Payment Gateways in South Africa Compared
Pick the right one for your store
Choosing the right payment gateway affects your checkout conversion, fees, settlement timing and technical complexity. The main local options are PayFast, Ozow, PayGate, Peach Payments and PayU. Each has different pricing, supported payment methods and integration approaches, so your choice should match transaction volume, technical resources and which payment methods your customers prefer.
| Gateway | Common methods supported | Typical fee signal | Who it suits |
|---|---|---|---|
| PayFast | Card, EFT, SnapScan, Zapper and mobile wallets | Pay-as-you-go - percentage per transaction; many plans do not require setup fees | Small to medium online stores that need a simple setup and familiar local payment methods. |
| Ozow | Instant EFT (bank-to-bank payments) | Indicative ~1.5% per transaction; usually no monthly fee on standard plans | Businesses that want fast EFT confirmation and broad bank coverage for local customers. |
| PayGate | Card payments, EFT and local wallet options | Variable - merchant account and gateway models; pricing often negotiable for higher volumes | Medium to larger merchants that need established acquiring relationships and enterprise support. |
| Peach Payments | Card payments, alternative methods and advanced payment orchestration | Growth plans often include a monthly fee plus per-transaction processing rates | Growing merchants and platforms needing orchestration, routing and developer-friendly tools. |
| PayU | Card processing, local payment methods and multi-market support | Enterprise and tailored plans with negotiated rates | Larger e-commerce players and companies selling regionally or across borders. |
Note: Fees and features change. Use this comparison as a quick reference. For a detailed cost comparison based on your monthly volume and average order value contact us and we will run the numbers.
Gateway deep dives
PayFast, straightforward, popular with local SMEs:
PayFast is widely used by small and medium South African merchants because it is easy to set up, supports local payment options and has a simple pricing model for many merchants. PayFast supports credit and debit cards, instant EFT via several methods, and popular mobile payment options such as SnapScan and Zapper. PayFast offers both aggregation (start without merchant accounts) and gateway solutions for larger merchants.
- Quick setup for smaller merchants
- Local payment options that customers recognise
- No complicated monthly fees for many standard plans
- Larger merchants may need a gateway account with custom pricing
- Settlement timing depends on account type and bank processing
Small to medium businesses wanting a quick local checkout with recognised local options.
Ozow, instant EFT specialist:
Ozow focuses on instant EFT, customers pay directly from their bank and the payment settles quickly with a verified confirmation. Ozow is used when merchants want EFT coverage without the friction of manual confirmation. Ozow markets itself with simple percentage pricing and no monthly subscription for standard plans.
- Instant bank confirmations improve checkout conversion for EFT users
- Transparent pricing and no monthly subscription for standard use
- Good for merchants with many bank-transfer customers
- If your customer base prefers card payments you still need a card-enabled gateway too
- Some reconciling rules differ by institution
Stores with many customers who prefer to pay by bank transfer or for businesses wanting a low-friction EFT option.
PayGate, long-established acquiring and gateway services:
PayGate is a long standing gateway solution with PayWeb integrations for platforms such as WooCommerce. It is often used by merchants needing a traditional payments stack and negotiable fee structures for higher volumes. Documentation shows standard gateway setups and plugins for common platforms.
- Established provider with broad payment method support
- Suitable for merchants requiring an acquiring relationship and gateway features
- Pricing and setup can be more complex than simple aggregator options
- May require formal merchant account setup
Medium to larger merchants who want robust acquiring features and enterprise support.
Peach Payments, payment orchestration and developer friendly:
Peach Payments positions itself as a payments orchestration provider with flexible tooling for developers, and plans that scale from growth to enterprise tiers. It offers card processing, alternative payments and advanced features such as split payments and webhooks, which suit marketplaces and platforms. Peach lists plan tiers and processing rates on its site.
- Developer friendly APIs and orchestration tools
- Good for platform businesses and marketplaces
- Clear growth plans for scaling merchants
- Growth plans include a monthly fee which may not suit very small sellers
- Enterprise pricing is custom
Marketplaces, platforms and growing e-commerce businesses that need orchestration, routing and advanced integrations.
PayU, multi-market and enterprise options:
PayU operates across many markets and offers solutions for medium to large merchants with multi-market needs. PayU tends to provide tailored packages and acquiring relationships that help high-volume sellers or those expanding across borders.
- Multi-market support and enterprise features
- Robust API and payment method coverage
- Custom pricing and onboarding timeline for larger merchants
- Not always the simplest option for a small retail site
Established merchants planning regional expansion or needing enterprise grade support.
A note on Stripe:
Stripe is a leading global payments platform. Historically Stripe has not been directly supported in South Africa the same way as in other countries, which means South African businesses commonly use local providers or third party arrangements to access some Stripe services. Always check Stripe’s global availability page and local integrations if you want Stripe features in South Africa.
Fees, settlement and chargebacks, what to expect?
Fees:
Gateways typically charge a percentage of the transaction plus a small fixed amount, or a minimum fee per transaction. Some providers have no monthly fees for basic plans. High volume merchants can often negotiate better rates. Always check whether fees are exclusive of VAT and whether international cards attract higher rates.
Settlement times:
Settlement can be immediate for some instant EFT methods or next business day for card transactions. Settlement schedules vary by provider, account type and bank. Check whether refunds, reversals or chargebacks affect settlement timing.
Chargebacks and disputes:
Chargebacks are a cost of card acceptance. Providers outline dispute processes. Factor in potential chargeback fees and the operational effort needed to handle disputes.
Integration notes and platform compatibility:
WooCommerce:
Most South African gateways offer plugins or documented integrations with WooCommerce. For example, PayGate offers PayWeb plugins and PayFast has clear guides on integration and checkout options. Test sandbox environments before going live.
Shopify and hosted stores:
Shopify supports some gateways via hosted integrations or external payment gateways. Check which gateways are supported natively and whether you need a third party connector.
Custom builds:
If you run a custom site, choose a gateway with a stable API, good SDKs and clear webhooks for order status updates. Peach Payments and PayU provide developer oriented tools for advanced setups.
Security and compliance:
All gateways that operate legally in South Africa will enforce PCI compliance or offer hosted checkout pages that reduce your PCI scope. For card storage or recurring billing, make sure your gateway supports tokenisation so you do not store card data on your own servers. Ask about fraud prevention tools, 3D Secure and chargeback prevention features.
Which gateway should you choose?
Start with a simple aggregator such as PayFast. It is quick to set up and supports local methods customers recognise.
Add Ozow for instant EFT or use it as the primary EFT option to reduce payment confirmation friction.
Consider Peach Payments for orchestration or PayU for broader enterprise needs. These providers handle complexity and scaling.
Use PayGate or contact major acquirers for gateway plus merchant account packages.
Investigate international solutions carefully, and check whether Stripe features can be accessed via third party services or regional partners.
A practical checklist before you sign up with a payment gateway:
- Check which payment methods your customers actually use.
- Compare total cost of ownership not just headline rates. Include gateway fees, monthly fees, transaction fees, settlement hold times and chargeback costs.
- Verify sandbox access and test full checkout flows, refunds and webhook events.
- Ask about dispute and chargeback support.
- Confirm integration support for your platform (WooCommerce, Shopify, custom).
- Ask for references from similar sized merchants.
Example merchant setup suggestions:
PayFast + PayFast card processing. Quick to implement and local UX.
- PayFast for cards + Ozow for instant EFT. This combination covers most local payment preferences.
Peach Payments or PayU for orchestration, split payments and multi-market readiness.
Payment setup is both technical and commercial. The cheapest gateway on paper may not be cheapest in practice depending on refunds, chargebacks and integration efforts. Choose the gateway that balances price, conversion and operational support for your specific business.
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