PayFast vs PayPal: Which One to Choose to Supercharge Your Payments?

One major factor that determines business success is the business’ capability to conduct seamless transactions. Whether you deal with e-commerce, e-memberships, subscription services, or any other kind of online business, smooth payment handling is crucial to stay ahead of the competition. In order to facilitate frictionless transactions, businesses require a payment gateway which suits their needs.

Today, a variety of payment gateway options are available in the market. Among them, two contenders stand out from the crowd: PayPal and PayFast. Both of these gateways offer their unique services to enhance the online purchase experience. While PayPal holds international recognition with millions of users around the globe, PayFast is a South African powerhouse catering to a specific market.

In this article, we’ll compare PayFast vs PayPal. We’ll break down their strengths, pricing structures, and functionality to help you make an informed choice between the two.

PayPal: An Overview

PayPal is a popular payment platform in the market. As of 2025, it is present in over 200 countries, and supports more than 25 currencies. PayPal connects merchants and users via smooth and secure money transfers. It is trusted worldwide due to a number of features such as two-factor authentication, buyer protection, user-friendly interface, and more.

Here is how PayPal works: Users create a PayPal account, and link their preferred payment method with it. For example, credit card, bank account etc. User account is only registered after it passes PayPal’s verification. The platform checks the authenticity of the user’s identity, and their proof of funds. Once successfully signed up, users are enabled to send and receive payments. PayPal gives you the choice to utilize its services both online and via app. Users can rely on their PayPal accounts for making online purchases, transferring funds, or keeping funds stored away.

PayFast: An Overview

PayFast leads the payments industry with a strong focus on the South African economic landscape. It offers a range of features for supporting seamless transactions, and simplifying customer checkout experiences. PayFast is well-liked due to its intuitive interface, secure transactions, and stellar customer support. It also supports a wide range of payment options, such as debit cards, Samsung Pay, SiD, etc.

Here is how PayFast works:  Businesses register their accounts on PayFast following a simple process. They can then link their bank accounts and preferred payment methods with this payment gateway. At the time of purchase, PayFast offers a company’s customers all their linked payment methods. Merchants automatically receive notifications in case of successful transactions. Merchants can either transfer funds from PayFast to their linked accounts, or keep the funds in PayFast for future use.

PayFast vs PayPal: Comparison in Key Features

• Secure Transactions

PayFast actively monitors transactions, protecting them from fraud. The platform is PCI-DSS compliant, and implements various security measures for payment data protection.

PayPal is also trusted due to its secure payment processing. It has robust security features such as user-data encryption to prevent data breaches. Users can also enable two-factor authentication to verify fund transfers before they take place.

• Multiple Payment Options

PayFast offers connection with a wide range of payment methods, and especially with local South African payment platforms. Examples include credit/debit cards, Samsung Pay, Apple Pay, Instant EFT, Mukuru Pay, and SnapScan.

PayPal accepts transactions via credit and debit cards, and other popular international payment methods. It also has its own payment services by the names PayPal Credit and PayPal Balance. However, it does not offer specific regional payment methods such as Instant EFT, like PayFast does.

• User Friendly Interface

PayFast is dedicated to simplifying transaction management for both the businesses and the customers. It offers them an intuitive interface for frictionless payments.

PayPal also supports a simple and user friendly interface. The platform enables users to set up their own accounts with ease, and then link these accounts to their credit cards and bank accounts for convenient transactions.

• Global Reach

PayFast is widely known in the South African market, as it primarily operates there. It also operates in Pakistan where it goes by the name “GoPayFast”.

PayPal, on the other hand, holds global recognition, and operates in more than 200 countries. It supports 25+ currencies which makes it a smart and convenient choice for businesses dealing with international payments.

• Merchant Services

PayFast facilitates businesses in invoice creation, and also enables them to collect payments through the local payment methods trusted in South Africa. The platform also empowers users to make over the counter (OTC) payments at physical locations such as convenience stores. It also offers direct mobile banking through mobile wallets like Apply Pay, or local payment services, such as SiD Secure EFT.

PayPal also equips users with the invoicing feature. It does not directly support mobile banking like PayFast does. However, users can link their bank accounts with PayPal for transactions and withdrawals. PayPal also allows business loans, and shipping and order management (features which PayFast lacks). One of the key strengths of PayPal is its global payment support which makes it ideal for companies operating internationally.

• Buyer Protection

PayFast does not offer specialized buyer protection features. It does, however, ensure secure transactions as well as fraud prevention.

PayPal, on the other hand, is known for its buyer protection services. It issues refunds for eligible purchases. If a customer does not receive their ordered product, or find issues with the product quality, they are eligible to file a dispute with PayPal. PayPal is responsible for investigating the case, and issuing refund if applicable. PayPal also offer smart fraud protection against unauthorized transactions. In selected regions, PayPal also supports return shipping refunds. It means that customers can return a product not up to their expectations, and then get refunded for the return shipping fees as well.

• Integration Capabilities

PayFast can be easily integrated with well-known e-commerce platforms such as Shopify and WooCommerce for seamless transactions.

PayPal also integrates seamlessly with a wide range of e-commerce platforms and other third party software. It can also be embedded into shopping carts for a smooth checkout experience. Its extensive compatibility makes it a great choice for online businesses.

• Customer Support

PayFast offers 24/7 customer assistance through email, live chat as well as direct communication via phone. With PayFast businesses can resolve their urgent issues quickly, enhancing their transaction experience, and minimizing downtime.

PayPal also offers a range of customer support channels such as email, chat, and phone. It also offers customers self-service options via their community forum, or troubleshooting guides, where users can find answers to some of the most asked questions. PayPal’s response time depends upon the customer’s concern and contact method, and hence can vary. It does not support instant availability like PayFast.

PayFast vs PayPal: Comparison in Pricing Structures

Setup Fees: PayPal and PayFast do not impose any setup charges.

Transaction Fees: PayFast’s transaction charges depend on the payment method used. They do not impose any fixed charges. On the other hand, PayPal generally charges 2.9% of the payment + $0.30 for each transaction. However, this can also change depending on the payment method, and country.

Monthly Fees: Both the platforms do not charge any monthly fees. However, businesses who purchase PayPal’s advanced features might be subjected to monthly charges.

Currency Conversion Fees: PayFast can apply currency conversion fees if the merchant is dealing with a number of currencies. PayPal does typically charge currency conversion fees since it operates internationally. The fee can be around 3-4% of the total payment.

Withdrawal Fees: PayPal can charge this fee for instant money withdrawals to the linked bank accounts or credit/debit cards.

Integration Fees: PayFast applies integration fees as well, and they depend on the level of integration involved.

Read more: Nila SaaS Platform

PayFast vs PayPal: Comparison in Functionality

PayFast: It has a regional focus in South Africa, and Pakistan, and it supports a wide range of locally trusted payment options. It connects businesses with local banks, and also offers billing and invoicing tools in compliance with local standards. PayFast allows mobile banking in various regions, making it easier for customers to pay. Moreover, it offers 24/7 customer support via various channels including direct communication through phones.

PayPal: It focuses on simplifying the payments process globally, and offers extensive support for international transactions. PayPal’s services are suitable for both business use, as well as personal use, unlike PayFast which is eligible for business use only. PayPal facilitates invoicing like PayFast, and provides additional services too, such as business loans. It offers proactive customer support with varying response times. PayPal also has a mobile application so that users can manage their payments and accounts on the go.

Which Payment Gateway to Go for?

Since now you have reached the end of the discussion, you might have formed a better understanding of PayFast and PayPal, and their unique strengths and advantages over each other. Both the platforms excel in simplifying transactions in their own ways.

If your business operates on an international scale, opting for PayPal would be the better option. That is because PayPal offer unrivalled global transaction capabilities, and supports payments in multiple currencies. If your business is focused on a specialized market such as South Africa, going for a PayFast integration might be the better choice. That is because PayFast is not only trusted by South African locals, but it also offers integrations with local African payment platforms which the residents frequently use and prefer. Therefore, companies choosing PayFast have a better chance at attracting local South African customers offering SaaS billing solutions.