Today's customers want to pay fast, securely, and with their preferred payment method. They could pay by credit card on an online retailer, pay using their mobile money facility, pay an invoice via a link, or tap the card at a retail outlet.
For businesses, it requires more than a simple bank account. They require a payment processing network that can seamlessly integrate and link customers, merchants, financial institutions, and payment networks into a single process.
Pesapal offers online and offline payments that enable businesses to accept, monitor, and manage payments. With online payment gateways, payment links, electronic invoicing, point-of-sale terminals, APIs, and e-commerce plugins, companies can offer a seamless payment experience across various sales channels.
Payment processing systems like Pesapal are the technologies and services that enable a business to receive electronic payments from customers. They safely move payment details between the customer, merchant, payment gateway, processor, card network, mobile-money provider and financial institution. The system then sends out whether the transaction has been approved, declined or is still being processed.
A complete payment processing system may include:
A company can use a single provider to handle a variety of payment methods and transaction records in one place.
While electronic payments just seconds to complete, there are several steps that occur behind the scenes.
The customer chooses how they want to pay. Depending on the business and country, this may include:
A good payment experience presents relevant options without making the checkout page difficult to understand.
The customer enters payment details or confirms the payment via their mobile money account, banking app, or card issuer. The payment gateway encrypts the data as it is sent to the payment processors.
The payment provider communicates with the financial network or the mobile money provider. In certain cases, the consumer might be required to perform an additional authentication step, e.g., entering an OTP for 3D Secure gateways. This helps to ensure that someone using a payment card is allowed to pay with it.
The financial institution or payment provider returns a transaction response. The business may receive a status such as:
Your online store should not confirm an order until it is sure that the payment status has been verified using its payment integration.
If payment is successful, it will appear in the merchant's payment dashboard or the linked company system. The business can then complete the order, provide a receipt, record the sale in its books, and reconcile it.
The payment provider transfers the collected funds to the merchant according to the applicable settlement arrangement. The exact settlement period, withdrawal method and fees may vary depending on the country, payment method and merchant agreement.
The quality of a payment system can directly affect customer experience, operational efficiency and revenue.
A customer may abandon a purchase when:
Reliable payment processing systems help reduce these problems by making it easier for customers to complete transactions.
They also help businesses:
At Pesapal we bring together several payment tools that businesses can use according to their size, industry, and sales model.
Its business solutions include:
Our online payments solutions allow businesses to offer multiple payment options, process local and international payments, monitor sales reports and serve online customers. Available payment methods and features can differ by country.
An online payment gateway allows customers to pay directly through a business website, ecommerce store, application or booking platform.
When Pesapal is integrated into a website, customers can select an available payment method and complete the transaction through the secure checkout flow.
Pesapal supports payment options that can include:
The exact options shown to a customer depend on the merchant’s country, account configuration and integration. Pesapal’s gateway that brings together local mobile-money methods and major card networks for online and over-the-counter payments.
A properly integrated gateway like Pesapal can help a business:
This makes online gateways important components of modern payment processing systems.
Not every business has an e-commerce website. Some businesses like tour and travel agencies sell primarily through WhatsApp, email, social media, telephone orders or direct customer relationships.
A payment link gives these businesses a simple way to request payment online.
With a Pesapal payment page, a business can create a branded payment link and share it with a customer. The customer opens the link, selects an available payment method and completes the transaction online.
Pesapal’s payment-page service allows merchants to accept credit cards, debit cards, mobile money and bank transfers. Links can also be shared with customers through channels such as WhatsApp, and successful transactions can be viewed through the Pesapal Dashboard.
Payment links can be useful for:
Payment links can also reduce the need to send customers mobile-money instructions manually or ask them to enter long reference numbers, which in some cases leads to errors.
Invoices are essential for businesses that provide services before payment, work with corporate customers, or collect money according to agreed billing dates. Pesapal’s online invoicing service allows businesses to create branded invoices and send them to customers through email. Customers can then use the available online payment options to settle the invoice.
The invoicing platform supports functions such as:
These features can help businesses replace manual paper invoices with a more organized digital payment process.
Online invoicing is suitable for:
By connecting invoicing and payment collection, businesses can spend less time following up on unpaid bills.
Physical stores, restaurants, hotels and service locations need payment processing systems that also work at the point of sale.
Pesapal provides POS machines that can accept card and mobile-money payments. In Kenya, for instance, Pesapal’s POS supports M-Pesa as well as Visa and Mastercard payments on compatible devices. The company offers smart, connected and mobile POS options for different operating environments.
Customers can use supported methods such as:
An integrated POS system can help businesses:
POS payment processing is especially valuable for businesses with high transaction volumes or several employees collecting payments.
Many businesses no longer operate on one sales channel. A restaurant may accept payments at the counter, through its website, and through remote orders; on the other hand, hotels may receive walk-in card payments, website bookings, payment-link deposits, and corporate invoice payments, while a retailer may sell from a physical shop while also receiving ecommerce orders.
Using disconnected payment processing systems for every channel can create:
A coordinated payment setup gives the business a clearer view of how customers pay across its different channels.
Pesapal offers online payments, POS terminals, electronic invoicing, payment pages and industry integrations that businesses can combine according to their operational requirements.
Mobile money is an important payment method for businesses serving customers across African markets.
Customers may prefer mobile money because it is widely used in East Africa for its acceptability and convenience. For merchants, integrating mobile money into a formal checkout can reduce the need to confirm transactions manually using messages or screenshots.
Depending on the market, Pesapal integrations may support services such as:
Pesapal’s official e-commerce extensions support various combinations of mobile money, mobile wallets, and card payments depending on the country and platform.
Integrated mobile-money processing can:
The available mobile-money networks should always be confirmed for the merchant’s specific country.
Credit and debit card processing allows businesses to serve customers who prefer cards or who may be paying from outside the merchant’s local mobile-money network. Pesapal supports major card brands, including Visa, Mastercard and American Express, through relevant online integrations.
Card processing can be valuable for:
Businesses should ensure that their checkout process is mobile-friendly, secure and clear about the amount and currency being charged.
Security is one of the most important considerations when comparing payment processing systems. A payment provider may handle sensitive cardholder information, payment authorizations and transaction records. Businesses should therefore choose systems that apply recognized security controls.
Pesapal states that it is:
PCI DSS is an industry security standard for organizations that store, process, or transmit cardholder data. PCI PIN requirements focus on protecting personal identification numbers throughout the card-processing environment.
Using a certified provider does not remove every responsibility from the merchant.
Businesses should still:
Payment security works best when the provider and merchant both apply appropriate controls.
Businesses with ecommerce websites and custom applications need payment processing systems that can connect with their existing technology.
Pesapal provides an API and tested plugins for integrating payments into websites and ecommerce platforms. Our official documentation includes resources for platforms such as WooCommerce, Shopify and Magento. Custom-built applications can use Pesapal API 3.0, which uses REST principles and JSON-formatted requests and responses.
A plugin can be suitable for businesses that:
An API integration may be more suitable when a business:
Developers should test authentication, order submission, redirects, callbacks, Instant Payment Notifications and transaction-status queries before enabling live payments.
Some businesses collect payments regularly rather than through a single purchase.
Examples include:
Pesapal API 3.0 includes support for recurring or subscription-based payment models. In these arrangements, customers authorize a business to collect payment according to an agreed schedule.
Before implementing recurring payments, a business should clearly communicate:
The merchant should also test recurring workflows carefully before using them with real customers.
Receiving a payment is only one part of the process. A business must also identify which customer paid, connect the payment to the correct order, and confirm that the amount and currency are correct.
Pesapal’s online business tools provide access to transaction reports through the merchant dashboard. Its online-payment offering is designed to bring transactions into one place so businesses can monitor activity and reconcile collections.
Useful transaction information may include:
Accurate reports can help a business reduce accounting errors, investigate disputed transactions, and understand how customers prefer to pay.
Payment Processing Systems for Different Industries
At Pesapal we support a wide range of industries that include hotels, restaurants, nightclubs, travel companies, ecommerce retailers, airlines, ticketing businesses, utilities and internet-service providers.
Ecommerce and retail
Retailers may need:
Hotels and hospitality
Hotels may need:
Pesapal also provides Reserveport booking solutions intended to help accommodation businesses manage direct online bookings and accept multiple payment options.
Tours and travel
Travel companies may collect:
Pesapal’s travel marketplace tools support online travel-package sales, reporting and instalment options for participating businesses.
Restaurants and cafés
Restaurants may combine:
Professional services
Consultants, agencies and contractors may rely more heavily on:
The best system is not necessarily the one with the longest feature list. It is the one that matches the business’s customers, markets, sales channels and operational requirements.
Consider the following factors.
The exact onboarding process can vary by country and business type, but the general steps are:
Provide the required business and contact information.
Submit the requested registration, identification, banking and compliance documents.
Choose from options such as:
Add business information, settlement details, branding and relevant payment settings.
Install a supported plugin, create a hosted payment page or connect through the Pesapal API.
Verify successful, pending and failed transactions. Test redirects, payment notifications, transaction-status checks and order updates.
Move to the production environment after completing the required verification and integration tests.
Review payment activity, reconcile orders and investigate unsuccessful or unusual transactions.
What is a payment processing system?
A payment processing system is the technology and infrastructure used to transmit, authorise, record and settle electronic payments between customers and businesses.
Is Pesapal a payment processing system?
Pesapal provides payment gateway and processing solutions that allow businesses to accept online, mobile-money, card, and point-of-sale payments. It also offers payment links, online invoicing, APIs, plugins, and transaction-reporting tools.
Which payment methods does Pesapal accept?
Depending on the country and merchant setup, available options may include mobile money, Visa, Mastercard, American Express, debit cards, credit cards, mobile banking and bank transfers. Merchants should confirm the specific payment methods available in their market.
Can a business accept payments without a website?
Yes. A business can create a Pesapal payment page or payment link and share it with customers through WhatsApp, email or another communication channel.
Does Pesapal support ecommerce websites?
Yes. Pesapal provides plugins and integration guidance for ecommerce platforms, including WooCommerce, Shopify and Magento. It also offers an API for custom websites and applications.
Can Pesapal process both online and in-person payments?
Yes. Pesapal provides online payment services and point-of-sale machines. The exact services and supported payment methods vary by country.
Is Pesapal secure?
Pesapal states that it is PCI DSS Level 1 certified and PCI PIN compliant and that it uses bank-level security measures to protect payment transactions.
Can Pesapal be used for recurring payments?
Pesapal API 3.0 supports recurring or subscription-based payment models for qualifying integrations.
With Pesapal, businesses can combine online checkout, mobile-money acceptance, card payments, payment links, electronic invoices, POS terminals and website integrations according to their needs.
Whether you operate an e-commerce store, hotel, restaurant, travel company, professional service or physical retail outlet, we have the right payment setup that solves your needs:
Choose payment processing systems that fit the way your customers prefer to pay today while giving your business the flexibility to expand into new channels tomorrow. As discussed, Pesapal is leading the way in this.
