Mar08
02
Our PayPal Woes Are Over - PayFast Is Online Payment Processing For South Africa
The highlight of Bloggerati Jo’burg (thanks to Matt and Vincent for hosting it) last night was meeting Andy Higgins, founder of BidorBuy - Africa’s largest online auction site.
For an entrepreneur as successful and well-established as Andy is, he was completely unassuming. In fact I wouldn’t have known who he was at all had he not introduced himself to me, saying that he followed this blog and some of the work being done on Cerebra and Afrigator. How ironic!
We chatted a bit about our respective interests and some of the projects we’re working on, when Andy dropped a veritable bomb (in a completely unassuming way) with a mention that he’s just funded the development of PayFast - a secure, online payment processing site for South Africa. Quite simply, PayFast makes it “safe for buyers to send money and easy for sellers to receive money” online.
Finally!
PayFast lists the benefits for buyers and merchants (bearing in mind that you don’t have to be a massive retailer to be a merchant - I could be a merchant, provided I’m selling something):
For Buyers
* Shop Online without disclosing your financial information
* Pay using EFT with the ease and speed of a Credit Card
* Shop with confidence online
For Sellers
* No monthly fees! Only per transaction fees
* Accept EFT payments with the ease & speed of credit cards
* No manual reconciliation required to accept EFT payments
* Reduced fraud through effective use of technology
This is fantastic news for all of us, and hopefully will signal a whole new generation of online start-ups and useful services. All credit to Andy and his team - by his own admission this is the project he is most passionate about right now, and I can see why.
How is it that our “PayPal Woes Are Over”? What is described here is a SA based CC transaction service for South Africans by South Africans.
How will this let me receive money for work I do online for people overseas? How will this let people on eBay send me money for stuff they purchase from me?
Until eBay offers offers this “PayFast” as a payment method I think our PayPal Woes are far from over.
I’ve spoken with Andy Higgins before, and I must agree that he is the perfect person to launch this, considering his experience with BidorBuy!
I must however agree with John’s sentiment. The big idea of getting PayPal into SA is so that we can SELL to people in the global marketplace that is the internet.
That is currently our holy grail.
You’re both right, and sorry if I misrepresented it. As it stands the service allows EFT payments between our four major SA banks. The moment CC functionality is added to the site, which Andy tells me is in the pipeline, it becomes a global offering.
Sorry about the confusion John, my enthusiasm got the better of me - it still is a step in the right direction methinks?
Mike, I do agree that this development is good news for SA e-Commerce and if other online retailers sign up I would strongly consider signing up, especially if it offers some type buyer-protection against fraud that PayPal does.
Looking back at my post I think I worded it rather harshly. While it’s true that it’s not a substitute for PayPal, it is certainly a step in the right direction.
What would make this extra nice is if you could send money to an e-mail address rather than an account number. I know that whenever I make a once-off payment via EFT I am very nervous because making a small mistake on an account number can put it into the wrong account and it’s difficult, if not sometimes impossible, to undo the mistake if you don’t pick it up right away.
Ever seen AlertPay.com?
They offer localised South African banking, as well as international to-your-email-account transfers. Just like paypal, except that it’s faster, prettier, and I actually got an email back from their support department in 36 hours.
And they support South Africans.
~ Wogan
Greetings All,
My name is Jonathan Smit and I am the MD of PayFast.
It’s great to see you guys discussing our service, but I must just let you know that we are currently in a period of beta testing, so are not yet fully operational.
Yes, our first aim is to be a payment processor by South Africans for South Africans focusing on mediated EFT rather than Credit Cards.
We will be offering credit cards in the future, and when that happens the offering does indeed become more global.
John, User to User transfers have not been put in place yet, but the intention is to allow the sending of money to anyone with a valid email address (or cellphone number) just as PayPal does.
A nice feature about our solution, is that you only have to enter EFT credentials once for your “PayFast Wallet” and after that, no more account numbers need be entered to pay anyone through our system
This is still a fantastic thing for us South Africans. The ability to transact more securely is a win. Being able to receive funds through PayPal would be fantastic but until that happens, let’s keep moving in the right direction.
This type of service requires critical mass in order to get off the ground, and it’s often a chicken-and-egg problem. Online retailers won’t add the payment option to their site until there are enough potential customers who use it, and the customers won’t sign up until there are places to use the account.
I honestly hope they pull it off, and that the “techie” community (who are always the early-adopters) put their weight behind it to tip it over the edge. Perhaps PayFast’s marketing strategy should include offering a worthwhile incentive to bloggers to use PayFast in their business dealings so that a critical mass is built up quickly? Bloggers are early-adopters, they have an audience to preach too, and they often run entrepreneurial ventures that are able to adopt new technologies easier.
Interesting, the whole PayPal topic has been discussed on my blog in great extent, with over a hundred comments on the post. PayFast was mentioned, but the site looks very risky!
Here’s the link: http://imod.co.za/index.php/2008/02/13/i-called-paypalcom-today-from-south-africa-and-asked-wasssup/
I am currently working on an e-Book that offers several working solutions to the problem of accepting PayPal for South Africans and people from other countries similarly affected. Since I have to carry out a number of tests and write the e-Book, this should take at least 2 to 3 weeks at most.
I will be offering the e-Book in the Warrior Forum as a special offer and need local testimonials. There are ample International testimonials for those looking for a PayPal alternative because of alleged bad service by PayPal.
As such the ebook offers several working and low cost solutions, in the main, to all disatisfied internet marketers! The ebook also recommends other reliable payment processors for those disillusioned with PayPal and highlights a site that offers evidence based claims of law suits against PayPal.
So rather than jumping from the frying pan into the fire, the e-Book gives the reader the facts and they decide which payment processor to use ultimately!
I must admit that I battle with making e-Book covers with the titles. If someone can help doing the e-cover I will give them the free report that promotes the e-Book and later, when ready, a free copy of the “PayPal Problems Solved” e-Book and another high quality ebook that is a gem on starting and sustaining one’s online business in return for another high quality e-Book cover.
Any takers?
Regards,
Rajesh
Sorry, neglected to tick the follow up box.
Thanks Mike, this is good info. At the drupal groups site I’m asking what payment gateways South Africans use - do you have a particular recommendation?