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It can be very challenging and difficult to find the best payment processor for webshops that provide e-commerce services to customers in South Africa and in Africa as a whole.
In this article, we will be comparing the 4 biggest payment processors in South Africa and help guide you on which one to choose.
Yoco
Yoco defines itself as an African technology company founded in South Africa and strives to make payments simpler for African businesses to get paid by their customers.
Yoco offers an online payment gateway for websites running on either custom scripts, WordPress (WooCommerce) or other CMS like WIX.com or Shopstar.
Like other payment gateways mentioned in this article, Yoco earns money by charging a small transaction fee ranging from 2.6% to 2.95% with fees lowering as you get more transactions.
Yoco settles payments received by merchants online in 2 days to their bank accounts.
Paystack
Paystack is a technology company solving payment problems for ambitious businesses. Its mission is to help businesses in Africa become profitable, envied, and loved.
Paystack offers an online payment gateway for websites running on either custom scripts, WordPress (WooCommerce) or other CMS like Magento, BigCommerce, Shopify, and WIX.com to name a few.
Paystack only charges a tiny fee (2.9% + ZAR 1) per successful transaction, which means they literally only make money when you do, and they work hard to ensure every transaction succeeds.
Receive your money automatically in your bank account within 3 days after payment is made. They settle merchants before 10 AM, every morning.
Flutterwave
Flutterwave is the largest payment processor in Nigeria if not in Africa as a whole. They provide payment services among others from small to large businesses.
Flutterwave offers an online payment gateway for websites running on either custom scripts, WordPress (WooCommerce) or other CMS and platforms like QuickBooks, Zoho, Shopify, and Squarespace to name a few.
Flutterwave only charges a tiny fee (2.9% for local and 3.8% for international) for successful transactions, which means they only make money when you do, and they work hard to ensure every transaction succeeds.
Receive your money automatically in your bank account within 24 hours after payment is made. They settle merchants every afternoon.
PayFast
PayFast was founded in 2007 with the vision of helping online merchants (businesses, individuals and causes) grow their businesses. It is one of South Africa’s biggest payment processors.
PayFast integrates with 80+ platforms to ensure that no matter what platform you use you can get paid instantly and securely online. Like WordPress (WooCommerce) or other CMS and platforms like PrestaShop, Xero, Shopify, and WHMCS to name a few.
PayFast charges fees that are way above any of the products mentioned above with fees ranging from 3.5% to 5.5% for successful transactions. They also charge a payout fee of R8.70 per payout which the other platforms do not and also charge an R2.00 refund fee (excluding VAT) per refund.
To receive your money in your bank account you have to do the manual task of requesting a payout in your bank account which will depend on how long after payment is made.
Conclusion
While most of these processors have their strengths and advantages it is important to note that for most businesses payout speed, lower fees and excellent customer support are what merchants always consider above all.
With all factors considered both Yoco & Paystack are tied for 1st position with Flutterwave shortly following and PayFast falling at last position.
Reasoning
Yoco and Paystack both have low fees and excellent customer support and reasonable payout times. While Fluterwave may offer te fastest payout times it must be noted that their support services are terrible as rated by merchants and with queries on queue up to 5 days for some complainants. PayFast has the highest rates in the industry with exorbitant fees that are not competitive and also not being able to automate payouts for busy businesses.
