PayCly is one of the leading payment service providers in South Africa. A payment service provider (PSP) is a firm that offers every type of payment solution for an online business, including a merchant account, payment gateway, etc. A payment gateway is a mechanism that links the merchant account and payment portal on your website. A payment gateway simplifies financial processes by transmitting payment information in an encrypted and tokenized manner. In contrast, a merchant account handles all aspects of banking, such as accepting, keeping, and withdrawing money.

Why Do You Need a Payment Gateway in South Africa?

The economy of South Africa (Republic of South Africa RSA) is the most developed, industrialized, and diversified in all of Africa, ranking as the second largest in the continent. The ecommerce market (online market) generated revenue of US$ 8.46 billion in 2022 and is expected to create US$13.83 billion by 2025 in South Africa. At the beginning of 2022, South Africa's internet penetration rate was 68.2 percent of the overall population. The rising internet penetration, digital awareness, and several benefits of online shopping are the main reasons behind the development of online businesses.

The world is going through digital metamorphism, where every possible work is being done via online mode. Even world summits are being organized online. The Covid-19 pandemic played a significant role in the speedy acceptance of the online world. Nowadays, people are meeting, chatting even marrying online. Similarly, shopping, gaming, betting, casino, forex, ecommerce, escort services, sex toys, etc., are the industries that have seen tremendous growth in the online sector. Today, people prefer to shop, play games, bet and gamble online rather than in traditional offline mode.

There are many reasons to choose an online marketplace as a substitute for offline. The online market allows people to shop, bet, gamble, or play from anywhere, and it enables you to compare prices, get offers, and many more benefits. A payment gateway and merchant account are the fundamental need of an online business. A payment gateway enables you to accept online payments from your customer via 100+ payment methods, including credit card, bank transfer, BNPL crypto, etc.

Types of Payment Gateways

Payment gateways can generally be divided into three categories, and are as follows: