Paystack is a payment gateway that lets South African businesses accept card payments online. You create a Paystack account, connect it to your website or invoicing software, and clients pay by Visa, Mastercard, or Amex. The funds are settled to your South African bank account within 1 to 2 business days. Paystack charges 2.9% plus R1 per successful transaction with no monthly fee.
What is Paystack?
Paystack is a payments company founded in Nigeria in 2015, acquired by Stripe in 2020, and available in South Africa since 2020. It provides online payment infrastructure for businesses ranging from freelancers to large e-commerce retailers.
In South Africa, Paystack is used for:
- Online invoice payments (via payment links attached to invoices)
- E-commerce checkout (via website integrations)
- Subscription and recurring billing
- In-app payments for software and apps
How does Paystack work?
When a client clicks a payment link connected to Paystack, they are taken to a secure payment page hosted by Paystack. The page shows the business name and amount. The client enters their card details (card number, expiry date, CVV) and submits.
Paystack processes the payment, deducts its fee, and settles the remainder to your registered South African bank account. You receive a notification via email and the Paystack dashboard updates in real time.
3D Secure (OTP verification): Most South African card payments require 3D Secure verification, which means the client receives a one-time PIN (OTP) from their bank via SMS and must enter it to complete the payment. This adds a layer of fraud protection.
Paystack fees for South African businesses
| Transaction type | Fee |
|---|---|
| Local cards (Visa, Mastercard, Amex) | 2.9% + R1.00 per transaction |
| International cards | 3.9% + R1.00 per transaction |
| Failed transactions | No charge |
| Monthly fee | None |
| Setup fee | None |
Example on a R5,000 invoice:
- 2.9% of R5,000 = R145
- Plus R1 fixed fee = R1
- Total Paystack fee = R146
- You receive = R4,854
What card types does Paystack accept in South Africa?
- Visa (credit and debit)
- Mastercard (credit and debit)
- American Express
Paystack does not currently support Diners Club in South Africa. It also supports instant EFT for some integrations via Peach Payments.
Quick answer
How does Paystack work for South African businesses?
Paystack is an online payment gateway that lets South African businesses accept Visa, Mastercard, and Amex card payments. You create a free Paystack account, verify your business details, and connect Paystack to your invoicing software or website. When a client pays via a Paystack payment link, they are taken to a secure checkout page, enter their card details, complete 3D Secure verification (OTP from their bank), and the payment is processed. Paystack charges 2.9% plus R1 per successful transaction for local cards. There is no monthly fee and no setup fee. Funds settle to your South African bank account within 1 to 2 business days. Paystack was founded in Nigeria, acquired by Stripe in 2020, and launched in South Africa in 2020. It is one of the three main payment gateways used for invoice payments in South Africa alongside Yoco and PayFast.
How to set up Paystack for invoice payments
Step 1: Create a Paystack account Go to paystack.com and sign up. You will need to provide your personal details, South African ID number, and business details.
Step 2: Complete business verification Paystack requires verification before you can process live payments. For individuals (sole proprietors), you typically need a South African ID and bank account details. For registered companies, you need your company registration number. Verification takes 1 to 3 business days.
Step 3: Get your API keys In your Paystack dashboard, go to Settings and then API Keys. You will find your Secret Key and Public Key. Keep the Secret Key private.
Step 4: Connect to Rebill (or your invoicing software) In Rebill, go to Settings and then Payments. Paste your Paystack Secret Key. Save. Payment links will now appear automatically on every invoice you create.
How do funds settle to your bank account?
Paystack settles to your registered South African bank account on a rolling daily basis. Transactions processed on Monday typically settle by Wednesday. Settlement is automatic; you do not need to manually withdraw funds.
You can see your settlement history and upcoming settlements in the Paystack dashboard.
Paystack vs other gateways
For invoice payments, Paystack is a strong choice because of its clean payment page, reliable uptime, and broad card support (including Amex, which Yoco does not accept). For businesses that need EFT as well as card payments, PayFast’s instant EFT option is worth considering. See Paystack vs Yoco vs PayFast for a full comparison.
Frequently asked questions
Can sole proprietors use Paystack in South Africa?
Yes. Paystack accepts individual (sole proprietor) registrations in South Africa. You verify with your South African ID number rather than a company registration number. Your Paystack account is linked to your personal bank account. This is the most common setup for freelancers and small businesses without a registered company.
How long does Paystack verification take in South Africa?
Paystack's business verification typically takes 1 to 3 business days in South Africa. You can create an account and test with a sandbox (test mode) immediately, but live payments require completed verification. Ensure you submit all required documents promptly to avoid delays.
What happens if a Paystack payment fails?
Failed transactions are not charged by Paystack. If a client's card is declined (insufficient funds, bank block, or card issue), they see an error message and can try again with a different card. You receive no charge and no notification unless you choose to monitor declines in your dashboard. The invoice in Rebill remains unpaid and you can follow up with the client directly.
Does Paystack work for recurring billing in South Africa?
Yes. Paystack has a subscription billing API that can charge a client's card automatically on a set schedule. This requires a more technical setup (or a platform that uses Paystack's subscription features). For most small businesses, Rebill's recurring billing sends invoices automatically on a schedule with a payment link on each invoice, which is simpler and does not require the client to store a card on file.