South African Payment Gateway for Your E-Commerce Store
A lot of businesses like, retail stores, grocery stores, bakeries are moving online, and customers are getting more comfortable shopping online than travelling to the physical stores. Physical stores require travelling, which includes traffic, waiting in line, safety risks, but shopping online is much easier, your orders are delivered right at your door.
The most important thing about choosing a payment gateway for your e-commerce store, is security and integration.
Online stores are prone to attacks by hackers. All transactions consist sensitive information that belongs to the customer, you need to find out how to secure you’re the connection between your website and the service provider. You also need to make sure that are payment gateway requirements are fulfilled before any integration. You have to make sure that your e-commerce website is compatible with your payment gateway. In South Africa we have a couple of payment gateways that can suit your website.
Before viewing the payment gateways, let’s look at question you need to ask yourself before choosing one for your own e-commerce store:
1. Is it a Modern Payment Gateway?
When compared to classic gateways, modern payment gateways are much easier to set up.
2. Can You Integrate the Payment Gateway into Your Store?
Many payment gateways take clients away from your site to make payments, which can lose you sales.
3. What Is the Pricing Structure Like?
You definitely don’t want to have to pay a monthly subscription fee for the use of a payment gateway.
Best payment gateways to use in South Africa
Are you an e-commerce startup? Are you looking for a quick payment option that doesn’t require a long process to create? PayFast is the way to go. It does not need an internet merchant account. As soon as you set it up, you can start receiving payments from banks. It also has a wide variety of app and platform integration tools. You can request for payment directly through email from the PayFast PLATFORM.
PayGate is an old South African payment gateway that was initially meant to serve the needs of big e-commerce industry players. You needed to have a merchant account in order to enlist the services of PayGate. However, through the introduction of PayCollect, a sub-system of PayGate, small startups have been able to acquire their services. Small startups do not need an internet merchant account with PayCollect.
This is another of South Africa’s most popular payment gateways. The unique attribute of this gateway is that it offers a range or e-commerce payment services such as global credit card payments, recurring billing and manual payment processing for mail orders. It also has an additional mobile platform with fraud prevention capabilities.
This is a recently introduced gateway. However, it is not to be undermined. iPay is a fast payment processing platforms that also support mobile platforms. Companies that want to make payments directly from their invoices are seeking it. The most outstanding feature of iPay is faster transaction processing. In addition, the charges are relatively low compared to other payment gateways in South Africa.
PayU boasts of a soaring 1500 e-commerce websites that form their customer base. It has over 25 payment methods, which is quite a lot. It is the largest payment gateway in South Africa with an annual transaction volume of R9billion. It supports payment to and from all South African banks. Additionally, it also accepts Visa and MasterCard
This is more of a packaged payment option. If you are already conversant with Sage online tools like Sage 1, Sage X3 and Sage Live, then Sage Pay should be no stranger. It offers a bundled approach for e-commerce websites. If you want to encapsulate all the services you require, so that they come from one specific vendor, Sage Pay would be the way to go.
This is another of the most recent payment gateways. The main advantage of Peach is that they have a very easy to use the platform, which is an added advantage to the operability of your website. The only downside is that they require internet merchant accounts for any business to use.
Undoubtedly the world’s most common payment gateway, PayPal support payments all over the internet. Be it local or international payments, PayPal will effectively handle the transaction. It is accessible by e-commerce stores in South Africa. It has no monthly charges and has a fairly low transaction charge.
You have a couple of payment gateways to choose from, but firstly you need to base your decision on the following factors:
- Is the payment gateway easy to use?
- How much will you pay?
- Does it support mobile devices?
- Is it a safe payment gateway?
- Is it accessible to people in South Africa?
Gosa, T. (2019). http://www.bwd.co.za/blog/which-payment-gateway-is-best-for-your-e-commerce-store/. [Blog] bwd Blog.
http://blog.i-pay.co.za/how-to-choose-the-best-payment-gateway-south-africa-05042017/. (2017). [Blog].