If you are researching payment gateways in South Africa, chances are you are not looking for theory. You want to know which gateways are available, how they perform in real-world transactions, and which option will work best once integrated into your website, online store, or mobile app.
Online payments in South Africa are uniquely complex. Customers expect flexibility and regularly switch between card payments, Instant EFT, QR codes, and Buy Now Pay Later options, often within the same checkout journey. As a result, the “best” payment gateway is rarely defined by brand recognition alone. Instead, it depends on how South African consumers actually behave when paying online.
This guide breaks down the leading payment gateways used in South Africa, explains how they work, outlines their strengths and limitations, and helps you decide which solution—or combination of solutions—fits your business.
Why Payment Gateway Selection Matters in South Africa
What Is a Payment Gateway?
A payment gateway is the technology that enables your business to accept online payments securely. It acts as the bridge between your customer, their bank, and your business systems. When a customer submits a payment, the gateway encrypts the data, sends it for authorisation, and returns an approval or decline in real time.
Without a compliant payment gateway, businesses in South Africa cannot legally process online payments. Whether you operate an ecommerce store, SaaS platform, booking system, or digital service, a payment gateway is a foundational requirement.
What Does Payment Gateway Integration Involve?
Payment gateway integration is the technical process of connecting your website or application to a payment provider. A successful integration ensures that payments are processed reliably, orders are created correctly, transaction statuses are tracked, refunds are handled properly, and settlements are recorded accurately.
A poor integration often doesn’t “break” visibly. Instead, it quietly reduces conversion rates, causes failed payments, and creates reconciliation issues that cost businesses revenue over time.
Why Integration Quality Is Especially Important in South Africa
South African consumers have strong payment preferences. Many customers trust Instant EFT more than cards, most transactions happen on mobile devices, and users quickly abandon checkout pages that feel slow or confusing.
A well-integrated payment gateway improves payment success rates, builds trust at checkout, protects cash flow through reliable settlement cycles, and reduces abandonment. The opposite is also true—weak integration quietly undermines revenue.
The Top 6 Payment Gateways in South Africa (Detailed Breakdown)
1. PayFast
PayFast is one of the most widely adopted payment gateways in South Africa. It allows businesses to accept several local payment methods through a single integration, making it popular with startups and SMEs.
Key Capabilities
Accepts Visa and Mastercard payments
Supports Instant EFT for bank-based payments
Enables SnapScan and Zapper QR payments
Includes Mobicred for Buy Now Pay Later
Compatible with WooCommerce, Shopify, and custom websites
Offers hosted checkout or API-based integration
Pricing Overview
Card payments average around 3.5%
Instant EFT typically ranges from 2.0% to 2.5%
QR payment pricing aligns closely with EFT
Withdrawal fees apply per payout
No monthly subscription fee
Limitations
Transaction fees can become costly as volumes increase. Reporting and advanced payment logic are limited, and payout fees apply each time funds are withdrawn.
Best Fit
Small to mid-sized South African businesses that want to launch quickly with cards, EFT, and QR payments in one solution.
2. Yoco
Yoco is best known for physical card machines, but its online gateway is also one of the most reliable card-only solutions in the local market.
Key Capabilities
Supports Visa and Mastercard online payments
Fast onboarding with minimal setup
Clean, mobile-friendly checkout
Integrates with ecommerce platforms and custom sites
Pricing Overview
Card fees typically range between 2.9% and 3.2%
No monthly fees
Predictable settlement timing
Limitations
Yoco does not support Instant EFT, QR payments, or Buy Now Pay Later options, which limits its use as a standalone gateway.
Best Fit
Businesses with card-dominant customers or those pairing Yoco with an EFT provider like Ozow.
3. Ozow
Ozow specialises in Instant EFT payments and is designed to reduce failed bank transfers while confirming payments in real time.
Key Capabilities
Real-time EFT payments from major SA banks
Instant payment confirmation
Plugins and APIs for ecommerce and custom platforms
Pricing Overview
EFT fees usually range from 1.5% to 2.5%
Refunds may attract additional costs
Limitations
Ozow does not process card payments, meaning a second gateway is required for full coverage.
Best Fit
Businesses serving EFT-heavy audiences and looking to reduce manual EFT drop-offs.
4. Payflex
Payflex is a Buy Now Pay Later provider that enables customers to split purchases into interest-free instalments.
Key Capabilities
Four-part instalment payments
Merchants receive funds upfront
Integrates with major ecommerce platforms
Pricing Overview
Merchant fees are higher than standard card payments
Pricing varies by agreement
Limitations
Customer eligibility checks can reduce the available audience, and fees are comparatively high.
Best Fit
High-value products or services where instalment payments significantly improve conversion rates.
5. Peach Payments
Peach Payments targets businesses that have outgrown entry-level gateways and require more flexibility.
Key Capabilities
Supports cards, Instant EFT, and BNPL
PayPal support on higher-tier plans
Works with ecommerce platforms and custom systems
Pricing Overview
Card fees typically range from 2.7% to 3.2%
EFT pricing varies by volume
Limitations
Setup is more complex than beginner solutions, and advanced features require higher-tier plans.
Best Fit
Growing ecommerce businesses with increasing transaction volumes.
6. PayPal
PayPal is primarily used by South African businesses that sell to international customers.
Key Capabilities
Accepts global cards and multiple currencies
Easy integration with most platforms
Pricing Overview
Higher costs due to transaction, FX, and withdrawal fees
Limitations
Does not settle in ZAR and is inefficient for local payments due to exchange controls and fees.
Best Fit
Businesses targeting international customers rather than domestic buyers.
Choosing the Right Payment Gateway for Your Business
Before selecting a gateway, consider the following questions:
Do your customers prefer cards or Instant EFT?
Is your checkout optimised for mobile users?
Would Buy Now Pay Later increase conversions?
Will you need subscriptions or marketplace functionality later?
Do you require international or ZAR-only payments?
Pro insight: Most South African businesses use more than one payment gateway to cover different payment behaviours and reduce risk.
Common Payment Gateway Mistakes to Avoid
Selecting a gateway based on brand recognition rather than customer behaviour
Relying on a single gateway for all payment types
Overlooking settlement timelines and cash flow impact
Ignoring mobile checkout performance
Failing to plan for scale, subscriptions, or future growth
final thoughts
There is no single “best” payment gateway in South Africa. The right choice depends on your customers, business model, transaction volumes, and technical requirements. Cards, Instant EFT, QR payments, and Buy Now Pay Later options all serve different audiences, and a thoughtful combination usually delivers the best results.
Digital Humanity specialises in payment gateway integration services for South African businesses, helping organisations combine multiple gateways into a seamless, secure, and scalable payment experience. With the right strategy and integration approach, businesses can improve payment success rates, streamline cash flow, and build long-term trust with customers.
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