Finally, a Payment Gateway for Namibia!

Ardi

Lately I've been talking a lot about Payment Gateways and how unfortunately Namibians are only left with 2Checkout.com as an option when it comes to payment gateways. I'm happy to announce that another player has entered the market and offers a really amazing solution. They not only offer support for Namibian bank accounts but also offer some really nifty extras that will even make non-Namibians want to consider switching.

Important Note: For those that don't know, the current exchange rate is: N$1.00 (1 Namibian Dollar) = R1.00 (1 South African Rand). 1 US Dollar is roughly 12 Namibian Dollars.

Firstly, what does a Payment Gateway need in order to work in Namibia?

The biggest problem with payment gateways is redeeming the payments into a Namibian bank account. Until today and as far as I've come across, only 2Checkout has offered a decent solution to the problem of depositing money into Namibian bank accounts. However, 2Checkout doesn't require a merchant account. This is probably why the fees are so high. Therefore, in order to receive payments effectively using a proper payment gateway, you need:

  • A merchant account with a bank
  • A bank account with a bank account that is supported by the bank where the merchant account resides

If you can get a bank account in another country, the solution I propose is less impressive, as there are loads of other payment gateways that would work for non-Namibian bank accounts. However, if you can't get a bank account outside of Namibia or if you want a payment gateway that can allows payments on your site without leaving your website, read on.

So which payment gateway should I use?

*drum roll* ..... you should be using Peach Payments.

But how do I get the merchant account if my bank doesn't support it?

Peach Payments will assist you in opening a merchant account with Nedbank in Namibia. In other words, even though you might be banking with Bank Windhoek or FNB, once you start the application process through Peach Payments, they will tell you what is required and help you get a merchant account with Nedbank, who in turn can then deposit funds directly into your Namibian or non-Namibian bank account.

But I don't bank with Nedbank?

No problem. Nedbank only gives you the merchant account. When you receive a payment, the money is still transferred into any Namibian bank account you choose. Of course, they also support many other banks from different countries, but this is great news for Namibians who, until now, have had very limited payment gateway options.

What fees can I expect to pay?

Note: These rates are as I received them today (17 February 2015) and are likely to change over time. If you are reading this and it's no longer 2015, you might be better off asking Peach Payments for their latest rates.

Peach Payments currently charge N$ 300.00 per month for a normal transacting account and optionally an additional N$ 200.00 per month if you wish to make use of their recurring payments services. Most users would probably opt for the N$300.00 per month account, unless you offer several services that require monthly billing.

Peach Payments then also charges a fixed transaction fee of N$1.50 per transaction. However, various discounts will apply if you do more than 3000 transactions per month, making it even more affordable as your business grows.

The final fee associated with using a payment gateway is a fee charged by your bank for the merchant account. This fee can also vary depending on a couple of factors such as the number of transactions you do per month and the average value of each transaction. Expecting 3.5% is not unrealistic, but lower than that could possibly be obtained, depending on your relationship with your bank.

Is it cheaper than 2Checkout (and other Payment Gateways)?

Peach Payments generally works out to have the same cost as MyGate, Setcom etc. Their monthly fees all range in the N$200 - N$500 bracket, with transaction fees generally being around N$1.50. 2Checkout, on the other hand, is significantly more expensive. That means if you have a Namibian bank account and your choices are between 2Checkout and Peach Payments, you are better off using Peach Payments. 

To demonstrate why Peach Payments is cheaper, I am going to do an example where I assume that you do 20 transactions each month, with a value of N$500.00 per transaction, giving you a total income of N$ 10 000.00 per month.

With 2Checkout, if you had to do 20 transactions per month with a value of N$500 per transaction, you would have the following fees:

  • 5.5% of total value: 5.5% of N$10 000 = N$550
  • 0.45 US cents per transaction fee: 20 x 0.45 US Cents =  N$108
  • 10USD per N$3600 withdrawn: +-30 USD which is equal to roughly N$360

Total cost if using 2Checkout: N$ 1018

In other words, of the N$10 000 that you were supposed to get, you lost 10.2% of your income.

Now let's look at what it would've cost you with Peach Payments:

  • 3.5% of total value for transaction fee: 3.5% of N$10 000 = N$350
  • N$1.50 per transaction fee: 20 x N$1.50 =  N$30
  • N$300 monthly fee

Total cost if using Peach Payments: N$ 680

In other words, of the N$10 000 that you were supposed to get, you lost 6.8%.

That is a 3.4% saving with Peach Payments! Or, N$338.00.

Things get even more interesting when you look at more transactions:

Payment Gateway Cost Comparison

Savings are very little when you are doing less than 500 Transactions, but the moment it starts going over, the savings become significant. If your business ends up doing 50 000 transactions a month, you would have lost 1.5 Million Namibian Dollars. That is a lot of money to lose if you think you can save so much just by switching payment gateways!

Here is more linear representation with smaller numbers:

Payment Gateway Cost Comparison

Again, it can be seen quite clearly that even at 200 transactions a month, you are already saving about N$8000.00. It should be abundantly clear that 2Checkout charges significantly more than Peach Payments.

Click here to download the Excel File used to generate the graphs above. This will allow you to tweak the number of transactions and find answers for your specific scenario.

What other benefits does Peach Payments offer?

One of the coolest features of Peach Payments is that they don't require anything fancy in order to do processing without going off-site. In other words, the user won't first be directed to 2checkout.com (or some other off-site link) and do anything on that page because everything happens on your website!

How do I integrate Peach Payments on my website?

This varies from implementation to implementation. If you need help implementing the Peach Payments Payment Gateway, please contact Namhost for more assistance.


UPDATE (3 March 2015)

Peach Payments is still finalizing a few licensing requirements on their side and, as a result, will only accept new applications in a few weeks.

UPDATE (4 March 2015)

I did receive some feedback with regards to the Compliancy. This is what I was told:

In terms of compliance we are fully compliant and PCI Level 1 certified. 

The way we embed on the merchant’s page is using a JS widget. This allows the user to enter the card data into a widget that is actually directly hosted by us and not by the merchant.

We can also additionally enable mini frames within the widget that will ensure that even the fields where the user enters the card data come from our servers in their entirety. This would then allow merchants to comply with PCI DSS 3.0 as well and qualify for the SAQ – A based certification process.

So overall, our entire solution is fully compliant and is very similar to a Stripe like experience.

UPDATE (19 March 2015)

We are almost finished with our integration of Peach Payments. Below is a screenshot of what it will look like:

The best part is still that once the user clicks "pay now", they are transferred to the thank you page onsite. You will not first go off-site and complete the transaction on another website. This has some really nifty benefits:

  • The user will feel more secure if they remain in one environment
  • Your branding remains intact and you don't have to advertise another company each time you make a sale.
  • It's fast! (With 2checkout the user had to enter all their details again or still double check it even if it is pre-populated)
AttachmentSize
File PaymentGatewayCostComparison.xlsx16.13 KB
About the Author
Ardi
Ardi
Armed with a degree in Computer Science and over 15 years of experience building applications for the web, Ardi functions as the go-to guy for all technical problems that might arise at Namhost. His problem-solving skills are second to none and has been critical to the success of Namhost. Although very skilled in a variety of frameworks such as Laravel and Zend, Ardi has become an expert in Drupal.

Comments

Keith Rogers's picture
Posted by Keith Rogers on 3 March 2015 - 9:42am
 
i want to know how peach Payments got around the compliance requirements. the main reason why payment gateways don't allow you to do the transactions on-site is because it breaks those compliance rules.
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Ardi's picture
Posted by Ardi on 3 March 2015 - 10:17am
 
Very good point. I'll see what I can find out and update this post when I have more information.
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Ardi's picture
Posted by Ardi on 4 March 2015 - 12:57pm
 
I added an update to the end of the article that answers your question. Please let me know if you are happy with the answer or if you have any more questions?
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Posted by Warren on 4 June 2015 - 5:39pm
 
Hi sir Iam warren I want to know if I can transfer money from paypal to 2checkout..or if I can open a south african account and transfer money from pay pall to SA bank account than transfer it to a namibian bank account
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Ardi's picture
Posted by Ardi on 4 June 2015 - 5:45pm
 
Hi Warren. I don't think you can transfer money from paypal to 2checkout. You can transfer from either of them to a bank, and then transfer cash back to either entity.It would also be possible to transfer from PayPal to a South African bank account, but contat FNB for more information. It's not that simple. And yes, you can finally transfer money from South Africa to a Namibian bank. This should be no problem.
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Posted by U-M-K-A on 6 July 2015 - 11:47pm
 
Is it possible to transfer money from Paypal to a Namibian Bank Account?
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Ardi's picture
Posted by Ardi on 7 July 2015 - 6:27am
 
Hi U-M-K-A!The last time I checked it's only possible to withdraw into a South African FNB account. Not a Namibian FNB account, or any other Namibian account. With PeachPayments you can certainly receive funds into a Namibian account. Or if you don't mind high fees and you have a rock-solid strategy to fight fraud, then 2checkout might be a better option for you. However, we recommend Peach paymenys, purely because it is fast, looks extremely professional and you can redeem to your own bank account.
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Posted by Andreas on 13 July 2015 - 9:38am
 
Dear Namhost community!

I'm Andreas from Peach Payments and would just like to provide an update on our availability to Namibian merchants.

As Ardi has described, we'll be making our solution available in Namibia, considering all local compliance. Our goal is to make it as convenient and safe as possible for Namibians to pay online (and for Namibian merchants to accept payments online). The solution will work in connection with a Namibian merchant account, so that Namibian residents will be able to accept credit card payments and receive settlement into their Namibian bank accounts.

We have worked out many of the necessary aspects and have the right partners in place, but there is still some compliance work to be done. Since we're not in full control of the process, we cannot commit to a reliable date for our going live, but we'll make sure to keep the Namibian community informed and we'll do our best to become available as soon as possible.

We're grateful for the interest received so far and we're very grateful for Namhost's mentioning us in such a positive way!
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Posted by Kondjeni Ndakeva on 4 August 2015 - 11:57am
 
Does my website need a SSL or will Peach Payments cater for that when it comes to doing payments?!
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Ardi's picture
Posted by Ardi on 4 August 2015 - 12:20pm
 
Hi Kondjeni. Google recommends all websites use SSL and very few experienced online shoppers would buy from a shop that doesn't have SSL. But to answer your question, I think in the case of 2Checkout, you can possibly make use of their hosted checkout option. However, I would not recommend selling online without having an SSL Certficiate. You are looking at spending about N$250 per year for a certificate. That's not a lot to pay for peace of mind for both yourself and your visitors. And you'll probably make up for this expense by making more sales, due to visitors having considerably more confidence in the validity of  your website.
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Posted by Gordon Ashby on 18 August 2015 - 9:24am
 
There is another Payment Gateway that is available in Namibia as has been for more than a year.

Drum roll ... Virtual Card Services Namibia.

We have all the compliance issues in place PCI-DSS, 3DS, PAN registration and Mastercard/Visa registration. This process was started in 2010 and took 4 years to complete.

Good luck with yours.
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Posted by [[NO_DISPLAY_NAME]] on 30 September 2016 - 10:53am
 
How do we get hold of Virtual Card Services Namibia?
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Posted by Granwille on 30 September 2016 - 11:41am
 
Hi,You can contact Manja at; manja@vcs-nam.com.na
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Posted by Gordon Ashby on 18 August 2015 - 9:27am
 
Which acquirer does Peach deliver their transactions to ?
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Posted by Gordon Ashby on 18 August 2015 - 9:27am
 
Are they registered with PAN ?
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Ardi's picture
Posted by Ardi on 18 August 2015 - 10:32am
 
I have no idea, but will ask peach payments and see what they say. More importantly to me, how does the VCS checkout process look like lately? The last time I checked (which was quite a while ago) you were still required to go off-site which destroyed the user experience and was the main reason why we opted for peach payments.
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Posted by Gordon Ashby on 19 August 2015 - 10:54am
 
Our primary interface is still a re-direct although we do support a server-to-server authorisation service as well.

I dont understand why any cardholder would think that staying on the merchants page is the safest most secure way of processing a payment. We have thousands of merchants on our system and I cant believe that cardholders would trust that every merchants site is as secure as the PSP site would be. Additionally if you understand how 3DSecure works, the cardholder MUST, in any case, be redirected to their banks ACS("Authentication Control Server") so, if you cant get away from re-directing the browser why not redirect once, irrespective of the payment method, and let the payment take place in the environment that is built specifically for payment processing.

In the last few months VCS has made huge strides in providing the facility for our merchants to customize the VCS pages to look like their own.
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Posted by [[NO_DISPLAY_NAME]] on 21 May 2017 - 10:44pm
 
Hi Ardi I'm aga

Look sir I'm a teenager.......And I'm sitting with the impression to start a YouTube channel

I don't know are well updated with terms of YouTube but we can scroll through it..

It says you must have USD 100 for them to pay you.And also have 1000 subscribers to enable pay content

The other thing is YouTube is a company owned by Google and you don't get paid by YouTube you get paid by Google adsense

At adsense account it's were I should fill in all my bank account details

Now I'm in Namibia and as you said it's impossible for me to get the money directly to my Namibian bank account

So this is were (I prefer to use Peach payment) South Africa needs to come in

Meaning I should open a legal PayPal account in South Africa so that Peach Payments can make the bank transfer to my Namibian account or what explain this process to me

And how will the merchant account help me or come hand in hand with

I want the money that I will be getting from adsense (USD) to come to my Namibian account (NAD) what must I do

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Ardi's picture
Posted by Ardi on 23 May 2017 - 7:08am
 
Hello!

Peach Payments is a payment gateway. In other words, you will be able to use it to allow people to pay you with credit cards, and then receive that money in your local South African Rand-denominated bank account. The same can be done in Namibia using VCS. But this has nothing to do with redeeming cash from AdSense or Paypal into your account.

For PayPal, all you need is a South African FNB bank account. It is possible to link any paypal account with a South African FNB bank account. Then the mony from PayPal can go into your personal South African bank account. I am not sure if this is possible in Namibia.

For Adsense, they should be able to directly deposit to your Namibian OR South African bank account. So perhaps start by e-mailing Google and asking what payout options they have for Adsense. We still receive our Adsense payments directly to our South African bank account, to this day. Therefore I know this is possible.

Let me know if you have any other questions?
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Posted by [[NO_DISPLAY_NAME]] on 21 May 2017 - 11:00pm
 
Ardi it's me aga again

Look one more problem i can not receive my payments from adsense into my PayPal account. .....

Maybe you got an option

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Posted by [[NO_DISPLAY_NAME]] on 23 May 2017 - 6:37am
 
Just an update from Peach Payments on our fully localised solution for Namibia:

While there are still some boxes to be ticked before we can announce our solution to be live, we have continued to work on this and have also found very good partners in this process.

I appreciate Gordon's comments on here - I seriously hope that it won't take us 4 years overall. As mentioned, the process is not completely in our control.

With regards to the discussion about redirects: we maintain that the best user experience is to avoid any visible re-directs, which is even possible for payment flows that incorporate a full 3D-secure authentication. We have proven this with several of our leading customers in South Africa who have confirmed improved conversion rates and customer loyalty. Our recently launched new SDK for mobile applications has demonstrated that also in the context of the user experience on tablets and smart phones.

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