How to help your clients choose the right online payment gateway

Published Thursday 9 July 2026

Table of contents

• Why your clients need an online payment gateway
• Payment gateway options available in South Africa
• Key factors to evaluate when recommending a payment gateway
• How to set up online payment gateways for your clients
• How payment gateways improve cash flow for your clients
• Simplify your clients' payments with Xero
• FAQs on online payment gateways

Key takeaways

• Online payment gateways remove friction from the invoicing process, and Xero customers who use online invoice payments get paid up to twice as fast.
• South Africa has a growing range of gateway options, including instant EFT, credit and debit card, and mobile payment providers that integrate with accounting software.
• As an adviser, you're well placed to evaluate transaction fees, settlement times, security, and software integration to recommend the right gateway for each client.
• Setting up a gateway through Xero is straightforward, and monitoring payment performance gives you valuable data for advisory conversations.

Why your clients need an online payment gateway

Late payments remain one of the biggest cash flow challenges your clients face. When invoices sit unpaid, it creates a ripple effect across the business; from missed supplier payments to delayed growth plans. As their adviser, you can help solve this by recommending the right online payment gateway.

The data backs this up. A 2024 Xero survey found that 38% of customers say they get annoyed when they can't pay the way they want to, and 25% of customers say they choose where to buy based on their payment options. For your clients, that means offering convenient payment methods isn't just about getting paid; it's about keeping their customers happy.

An online payment gateway connects your client's invoicing process to a payment processor, letting their customers pay directly from an invoice via credit card, debit card, instant EFT, or mobile payment. Xero customers who use online invoice payments get paid up to twice as fast. That's a meaningful improvement you can quantify in advisory conversations about cash flow management.

Payment gateway options available in South Africa

The South African market offers several payment gateway providers, each with different strengths. Understanding the landscape helps you match the right solution to each client's needs.

Here are the main providers to consider:

• Payfast: One of South Africa's most established gateways, supporting credit and debit cards, instant EFT, Masterpass, and Mobicred. It integrates with a range of accounting and e-commerce platforms.
• Ozow: Specialises in instant EFT payments, allowing customers to pay directly from their bank account without entering card details. Known for lower transaction fees compared to card-based gateways.
• Yoco: Popular with smaller businesses, Yoco offers card payments both online and at point of sale. It's a good fit for clients who need a combined in-person and online solution.
• Peach Payments: Supports credit and debit cards, instant EFT, and mobile payments. It's geared towards businesses with higher transaction volumes and offers advanced fraud protection.
• Paystack: Owned by Stripe, Paystack provides card payments, bank transfers, and mobile money. It's developer-friendly and integrates well with custom-built systems.

The 3 main payment types available across these providers are credit and debit card payments, instant EFT, and mobile payments. When evaluating options for your clients, integration with their accounting software should be a key criterion. Seamless integration means payments automatically match to invoices, saving you and your clients hours of manual reconciliation.

Key factors to evaluate when recommending a payment gateway

Choosing the right gateway for a client isn't just about the lowest fee. You'll want to assess several factors to make a well-rounded recommendation.

• Transaction fees and pricing models: Compare percentage-based fees, flat fees, and any monthly charges. Instant EFT providers typically charge lower fees than card-based gateways.
• Payment methods supported: Consider whether your client's customers prefer cards, instant EFT, or mobile payments. Offering multiple options reduces friction.
• Integration with accounting software: A gateway that integrates directly with Xero means automatic payment matching, real-time reconciliation, and fewer manual entries.
• Security and PCI DSS compliance: Verify that the gateway is PCI DSS (Payment Card Industry Data Security Standard) compliant and offers fraud detection tools.
• Settlement times: Some providers settle funds within 24 hours, while others take 2 to 3 business days. Faster settlement means better cash flow for your clients.
• Local support and documentation: A provider with South African-based support can resolve issues faster and understand local banking nuances.
• Scalability: Choose a gateway that can grow with your client's business, handling increasing transaction volumes without performance issues.

How to set up online payment gateways for your clients

Setting up a payment gateway is a practical service you can offer as part of your advisory work. Here's how to approach it step by step.

1. Assess your client's payment needs

Start by understanding the basics: how many invoices your client sends per month, their average invoice value, and which payment methods their customers prefer. Look at their current debtor days and identify where late payments are costing them most. This gives you a clear picture of what the gateway needs to solve.

2. Compare gateway options and fees

Map each provider's fee structure against your client's revenue and transaction volume. For clients with many small transactions, a low per-transaction fee matters most. For those with fewer, higher-value invoices, the percentage rate is more important. Consider whether passing the transaction fee through to customers makes sense for your client's business model.

3. Set up the gateway with accounting software

Connect the chosen gateway to your client's Xero account. Xero supports online invoicing with built-in payment options, so the setup process is straightforward. Once connected, payments automatically match to the correct invoices, and reconciliation happens in real time.

4. Configure invoice templates with a pay now option

Create invoice templates that include a "pay now" button, and set up versions without it for situations where online payment isn't appropriate. Some practices recommend offering the pay now option only on invoices below a certain threshold to manage transaction costs effectively.

5. Monitor and optimise payment performance

Once the gateway is live, track key metrics: average time to payment, reconciliation accuracy, and which payment methods your client's customers use most. Review settlement times to make sure funds are arriving as expected. This data feeds directly into your advisory conversations about cash flow improvement.

How payment gateways improve cash flow for your clients

Payment gateways don't just make invoicing more convenient; they create measurable improvements in your clients' cash flow. Here's what you can expect to see.

The most immediate benefit is faster payment collection. Xero customers who use online invoice payments get paid up to twice as fast. When a customer can click "pay now" directly from an invoice, there's no delay from writing cheques, setting up manual bank transfers, or waiting for the next payment run.

Faster payments translate directly into reduced debtor days. You'll see outstanding invoices clear sooner, which means your clients have more working capital available for day-to-day operations and growth.

Automated reconciliation is another significant win. When payments come through an integrated gateway, they're matched to the correct invoice automatically. This saves your practice time on bookkeeping and gives you confidence that the data is accurate. You can learn more about how Xero handles this through bank reconciliation.

Better cash flow visibility is where the real advisory value lies. With real-time payment data flowing into your client's accounts, you can have more informed conversations about cash flow forecasting, seasonal trends, and strategic planning.

Simplify your clients' payments with Xero

Helping your clients adopt online payment gateways is one of the simplest ways to improve their cash flow and strengthen your advisory relationship. With Xero, the setup is straightforward, the reconciliation is automatic, and the data gives you a clearer picture for every client conversation.

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FAQs on online payment gateways

Here are some frequently asked questions about online payment gateways and how they work for your clients' businesses.

What is an online payment gateway?

An online payment gateway is a service that processes electronic payments between a buyer and a seller. It securely transmits payment information from the customer to the payment processor and returns a confirmation once the transaction is approved. In practice, it's the technology that lets your clients accept card, EFT, and mobile payments directly from their invoices.

How much do payment gateways cost in South Africa?

Costs vary by provider and payment method. Credit and debit card transactions typically range from 2.6% to 3.5% plus a small fixed fee per transaction. Instant EFT providers like Ozow generally charge around 1% per transaction. Most gateways have no setup fees or monthly charges, so your clients only pay when a transaction goes through.

Can payment gateways integrate with accounting software?

Yes. Many South African payment gateways integrate directly with cloud accounting platforms like Xero. This means payments are automatically matched to the correct invoices, reconciliation happens in real time, and your clients' financial data stays accurate without manual data entry.

Are online payment gateways secure?

Reputable gateways are PCI DSS compliant, which means they meet the Payment Card Industry's security standards for handling card data. They use encryption, tokenisation, and fraud detection tools to protect transactions. When recommending a gateway, check that it holds current PCI DSS certification and offers additional security features like 3D Secure authentication.

How do you help clients choose the right payment gateway?

Start by assessing your client's transaction volume, average invoice size, and the payment methods their customers prefer. Compare fees across providers, check integration compatibility with their accounting software, and review settlement times. The right gateway balances cost, convenience, and reliability for your client's specific situation.