Payment gateways in South Africa (2024) | Complete A – Z guide

These days, more moving parts are involved in running a successful online business than ever. If not approached correctly, some can become an unnecessary challenge for your business, especially when it comes to accepting online payments. That’s where this guide comes in. It unpacks the best payment gateways in South Africa, how they work, their features, and more.

While cash remains king in South Africa, digital payments are steadily gaining ground. With more customers seeking flexible payment methods, ScanToPay, Buy Now, Pay Later (BNPL), digital wallets, and vouchers are all avenues that business owners should consider offering.

These methods are not only flexible but also highly secure and very user-friendly. A good payment gateway can offer your business all these benefits, but where do you begin?

Which one do you choose, and do you choose only one? Are there downsides to using them? There are a million questions around payment gateways, and if you’re asking them, you’re in the right place to find all the answers you need. This is your ultimate guide to payment gateways.

Understanding payment gateways and how they work

Before diving headfirst into the various payment gateways available in South Africa and, more importantly, which ones are worth your investment, you’ll need to understand the basics.

Here’s a quick rundown of the foundation of payment gateways.

Payment gateways and payment processors? What’s the difference?

By now, you’ve likely seen two terms referenced frequently: payment gateways and payment processors, but what distinguishes them? These are two distinct components of successful transactions, essentially working together but performing separate actions.

• Payment gateway: Collects customer information related to a purchase, secures that information, and sends it to the processor.
• Payment processor: Receives customer information and then uses it to contact the customer’s bank and the merchant account, debiting one and crediting the other.

What is a merchant account?

It might seem like a small aspect of successfully integrating a payment gateway into your eCommerce store, but there’s more to a merchant account than you may think. The first thing to know is that a payment gateway and a merchant account are not the same thing; you need both to accept online payments.

Consider a merchant account as a unique type of bank account that your business will use to accept credit or debit card payments from your customers.

Whenever your store receives compensation from customers, these funds are held in this account temporarily before being deposited into your business bank account.

Primary types of payment gateways

Generally, there are three types of payment gateways:

• On-site: Typically, large-scale businesses use on-site payments, which are handled on their own servers. The entire checkout experience and payment processing are conducted through an in-house system, making it easier to handle large amounts.
• On-site and off-site combined: Using this method, the front-end checkout occurs on your site, while payment processing takes place through the gateway’s back end. While this does offer increased security, it does take away some of your control over your customer’s journey.
• Redirect: A redirect payment gateway typically offers multiple payment methods through a third-party site. Customers are redirected to a secondary site to complete their purchase, which simplifies things for the merchant but adds an extra step to the customer’s journey.

Top South African payment gateway options

Now that you’re all clued up on payment gateways and how they work, let’s take a closer look at a few of the best payment gateways in South Africa, their benefits, key features, and more.

1. Netcash

Netcash gives eCommerce merchants a complete, reliable payment solution. With support for cards, EFT, debit orders, BNPL, and vouchers, you can serve a wide range of customers. Features like recurring billing and easy reconciliation make managing online sales simpler.

PCI DSS compliance and fraud protection keep transactions safe, while integrations with platforms like Shopify and WooCommerce ensure a smooth setup for your online store.

Key takeaways:

• All-in-one solution for online businesses.
• Recurring billing is ideal for subscriptions.
• Secure, PCI-compliant payments.
• Easy integration with popular eCommerce platforms.

2. PayFast

PayFast helps online merchants accept payments fast, with options like cards, EFT, SnapScan, and Mobicred. Features such as split payments and recurring billing are well-suited for marketplaces and subscription models.

It’s PCI compliant with built-in fraud protection, giving peace of mind. With 80+ shopping cart integrations, it’s easy to plug into your existing eCommerce store.

Key takeaways:

• Wide variety of payment methods.
• Useful for marketplaces and subscriptions.
• Secure, fraud-protected transactions.
• Integrates with 80+ shopping carts.

3. Yoco

Yoco isn’t just about card machines. Their online payments help eCommerce stores process secure card transactions, generate payment links, and create invoices. Real-time analytics and instant payouts support cash flow.

Encryption and PCI DSS standards keep customer data safe. Easy integrations with eCommerce platforms and invoicing tools make it attractive for small to medium businesses.

Key takeaways:

• Great option for SMEs trading online.
• Payment links expand selling channels.
• Strong security standards.
• Integrates with eCommerce sites and apps.

4. Ozow

Ozow specialises in instant EFT, making it perfect for online businesses looking to avoid card fees and broaden access. Customers pay directly from their bank accounts with real-time confirmation. No card details are needed, improving trust and conversions.

Ozow is secure with encryption and two-factor authentication, and integrates easily with websites, apps, and online checkout pages.

Key takeaways:

• Card-free payments are ideal for a wider customer reach.
• Real-time payment confirmation.
• Strong authentication and encryption.
• Easy integration for online checkouts.

5. Zapper

Zapper makes eCommerce transactions quick with QR code payments. Customers scan a code, pay, and checkout without fuss. Loyalty tools, vouchers, and data insights help merchants engage shoppers.

PCI DSS compliance and encrypted payments secure the process. Online businesses can add Zapper to their checkout pages or POS systems for extra flexibility.

Key takeaways:

• QR code payments simplify checkout.
• Loyalty and vouchers boost customer engagement.
• Secure and PCI compliant.
• Flexible integrations for eCommerce and POS.

[Read Next: Introducing Zapper to enhance customer experience & drive loyalty.]

6. SnapScan

SnapScan offers QR code payments that fit both in-store and online commerce. Customers pay through the SnapScan app, making checkout frictionless. Merchants benefit from in-app loyalty, vouchers, and easy reporting.

Regulated by South African banking standards, transactions are safe. Integration options include eCommerce sites, mobile apps, and POS systems, supporting omni-channel businesses.

Key takeaways:

• Quick, app-based QR payments.
• Loyalty and voucher tools are built in.
• Secure and banking-standard compliant.
• Works across online and physical channels.

7. Mobicred

Mobicred is a revolving credit facility that enables eCommerce customers to “shop now, pay later.” This helps merchants increase basket size and boost conversions. Features include instant credit checks, flexible repayment terms, and customer account dashboards.

Security comes through regulated credit checks and authentication. Many local online stores already integrate Mobicred, making adoption straightforward.

Key takeaways:

• Encourages higher cart values.
• Flexible repayment boosts sales.
• Secure with regulated checks.
• Widely accepted by South African online merchants.

8. Payflex

Payflex is a BNPL gateway that lets shoppers split payments into four interest-free instalments. eCommerce merchants benefit from improved conversions and reduced abandoned carts. Customers get instant approvals and an easy repayment plan.

Transactions are secured with PCI compliance and fraud checks. Payflex integrates with Shopify, WooCommerce, and Magento, making it easy for online sellers to manage their payments.

Key takeaways:

• Boosts conversions with BNPL.
• Customer-friendly instalment plans.
• Secure and fraud-checked.
• Strong integrations with eCommerce platforms.

9. PayJustNow

PayJustNow also focuses on BNPL, offering three equal, interest-free instalments. For eCommerce businesses, this attracts budget-conscious shoppers and increases sales. Features like real-time approvals keep the checkout smooth.

Transactions are encrypted and banking-grade secure. With plug-ins for popular platforms, PayJustNow is easy to integrate into an online store’s checkout.

Key takeaways:

• The BNPL option increases sales.
• Real-time approvals speed checkout.
• Encrypted and secure transactions.
• Easy eCommerce integration.

[Read Next: How BNPL can boost your business.]

10. Peach Payments

Peach Payments supports a wide range of methods, including cards, EFT, BNPL, and mobile wallets, making it ideal for diverse online stores. Features like recurring billing, fraud detection, and advanced analytics help merchants scale.

It’s PCI compliant and uses 3D Secure. With strong integrations into Shopify, WooCommerce, Magento, and custom APIs, it suits businesses of all sizes.

Key takeaways:

• Wide variety of payment options.
• Useful for scaling and analytics.
• Secure with 3D Secure and PCI compliance.
• Works with all major eCommerce platforms.

11. PayGenius

PayGenius is designed for South African businesses needing flexible online payment solutions. It supports cards, EFT, and vouchers, helping merchants reach different customers. Features include subscription billing and detailed reporting to manage online revenue.

PCI compliance and secure encryption protect transactions. It integrates with eCommerce platforms and mobile apps, offering a versatile solution.

Key takeaways:

• Supports cards, EFT, and vouchers.
• Subscription billing fits recurring sales.
• Secure and PCI compliant.
• Works across websites and apps.

12. Stitch Express

Stitch Express provides a modern gateway tailored for online merchants. It supports local and international cards, Apple Pay, Google Pay, Capitec Pay, and BNPL (“Happy Pay”). Features include instant approvals, flexible payout options, and analytics dashboards.

PCI DSS Level 1 and 3D Secure ensure security. Merchants can integrate Stitch Express with Shopify, WooCommerce, Webflow, and Squarespace.

Key takeaways:

• Supports a wide range of payment methods, including BNPL.
• Flexible payout options: standard or instant.
• PCI DSS and 3D Secure protect transactions.
• Integrates with major eCommerce platforms.

Does it offer your small business payment options, such as automatic recurring payments? 

If your business accepts recurring payments, like subscriptions, you’ll want to look out for a system that will save your customers’ payment details, automatically allowing you to charge them on a routine basis.  

While many gateways do have this feature, you’ll be required to have an online merchant account in nearly every case.

Does the payment gateway offer hosted or non-hosted payments? 

Making your customer’s payment journey as seamless and quick as possible means you’ll need to consider using hosted or non-hosted payment pages.   

While both have benefits and disadvantages, do your research to see which ones work more successfully with your chosen payment gateway. 

Benefits of using the best payment gateways for small businesses

Using online payment gateways for your business offers several benefits that you should be aware of before choosing which one to use. These include the following:

• Customer convenience: Offering the best payment system for small businesses provides your customers with an unmatched level of comfort, allowing payments to be made around the clock and from any location.
• Improved purchase speeds: A payment gateway removes many barriers between choosing an item and making payment for it, increasing the likelihood of customers completing a purchase.
• Access to broader markets: As it’s easier to set up an online version of your brick-and-mortar storefront when using a payment gateway, your business can reach more comprehensive, more global markets.
• A user-friendly experience: Payment gateways are designed by experts in the field, ensuring a secure payment solution and providing your customers with a more enjoyable user experience.
• Increased transaction speeds: An online payment gateway can store customer details. This means they won’t have to manually input their details every time, making the shopping experience faster and simpler.
• Enhanced security: Your online payment gateway features numerous built-in security measures, such as encryption, 3D Secure, and PCI DSS compliance, providing you with peace of mind and ensuring compliance with relevant security standards.

Payment gateway limitations

It’s impossible to have the good without the bad, and when it comes to payment gateways, some limitations can be considered drawbacks. However, instead of a make-or-break situation, understanding and accepting these limitations is part of the game.

Here are the most significant limitations to be aware of:

• A gateway rarely accepts all types of cards or payments. As much as companies want to advertise the universality of their gateways, they seldom highlight which payments or cards they don’t accept. If you have a specific payment method you would like to offer, please ask before signing up.
• International customers may sometimes only have one payment option. You’ll need to be 100% certain that your payment gateway can work with various stores and payment platforms, especially if you’re considering international payments.
• There is always the possibility of security flaws. With the evolution of the digital world, security concerns are unavoidable. And while a high-quality payment gateway should be secure, data breaches, mobile payment issues, and malware threats can happen.

What is payment gateway stacking, and is it worth it?

Payment gateway stacking works by employing more than one eCommerce gateway platform, maximising the number of options your customers have for their purchases.

If you’re ready to level up your payment gateway game, then your business should definitely look at stacking payment gateways. This is an effective tool to use in an effort to eliminate the effects of any gateway limitations, and it’s a simple process to boot.

Here are some of the most prominent benefits of payment gateway stacking:

• Higher conversion rates: Giving customers more payment choices reduces abandoned carts. If one gateway fails, another option is available.
• Lower transaction costs: You can route payments through the gateway with the best fees for that method.
• Better reliability: If one provider experiences downtime, transactions can still be processed via another gateway.
• Broader payment acceptance: Different gateways excel at various methods (cards, EFT, QR, BNPL), so stacking allows you to cover a wider range of customer preferences.
• Scalability for growth: As your business expands, multiple gateways ensure you can handle higher volumes without bottlenecks.
• Reduced fraud risk: Some gateways offer stronger fraud prevention tools for specific methods, providing you with layered protection.
• Improved customer trust: Offering familiar local payment methods through multiple gateways makes your store more credible and trustworthy.

Customers who do not use or have a credit card appreciate the option of using alternative payment methods when shopping, such as SnapScan, Zapper, prepaid vouchers, Apple Pay, Samsung Pay, or direct EFT.

Ultimately, it’s your job to accommodate your customers, and using gateway stacking is an excellent way of doing so.

Payment trends to watch in South Africa (2026/2027)

The way South Africans pay is changing fast, and the next couple of years will see that pace accelerate. Cash is on the decline, while digital, instant, and flexible payment methods are becoming the norm.

Digital wallets and contactless payments, such as tap-to-pay and QR codes, will continue to grow as consumers seek quick and convenient ways to pay.

PayShap will play a central role, with features such as Request to Pay and Pay by Proxy making real-time bank transfers more practical for both businesses and customers.

We’ll also see more omnichannel payment options, with retailers offering seamless experiences across online, app, and in-store purchases. Buy Now, Pay Later (BNPL) will continue to attract younger shoppers and boost sales, while instant EFT solutions give customers a fast, card-free way to pay online.

Finally, as more South African businesses trade globally, demand for simpler cross-border payment platforms will rise.

Frequently asked questions

 Which is the cheapest online payment gateway in South Africa?

The cheap payment gateway option depends on your transaction volumes and business model. Providers like PayFast and Stitch Express offer competitive pricing with low entry barriers, while Netcash provides transparent, flat-rate fees that are cost-effective for scaling businesses. Always compare set-up fees, monthly charges, and per-transaction rates to find the best fit.

What are the regulatory requirements for payment gateways in South Africa?

Payment gateways must comply with the Payments Association of South Africa (PASA) and operate within the framework of the National Payment System Act. They are also required to follow PCI DSS standards to ensure cardholder data is protected. Merchants must partner with licensed, compliant, and trusted gateways that are approved by South African banks.

How can I effectively compare payment gateways?

Look at transaction fees, settlement times, integration options, and customer support. Consider whether the gateway supports multiple payment methods, such as cards, EFTs, digital wallets, and PayShap. Suitability often depends on whether you run an eCommerce store, subscription service, or brick-and-mortar business.

What is a 2D payment gateway, and is it a secure option?

A 2D payment gateway enables payments using just card details, eliminating the need for two-factor authentication (such as OTPs). While faster, it’s more vulnerable to fraud compared to 3D Secure gateways, which add an extra verification layer.

For South African merchants, selecting a 3D Secure-compliant gateway is highly recommended to minimize fraud and comply with regulatory requirements.

Can your chosen payment gateway integrate with existing technology?

It’s vital that before you decide on a payment gateway, you consider how smoothly its API (Application Programming Interface) will integrate into the current technology platforms you use.

If you choose wrong, you’ll be stuck with a gateway that complicates and slows down your payment process. Find a payment gateway that is customisable and can easily be integrated.

Are international payments possible through the payment gateway?

If you accept international payments or plan to at some stage, ensure that your chosen payment gateway offers international and/or multi-currency payments. Additionally, ensure that it provides an interface with multiple languages.

Most South African payment gateways can accept 3D secure debit and credit cards from almost anywhere in the world, and will settle your account in Rands from the foreign currency.

Aside from the above, check if any additional fees are tied to accepting multi-currency payments from other countries and whether you’ll need a merchant account in a specific country.

Does it offer your small business payment options, such as automatic recurring payments?

Suppose your business accepts recurring payments, such as subscriptions. In that case, you’ll want to look for a system that saves your customers’ payment details, automatically allowing you to charge them on a routine basis. While many gateways do have this feature, you’ll be required to have an online merchant account in nearly every case.

Does the payment gateway offer hosted or non-hosted payments?

Making your customers’ payment journey as seamless and quick as possible means you’ll need to consider using hosted or non-hosted payment pages. While both have benefits and disadvantages, conduct thorough research to determine which ones work more effectively with your chosen payment gateway.

What are the payment gateway fees?

Pinpointing the exact cost of running any business is a daunting challenge, and your bottom line will sometimes hang on the thinnest of hinges. Compare the fees various payment gateways charge to get the best value for money.

Cutting unnecessary costs by opting for a lower-cost payment gateway allows you to allocate more resources to additional security measures and fraud detection.

How much can you spend on a payment gateway?

After evaluating which payment gateways offer the best value, remember to closely monitor your budget and the gateway’s fee structure. Some costs are hidden, and you must focus on the total operating expenses. This includes set-up costs, transaction costs, and admin fees.

These apply to both the gateway itself and your merchant account. If you only take a relatively low payment volume, you should avoid monthly fees and high setup costs.

How secure are their encryptions?

Another crucial consideration when choosing your payment gateway is ensuring that its encryption systems are secure. You should aim to settle on a gateway that works with PCI-compliant companies and adheres to the Payment Card Industry Data Security Standard (PCI DSS). Double-check that the gateway maintains PCI compliance, as these standards are there to protect customer data and payment information.

Is the payment gateway’s reputation good or bad?

This is a cosmetic consideration, but you’ll have to choose a payment gateway that your customers and other businesses trust. If a payment gateway has a less-than-favourable security history leading to cart abandonment, it’s best to stay away.

In this case, it’s best to stick to larger, more popular payment gateways such as Netcash, Payfast, Peach Payments, and other reputable providers. Brand recognition works to your benefit here and will highlight your commitment to customer security.

Does the payment gateway come with a solid support system?

Being exposed to an enjoyable customer experience is a crucial part of any buyer’s journey, and if it’s not pleasant, it can have disastrous consequences. Ensure that your chosen payment gateway provides support when you need it and in a manner that is convenient for you.

Consider factors such as the range of support, responsiveness, the location of customer support, working hours, and whether you will incur additional fees for assistance.

How flexible is your merchant account?

Considering the diverse range of shoppers and the numerous payment options available to small businesses, maintaining flexibility is a top priority. This is especially true when choosing a payment gateway.

This flexibility extends to various payment methods, including credit cards such as Mastercard or Visa, as well as mobile payment platforms on Android and iOS. Being able to switch between them can make item purchases easier, as modern-day customers value their time above all

Closing thoughts on SA payment gateways

Payment gateways are the backbone of South Africa’s growing digital economy. They do more than process payments. They build trust, protect sensitive data, and keep your business running smoothly. Choosing the right gateway is not just a technical decision; it’s a strategic one that can shape your customer experience and bottom line.

With this guide, you now have the insights to make an informed choice. The next step is simple: sign up with Netcash Payment Gateway. From fast, secure transactions to seamless integration, we’ll handle the payments while you focus on growing your business.