Payfast vs Paystack vs Ozow: SA Fee Comparison

April 4, 2026

SA Payment Gateway Fee Comparison: Payfast vs. Paystack vs. Ozow

As a senior consultant, one of the first things I audit for a high-volume SA store is their payment gateway statement. I often find brands losing tens of thousands of Rands every month simply because they are on the "default" pricing tier of a gateway they outgrew years ago.

In 2026, the local payment landscape is more competitive than ever. Let’s look at the "Big Three" and how they stack up on fees and functionality.

1. Paystack: The Developer’s Choice

Paystack (owned by Stripe) has become the gold standard for many SA tech-led brands.

Transaction Fees: Generally ~2.9% + R1.00 for card payments.
Payout Timing: T+2 (Funds are in your bank within 2 business days).
The "Killer Feature": Their API and dashboard are leagues ahead of the competition. If you are building a custom Next.js app or a complex subscription model, Paystack is usually the best choice.
EFT: They support "automated EFT" (Ozow-style) at a lower percentage (~1%).

2. Payfast: The Local Giant

Payfast is the veteran in the space and has the widest range of supported payment methods (including Mobicred and SCode).

Transaction Fees: Standard tier is ~3.5% + R2.00, but this is highly negotiable if your volume exceeds R100k/month.
Payout Timing: Daily payouts are available, which is great for cash flow.
The "Killer Feature": "No-code" ease of use. It works with every platform imaginable, from Shopify to Wix to a simple "Pay Now" button on a PDF invoice.

3. Ozow: The Instant EFT King

Ozow isn't a "card" processor; they specialize in Instant EFT.

Transaction Fees: This is where they win. Fees are often as low as 1% (capped or uncapped depending on your volume).
The "Killer Feature": No card, no problem. In a country where many people still don't have credit cards (but everyone has a bank account), Ozow is essential for conversion.
The Downside: It’s a "push" payment. You can't do recurring "subscriptions" with Ozow as easily as you can with a credit card.

4. The "Hidden" Costs

When comparing gateways, don't just look at the percentage. Watch out for:

Payout Fees: Some charge R5-R10 every time you move money to your bank.
Refund Fees: Do they keep the original transaction fee when you refund a customer? (Most do).
International Card Surcharges: If you sell to tourists or expats, expect to pay an extra 1-2% on those transactions.

5. My Recommendation for 2026

If you are a Shopify store doing under R50k/month: Start with Payfast or Paystack for simplicity.
If you are doing R100k+/month: You must offer Ozow (or a similar Instant EFT) as a primary option to lower your blended fee rate.
If you are building a SaaS or subscription box: Go with Paystack for their superior recurring billing logic.

Conclusion

Your payment gateway is the "heart" of your ecommerce plumbing. A 1% difference in fees might not sound like much, but on R1 million in sales, that’s R10,000 extra profit in your pocket. Audit your fees today.

Need help negotiating a better rate or switching gateways? Let's talk.