses looking for a modern, reliable, and globally recognized payment solution.
It is particularly suitable for tech-savvy businesses seeking a payment gateway that keeps pace with the latest trends and technologies in digital payments.