Online Payment Problem for South African SME’s
South African SME’s are hampered by lack of economical online payment facilities for their customers. Small enterprises in SA came across a big stumbling block when trying to trade online in South Africa; Normal credit card methods of online payment are simply too expensive for most small traders, taking around 8.5 percent in transaction fees. Many operate at low margins in order to be competitive.
Low cost online payment methods are not available, e.g. the well-known PayPal service cannot be integrated successfully with e-commerce application using local SA Rand as the base currency. Direct transfer by online banking is not a realistic payment method for cash strapped customers, most will need to pay using a credit card for all except small item purchases.