Online shopping statistics South African businesses should know
November 7, 2025
Comparing the top online payment methods in South Africa
November 21, 2025Thinking of starting an eCommerce business? Perhaps you’re already operating one but looking for ways to increase sales, boost conversions, and achieve a smooth checkout experience.
Don’t look any further. Today’s post is a deep dive into the top online payment methods in South Africa. Find out how you can leverage insights and information so that you can offer customers the right payment method.
Not only that, but considering the benefits and which method is the right choice for your online business can help you in many ways. This ranges from enhanced safety and customer satisfaction to increased revenue.
No matter your needs, choosing either one of the online payment methods below can bring you one step closer to growth and success.
Find your perfect payment match.
Discover the best option for your business now.
Current online payment landscape in SA
Which payment methods are South African’s trusting and using the most to complete online purchases? That’s exactly what we aim to answer by looking at the country’s current online payment landscape.
Here’s what you should know:
- Contactless payments are on the rise: More and more South Africans are preferring to pay digitally. This trend is undeniably upward with significant growth in volume and value. Recent surveys show that a high percentage of the population has access to and regularly use contactless cards, with some even preferring to shop at businesses that accept them.
- While BNPL options are popular, concerns about regulation arise: Like many other countries, Buy Now Pay Later solutions have become popular, growing at 64% annually between 2019 and 2022 in South Africa. This is expected to grow through the years, with a recent consumer survey by Stitch revealing that over half of South Africans have used BNPL services for eCommerce purchases.
- Mobile money is not quite there yet: The growth of mobile accounts is relatively low compared to other African markets like Kenya or Ghana. This slow adoption could be due to strict regulations or that bank account usage is much higher, making mobile wallet accounts less appealing. Regardless, there has been a rise in popularity for MTN MoMo, especially among lower-income consumers, reaching more than 8 million users as of July 2023.
- Digital wallets and QR codes are widely accepted: e-Commerce and in-person merchants are starting to accept options like SnapScan, Zapper, and Masterpass more readily. A big driver of the QR code payment adoption in SA was the COVID-19 pandemic.
- Cryptocurrency payments are slowly catching up: While still niche, this payment option allows merchants to accept Bitcoin and other digital currencies via gateways like Luno or VALR. According to Business Insider Africa, a crypto payment platform, Luno Pay, reported that 31,000 retailers in the country accepted cryptocurrency last year.
Most popular online payment options
Now with some background out of the way, it’s time to compare the most popular payment methods used in South Africa.
|
Payment method |
Transaction fees (merchant-facing) |
Features |
Examples |
|
Visa (Credit/Debit) |
~1.5% to 3% on average |
-Widely accepted -Strong fraud protection -Settlement within 1-3 business days |
-Standard Bank Visa Debit -FNB Visa Credit -Capitec Visa Debit |
|
Mastercard (Credit/Debit) |
~1.5% and 3.5% on average |
-Similar global acceptance as Visa -Supports local and cross-border payments -Mastercard SecureCode for fraud prevention -Chargeback protection rules similar to Visa |
-Nedbank Gold Mastercard -ABSA Mastercard Platinum -Discovery Bank Mastercard Debit |
|
EFT / Bank Transfers |
~2% + flat fee using a 3rd-party provider like Payfast and Yoco. And R1 - R10 for bank-to-bank EFT |
-Low-cost payment option for merchants (often flat fee or free) -Settlements take 1–2 business days unless using instant EFT -Requires the customer to pay using banking details manually |
-Standard Bank online banking -FNB EFT -Nedbank Money app transfers |
|
Instant EFT (Ozow) |
1.5% per transaction or a minimum of R1 (Ozow), 2% plus a minimum of R2.00 for Instant EFT (PayFast) |
-Real-time payment confirmation to the merchant -Integrates directly with SA banks for faster checkout -No card needed, just online banking credentials -Irreversible payments (no chargebacks) |
-Ozow Instant EFT -PayFast Instant EFT |
|
E-wallets |
3.5% + fixed fee of around R2.00 for PayFast + Snapscan + Masterpass
3.2% + R2 for store card-type e-wallets
Fees differ among banks |
-Works with linked bank cards -Faster checkout (tap-to-pay or click-to-pay online) -Supports biometric authentication (Face/Touch ID) -Appeals to mobile-first customers |
-Apple Pay -Google Pay -Samsung Pay |
|
Prepaid cards/vouchers |
1.5% to 3.5% for Mastercard + Visa
2% international transaction fee
Vouchers range from R90 to R290 |
-Customer pays in cash at the retail store and redeems the code online -Reduces the need for a bank account or card -Popular for unbanked or security-conscious shoppers |
-Shoprite Money Market vouchers -OTT Voucher -1ForYou Voucher |
|
Buy Now, Pay Later (BNPL) |
2.5% – 4% (merchants bear the fee) |
-Customer splits payment into installments, often interest-free -Merchant gets the full amount upfront (minus the fee) -Increases average order value & conversions -Provider takes on credit risk |
-PayJustNow -MoreTyme (TymeBank) -Float (via Peach Payments) |
|
QR code payments |
2.95% (excl. VAT) per transaction for SnapScan
3.5% plus R2.00 for Zapper
3.5% plus R2.00 for PayFast |
-Customer scans QR with banking app or payment app -Works in-store and online -Settlement in 1–2 days (some providers same-day) -No special hardware required |
-SnapScan -Zapper -PayFast QR (Masterpass-powered) |
|
PayShap |
-Real-time bank-to-bank transfers using a cellphone number/ShapID or an account number. -Available 24/7, even after hours -No card networks involved -Suited for small-value, instant payments |
-FNB PayShap -Capitec PayShap -Nedbank ShapID |
|
|
Masterpass |
3.5% + R 2.00 (via PayFast integration) ~2.95% + R1.50 (via Peach Payments) |
Digital wallet from Mastercard stores card details securely. Customers pay by scanning the QR code or clicking the checkout button. Works across multiple banks and apps. Secure, tokenised transactions |
-Masterpass app (standalone) -Integrated into SnapScan, Zapper, and banking apps |
Pro tip: Netcash payment gateway can facilitate the above online payment options, making it an all-in-one solution for your business.
Start unlocking growth today.
Speak to one of our Payments Advisors and discover the best option for your business.
Other types of payment methods worth mentioning
- Mobicred: Credit facility allowing online shoppers to pay in instalments.
- Payflex: Buy Now, Pay Later service with interest-free instalments.
- PayJustNow: Another BNPL provider gaining rapid market share.
- OTT Voucher: Prepaid voucher system for online payments, key for unbanked consumers.
- 1Voucher: Prepaid online payment voucher used across multiple platforms.
- Cryptocurrency (via Luno, VALR, PayFast Crypto): A niche but growing payment method for tech-savvy shoppers.
Payment method breakdown
Here’s a glance at the usage percentage of top online payment options in South Africa:
- Card 43%
- Cash 9%
- Bank transfer 22%
- E-wallet 20%
- Other 6%
Benefits of each method of payment
Need more convincing about which online payment method is best for you? Have a look at some of the main benefits to see which one aligns best with your needs.
1. Credit/debit cards
- Offers extensive fraud protection and security mechanisms such as 3D Secure/OTP
- They provide a seamless, easy experience for customers
- Has global reach
- Easy integration with payment gateways
- Highly trusted among consumers
- Offers rewards and points
2. EFT / bank transfers
- No chargebacks once funds are cleared
- Low transaction costs
- No third-party payment processor needed
- Suitable for high-value payments
- Accessible to customers without cards
3. Instant EFT (e.g., Ozow)
- No need for cards (banking credentials work)
- Immediate payment confirmation
- Supports multiple banks for a wider customer reach
- Reduces cart abandonments with quick checkout
- Lower fraud risk
4. E-Wallets
- Contactless payment that’s safe and convenient
- Fast checkout with stored card details
- Ideal for mobile-first shoppers
- Strong security with encryption
- Supports online and in-app purchases
5. Prepaid cards / vouchers
- Caters to unbanked customers
- Encourages upfront payment
- No risk of chargebacks
- Simple redemption process in-store and online
- Drives foot traffic for retail stores
6. Buy Now, Pay Later (BNPL)
- Boosts conversion rates by reducing upfront costs for customers
- Increases average order value
- No credit risks for merchants
- The merchant gets full payment up front
- Appeals to budget-conscious shoppers
7. QR code payments
- Fast and easy setup
- Supports multiple payment sources
- Flexible for both in-store and online
- Instant settlement to the merchant account
- Contactless and hygienic
8. PayShap
- Works 24/7
- Instant settlement to the merchant account
- Low flat transaction fees
- No card or POS device needed
- Simple payment experience via phone or account number
9. Masterpass
- Supports QR-code payments
- Stores card details securely
- Strong security with tokenisation
- Works across multiple banks and wallets
- Reduces checkout friction by eliminating manual card details entry
Give your customers the freedom to pay the way they want
— with one secure, reliable gateway.
Choosing the right option
There are a few things you should keep in mind when choosing online payment methods for your online business. Choosing the wrong one could frustrate customers, increase cart abandonment, drive potential customers away, and cost you money.
Here are some factors to consider to ensure the right payment options for smooth checkout experiences, smiling customers, and increased sales:
1. Offer a variety of payment options
Don’t just settle for two or three options; opt for a mixed bag that can cater to a broader audience. This is where a bit of research comes in. Find out what your customers’ preferred payment methods are.
Are you selling to young adults who are tech-savvy and budget-conscious? Offer them flexible payment methods like BNPL or PayShap. Does your business render services to mature adults who stick with what they trust? Be sure to have Mastercard and Visa available.
2. Go for the option that suits your budget
Start by comparing the setup costs, pre-transaction fees, monthly fees, and hidden charges to establish which payment methods are the most cost-effective for your sales volume.
3. Consider the settlement speed
Check how quickly funds reach your account, depending on how fast you need your cash flow to be. Some options, like PayShap, are instant, while EFTs can take a few business days to settle.
4. Consider integration and user experience
It’s best to choose a payment method that can easily integrate with your website/eCommerce platform and shopping carts. Optimal integrations can help ensure a smooth, mobile-friendly checkout process, which further enhances your customers’ user experience.
5. It should have robust security and fraud protection
If your payment options are not secure, it can lead to financial loss to both you and your customer base, and subsequently a loss of loyal customers too. You have to ensure trust by choosing payment methods that are tightly secured.
Look for security features like PCI DSS compliance, encryption, 3D Secure, and other fraud prevention tools to protect yourself and customers.
6. Ensure the payment method can scale with your business
Scalability is an essential factor to consider, as you’d want the chosen method to handle increasing transaction volumes as your business grows. Look for a payment processor that can support high-volume transactions with the necessary tools and support for scaling up.
Frequently Asked Questions
Final word | the best online payment systems in South Africa
South Africa’s online payment landscape is consistently evolving, becoming more secure, flexible, and readily available. Merchants can significantly benefit from offering contactless payments and QR code methods like Zapper or SnapScan, as well as BNPL options such as PayJustNow and Payflex.
EFT providers like Ozow or E-wallets appeal more to mobile-first shoppers. While prepaid vouchers and PayShap are low-cost and ideal for unbanked consumers. The key is to really look at your customers’ preferences and balance them with security, transaction costs, settlement speed, and scalability.
The best is to offer multiple secure options to boost conversions, enhance customer trust, and ensure smoother checkout experiences.
Luckily, Netcash payment gateway offers top payment processors, so find out which ones would be best for your business today. Contact the Netcash sales team now.
Worried about payroll errors slipping through?
Count on Netcash for accuracy – Our platform minimises mistakes,
ensuring each employee receives the correct amount, every time.
Author:
Candice Sergeant
Product Manager
Stay in Touch
Candice Sergeant is a digital dynamo at Netcash, where she’s on a mission to help South African businesses level up their online game. As an eCommerce Product Owner, she’s got her finger on the pulse of the latest trends and technologies, constantly seeking out ways to boost sales and streamline operations. With a knack for spotting opportunities and a passion for innovation, Candice is your go-to guide for taking your e-commerce business to the next level.
