How South Africans pay online
South Africa's online checkout blends cards (Visa and Mastercard), instant EFT from a bank account, QR, and buy-now-pay-later. Many buyers do not want to type card details, so instant EFT providers like Ozow are popular: the customer picks their bank, logs in, and approves the payment, with no card needed. PayFast is the long-standing gateway that bundles cards, instant EFT, QR, Mobicred, and store cards in one integration. For a cross-border seller, an aggregator is usually the fastest way in, because it handles onboarding, dashboard, and settlement. The key is to offer more than cards so you do not lose buyers who prefer bank-based payment.
- Cards, instant EFT, QR, and BNPL are common online.
- Ozow lets buyers pay from a bank account without a card.
- PayFast bundles cards, instant EFT, QR, and more.
- Offer more than cards to lift conversion.
Ozow instant EFT for merchants
Ozow is a pay-by-bank solution licensed by the Payments Association of South Africa as a systems operator and third-party payment provider. At checkout the customer selects Ozow, picks their bank, logs in, and approves the payment in their banking app, with two-factor authentication. Ozow encrypts credentials end-to-end so even it cannot see them. For merchants, Ozow supports ecommerce, payment links, e-billing, QR, refunds, and payouts, and it markets higher completion rates through Ozow PIN and biometric options. Settlement goes to your merchant account. Ozow is cardless, which is its main difference from a card gateway, so many merchants run it alongside cards to cover both audiences.
- Pay-by-bank with two-factor authentication, no card needed.
- Credentials are encrypted end-to-end.
- Supports ecommerce, links, e-billing, QR, refunds, payouts.
- Usually run alongside cards to cover all buyers.
PayFast for merchants
PayFast (now part of Network International) is a South African payment gateway that lets a business accept credit and cheque cards, instant EFT, Capitec Pay, Samsung Pay, Google Pay, Apple Pay, Mobicred, store cards, SnapScan, Zapper, and more through one integration. It advertises no monthly or setup fees on its aggregation solution, with a small fee per sale, and works with many shopping-cart plugins. Settlement and payout fees apply, and immediate payout carries its own fee. For a merchant, PayFast's appeal is breadth and easy plugins; you turn on methods from the dashboard as you grow. As with any gateway, confirm the rate for each method, because cards, instant EFT, and BNPL are priced differently.
- One integration covers cards, instant EFT, wallets, QR, BNPL.
- No monthly or setup fee on the aggregation plan advertised.
- Works with many shopping-cart plugins.
- Rates differ by method; confirm each one.
Onboarding and settlement
Local South African sellers onboard with business details and a payout bank account; some gateways let individuals start. Cross-border sellers should confirm whether the provider accepts international merchants and how it settles (rand to a local account versus offshore). Onboarding asks for KYC documents, and certain business types are restricted. Settlement timing varies: aggregation plans may net-settle every couple of days, while gateway plans can settle faster through your own bank relationship. Confirm the exact window and any payout fee, because an immediate payout usually costs extra.
- Local sellers need business details and a payout account.
- Cross-border sellers must confirm international merchant support.
- Settlement timing differs by plan and bank relationship.
- Immediate payout usually carries an extra fee.
Fees and what to confirm
South African gateway pricing is a percentage plus a fixed amount per transaction for many methods, with no monthly fee on aggregation plans but payout and refund fees on top. Published rates are a starting point only. Public pricing is only a first filter. Actual pricing changes with country, industry, volume, settlement currency, integration method and contract terms. Confirm against the provider's official pricing page or a written quote before you go live. Ask about the card rate versus instant EFT rate, BNPL or Mobicred rates, settlement and payout fees, refund fees, and whether cross-border or foreign-currency sales change the rate. Also confirm onboarding documents and any business-type restrictions so you are not surprised after launch.
- Percentage plus fixed fee per transaction for many methods.
- No monthly fee on aggregation, but payout and refund fees apply.
- Compare card, instant EFT, and BNPL rates.
- Confirm cross-border support and business-type limits.
Mistakes to avoid
The first mistake is cards-only checkout, which loses buyers who prefer instant EFT. The second is skipping plugin testing on your cart. The third is assuming no monthly fee means no costs; payout and refund fees add up. The fourth is ignoring method-level rates, because BNPL and cards differ. Last, get pricing in writing and read the gateway versus aggregation difference, because it changes settlement and cost.
- Do not run cards-only checkout in South Africa.
- Test your cart plugin before launch.
- Watch payout and refund fees, not just monthly fees.
- Get method-level pricing in writing.
Questions merchants ask
Do I need a local entity to use Ozow or PayFast?
For South African rand settlement you typically need a registered local business and payout account. Cross-border sellers should confirm whether the provider accepts international merchants and how it settles.
What is the difference between Ozow and PayFast?
Ozow is pay-by-bank instant EFT without a card. PayFast is a gateway that bundles cards, instant EFT, wallets, QR, and BNPL. Many merchants run both to cover card and cardless buyers.
How fast do I get paid?
It depends on the plan. Aggregation plans may net-settle every couple of days; gateway plans through your own bank can settle faster. Immediate payout usually costs an extra fee. Confirm the window in writing.
Are there monthly fees?
PayFast advertises no monthly or setup fee on its aggregation solution, but per-transaction, payout, and refund fees apply. Ozow pricing is quote-based. Confirm the full schedule before you commit.
Can I accept international cards?
Yes, both support internationally issued cards where enabled, but cross-border rates are higher. Confirm the exact rate and settlement currency with the provider.