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Does PayPal Work in South Africa? What you need to know for 2024 for South Africa

by | Mar 28, 2019 | ECOMMERCE, Web Design, WEB DEVELOPMENT

paypal south africa  | Oonie Cape Town | Web Design and SEO Agency

Does Paypal work in South Africa or not? What are the pros and cons? . Discover the proIf you’re building a WooCommerce site in South Africa, selecting the right payment gateway is a crucial step. While PayPal is one of the most recognized payment platforms worldwide, its use in South Africa presents a few unique challenges. Though PayPal is a strong contender, especially for international transactions, there are some local hurdles to consider.

What is PayPal?

PayPal is a widely recognized online payment platform, known for its ease of use and fast transactions. It integrates seamlessly with platforms like WooCommerce, allowing users to pay via credit and debit cards. It’s trusted globally for its secure transaction processes.

does paypal work in South Africa

Pros of Using PayPal in South Africa

  • Simple Setup: Setting up PayPal is straightforward and it integrates easily with WooCommerce.
  • Wide Acceptance: PayPal supports payments from major credit and debit cards like Visa, Mastercard, and American Express.
  • Instant Transactions: Payments are processed immediately, which is great for businesses needing quick cash flow.
  • Fraud Protection: PayPal provides strong fraud protection, ensuring secure transactions for both buyers and sellers.
  • Global Reach: Ideal for businesses targeting international customers, as PayPal is widely used and trusted worldwide.

Cons for South African Users

Despite its global advantages, there are a few drawbacks for South African businesses, particularly related to currency and banking requirements.

  1. No Support for South African Rand (ZAR)
    • PayPal doesn’t support ZAR, meaning South African merchants need to set their store currency to one of PayPal’s supported currencies (like USD, EUR, or GBP). This can make local customers uneasy as they may not feel comfortable seeing prices in a foreign currency.
    • While there are currency converter plugins available for WooCommerce, these can make the checkout process more complicated for customers.
  2. FNB Requirement
    • To use PayPal in South Africa, you’ll need an FNB account or to use FNB’s withdrawal service to transfer funds to another bank. Even if you bank with a different institution, you must sign up with FNB to manage PayPal withdrawals.
    • Non-FNB customers can use the FNB withdrawal service, but the extra step can be inconvenient if FNB isn’t your main bank.
  3. 30-Day Withdrawal Rule
    • South African Reserve Bank regulations require you to withdraw funds from your PayPal account within 30 days of receipt. This adds an extra layer of admin, especially if you’re used to holding funds in your PayPal account for longer periods.
  4. Transaction Fees
    • PayPal charges roughly 2.9% of the transaction total, plus a fixed fee (around $0.30). These fees can add up, particularly for smaller businesses. Additionally, there are currency conversion fees when withdrawing funds to a South African bank.

Should You Use PayPal in South Africa in 2024?

The answer is yes, but with some considerations. PayPal is a great option for businesses targeting international customers who expect a globally recognized and trusted payment method. However, if your primary customer base is in South Africa, PayPal’s limitations—such as the lack of ZAR support and the FNB dependency—can be restrictive.

For businesses focused on the local market, other payment gateways like Payfast, Yoco, or Peach Payments may be better suited. These platforms support ZAR and offer a smoother experience for both merchants and customers in South Africa.

Conclusion

PayPal is a functional option for South African WooCommerce sites, especially if you’re selling to international customers. However, its limitations in the local context make it less than ideal for purely South African stores. For a more straightforward experience with local customers, consider using alternatives like Payfast that are designed for the South African market.

If you need help setting up payment gateways or building your e-commerce site, reach out to Oonie for expert web design and development services in South Africa!

Looking to build an ecommerce website? Take a look at our Web Design Services and enquire today.