7 simple payment gateways for small businesses

Finding the perfect payment option (without draining your bank account or testing your patience) can be challenging for small businesses. With so many available on the market, sifting through the options can feel like trying to find a needle in a haystack.

When looking for a local payment platform, some key considerations you should take into account include:

• Fees: Search for a payment solution with clear prices and fees. Take the time to find providers with reasonable transaction fees, setup fees, monthly fees, and no hidden costs.

• Integration: Ensure your selection integrates seamlessly with any systems you already have in place, such as your website, ecommerce platform, or point-of-sale (POS) system.

• Payment options: Your payment solution should accept various payment methods, including major credit and debit cards, along with mobile payments like Apple or Google Pay.

To help you start accepting payments, we’ve delved into seven of the most popular local payment platforms and summarised their packages:

• Yoco

• Paystack

• VodaPay

• Payfast

• iKhokha

• SnapScan

• Peach Payments
  

Ready to get paid? Read on!

At a Glance: The Best Payment Platforms in South Africa

Yoco

Founded in 2013, Yoco is one of the best payment solutions in South Africa—in fact, you’ve almost certainly seen one of their distinctive blue card machines around! Here are some of the most popular options they offer:

Card Machines

The pocket-sized Yoco Go card machine offers unmatched versatility, allowing you to use it anytime, anywhere. It easily pairs with your smartphone via Bluetooth, and can be purchased for a one-time fee of R599. After that, each transaction is charged at 2.95%.

Yoco also offers the Khumo card machine for R999 once-off that features a built-in SIM and unlimited 4G data, along with the Khumo Print machine that has a built-in printer for R1,999 once-off.

Online Payments

Yoco offers three types of online payment gateways for businesses that do not need card machines and sell most of their goods or services online:

• Yoco Link: This enables business owners to get paid even if they don’t have a website by sending their customers a payment link via WhatsApp, social media, email, or SMS.

• Yoco Gateway: This payment gateway takes only five minutes to set up and can be integrated with your Savvy Site so customers can pay online.

• Yoco Voucher: Yoco allows businesses to generate gift vouchers that can be sold via WhatsApp, email, SMS, or social media.

Paystack

Founded in Nigeria in 2015, Paystack expanded to South Africa in 2021. While the platform doesn’t offer card machines for in-person payments, it boasts an online payment gateway that seamlessly integrates with your Savvy site.

Not only do they offer a user-friendly payment solution, but their pricing structure is highly competitive. With Paystack, you'll get transparent fees of 2.9% + R1 per transaction. Plus, if your transaction is below R10, the R1 fee is waived.

From Master and Visa cards to Masterpass and EFT payments, your customers will have multiple options to choose from when making a purchase. While it takes up to 3 working days for payouts to appear in your account, Paystack's efficient system ensures you'll never be left waiting for long.

VodaPay

VodaPay is on a mission to make transactions super-simple, super-smart, and super-useful for everyone involved. Backed by the South African telecommunications giant, Vodacom, you can enjoy safe and secure transactions, affordable services, and transparent pricing.

Let’s look at their two most accessible payment solutions for small businesses: VodaPay Kwika and Vodapay Chop-Chop.

VodaPay Kwika

Don't let its small size fool you—the Vodacom Kwika card machine packs a punch! This standalone device is a game-changer for small businesses, and is designed to simplify your transactions without an additional cell phone.

With Kwika, you can accept QR scans and card payments on the go, all from the palm of your hand. You'll only need 30 minutes to set it up and make a once-off payment of R499. After that, you'll pay a transaction fee between 2% and 3%, depending on your monthly turnover.

VodaPay Chop-Chop (Scan to Pay)

VodaPay Chop-Chop is the perfect QR payment solution for businesses that want to ditch physical cards and embrace a new way of making payments. With this nifty mobile app, customers can use platforms like Snapscan, Banking App, Marsterpass, or Zapper to complete their transactions seamlessly.

To start using VodaPay Chop-Chop, all you need to do is download the app. Setting up and using the app is free, but you will pay a small percentage of each transaction. The best part? You can keep accepting payments even during load shedding!

Payfast

With Payfast's On-Site Payments, businesses can accept various payment methods on their website. Whether it's debit and credit cards, Instant EFT, or Masterpass payments, Payfast supports them all, ensuring a convenient and user-friendly checkout process.

When it comes to payouts for small businesses, Payfast understands the importance of predictability. That's why they offer a flat fee of R8.70 (excluding VAT) for all payouts, regardless of the amount. The company believes in transparency and simplicity, and you can expect the following fees per transaction:

• Credit & Debit Cards: 3.2% + R2.00

• Instant EFT: 2%

• Snapscan: 3.5% + R2.00

iKhokha

Card Machine

Featuring an impressive all-day battery life, the iKhola iK Mover seamlessly connects to your smartphone via Bluetooth, so it’s ready to go whenever you are.

This versatile device accepts all Mastercard and Visa cards, catering to a wide range of payment options. Adding to its user-friendly appeal, the iK Mover goes beyond traditional paper receipts by allowing customers to receive their transaction details via email or SMS.

It costs R399 once-off, and the transaction fees are set at 2.75% (excluding VAT), although these fees decrease the more you sell. In addition, iKhola charges a R2.50 settlement fee for each business day traded.

iK Tap on Phone

If you're starting out and seeking a short-term solution to accept card payments, iKhokha Tap on Phone is a fantastic option. With just your smartphone and the iKhokha app, you're good to go, without any setup fee or binding contracts to worry about.

Simply enter the desired amount on your iKhokha app, and with a tap of a card on the back of your smartphone, the transaction is processed. For added convenience for your clients, you can easily send them a digital receipt.

SnapScan

SnapScan prides itself on making payments snappy. Back in 2013, they launched one of the first mobile payment apps in South Africa. Teaming up with Standard Bank, SnapScan has been shaking things up, changing the way South Africans pay and get paid, all while making it a seamless experience for both customers and businesses.

SnapCode

Your SnapCode allows your customers to make instant payments with their mobile phones. To further enhance your payment experience, SnapScan allows you to include SnapCodes on your invoices and point-of-sale devices. This ensures that your customers can easily scan and pay, minimising any friction in the payment process.

Getting your SnapCode from SnapScan is easy—simply order a physical SnapCode from their online store or download a digital version. The standard transaction rate is 2.95% excluding VAT, ensuring a fair and transparent pricing model.

SnapLink

SnapLinks can be shared via email, SMS, or social media platforms so you can get paid, even if you don’t have a website yet (although you should!). In addition, you can conveniently place them directly on your invoices for added ease and efficiency.

Peach Payments

Peach Payments was launched in 2012 with the goal of revolutionising online payments. They quickly became a trusted South African payment gateway, offering easy ecommerce integrations and personalised support.

With no monthly or setup fees, they provide 365-day phone and email support to ensure their clients are always taken care of. When it comes to transaction fees, they offer competitive rates, starting from just 2.95% + R1.50 excluding VAT per transaction.

Peach Payments offers a wide range of ecommerce plugins for websites (including your Savvy site!), payment products, and integrations to suit everything from small businesses to massive enterprises.

Ready to supercharge your business? Register for your Savvy site, seamlessly integrate your payment solution, and enjoy getting paid without any hassle.

Note: Rates are based on information collected at the time of writing this article and are subject to change.