Choose the best online payment solutions for a small business in South Africa
Discover more about how to choose the best payment solutions for your business.
How to choose the best online payment solution for a small business in South Africa
Online transactions are taking over the world. E-commerce sales worldwide came to 4.9 million US dollars in 2019, more than 3 times more than in 2014, according to Statistica. Also, the South African pandemic has accelerated the use of online transactions. This has led to more online payment solutions and improvements in current online solutions.
So, we do you start when it comes to choosing the best online payment solution for your small business in South Africa? We chatted with Jonathan, a small business owner of a marketing agency.
Get great first-hand experience insights. Read what Jonathan had to say when asked popular questions about online payment solutions.
What is an online payment solution?
“It is a way to make payments via the internet, usually via an app or website.”
When should small businesses in South Africa use an online payment solution?
“Making online payments is convenient. For example, paying a supplier via your bank app is quick.”
What is the best online payment system?
“There are a few great ways to make online payments like via internet banking, payment links, and payment gateways. So, it depends on the situation and finding the best, reputable service provider.”
What is the largest online payment system?
“I think SWIFT is the biggest online payment system for international payments. However, the biggest online payment system online shoppers use is PayPal.”
How do I accept online payments?
“This process is usually automatic. Please remember to give your customers the right payment details to get paid if they will be doing an EFT.
"Other online payment solutions would be set up with your payment details to automatically make customer payments to your bank account.”
What is the cheapest payment gateway in South Africa?
“I know Yoco Gateway is free to use and only gets charged for transactions.
"So, what is the cheapest in the end? That depends on your business needs. How many sales is your online shop process per day? Is your online shop built with a popular platform like Shopify, Shopstar, Wix or WordPress, which simplifies adding a payment gateway?
"Do your research to find the most cost-effective payment gateway for your needs.”
Which online payment method is best in South Africa?
There are a few online payment methods to choose from based on the payment type. For example, paying a supplier for a big order could be easily done via an EFT with a bank app.”
What free online payment methods can I use in South Africa?
“Small businesses usually pay per transaction to use any online payment solutions. However, you may not have a bank charge per transaction, which could be covered in a single monthly bank charge.”
What e-commerce payment methods can I use in South Africa?
“A payment gateway is a popular option if your online shop processes many daily sales. Payment links and EFTs are also options.”
What are the best online payment methods in South Africa?
“There is the best payment option from a reliable company for different payment scenarios. For example, your bank could provide the best option to make an EFT to a supplier via the bank’s app.”
What are the online payment services that small businesses can use?
“There are many options for small businesses in South Africa. For example, Yoco offers small businesses payment links, payment gateway, and online gift voucher services. While banks offer EFT services.”
Jonathan gave us some great insights into online payment solutions. Keep reading to find out more about online payment solutions for your business.
Learn more about choosing the best online payment solutions for a small business in South Africa
What are online payment solutions? Online payment solutions enable businesses to securely receive and make different types of payments via apps and websites.
For example, when integrated with an e-commerce platform, an online payment solution known as a payment gateway enables companies to make and receive payments. The payment process starts once the customer has provided a credit card number, expiry date and CVV information. Today, your customer only needs to authorise via their bank’s online platform for the payment to proceed.
Online payment service provider (PSP) licence
Companies like Yoco must comply with the Payment Card Industry Data Security Standard or PCI DSS to obtain such a licence.
Do you need online payment service companies?
Yes - these services are critical regarding any online payments. Your business needs online payment solutions in the marketplace as much as it is necessary to have an online presence.
For example, you would never be able to start an online business without such service providers. Any effective content management system (CMS) such as WordPress provides fast and easy ways to get your online shop business going. Then, a payment gateway will process your customers' online purchases.