Brother Li from Yiwu, who sells to the South African market, makes over 200,000 rand a month on Takealot. But every time he withdraws funds, it’s a headache: the money first goes to Payoneer, then is converted and transferred back to China, and with all the fees deducted along the way, he ends up with nearly three percentage points less in his account.

When it comes to receiving payments, on the surface it seems like a matter of fees, but in reality, it’s about choosing the right approach. Takealot’s domestic and cross-border stores use completely different payment methods—one wrong move, and your profits are wiped out.

01

Differences in Payment Processing for Two Types of Takealot Stores

Takealot offers two business models: domestic stores and cross-border stores. Domestic stores require a South African company or a local tax ID, so the entry barriers are high, but they offer better traffic and trust. Cross-border stores are more seller-friendly for Chinese sellers, but the payment collection channels are relatively limited.

Cross-border stores typically use third-party payment providers partnered with the platform by default, most commonly Payoneer. Buyers pay in rand, the platform settles the payment into the seller’s Payoneer USD account, and the seller then converts the currency and withdraws the funds on their own. The entire process involves currency conversion and platform fees.

There are more options for local businesses. You can receive payments through corporate accounts at South African banks such as FNB and Standard Bank, or transfer rand directly back to China via cross-border payment service providers. The fees vary significantly depending on the method used.

02

A Comparison of Four Common Payment Collection Channels

Option 1: Payoneer (Most Commonly Used for Cross-Border Stores)

Pros: Quick setup, well-established integration with the Takealot platform, and support for direct currency conversion to domestic personal or corporate accounts. Disadvantages: The exchange rate is based on Payoneer’s internal rate, which is typically 1% to 2% lower than the bank’s mid-market rate; an additional fee is charged for withdrawals to corporate accounts. The total cost is approximately 2% to 3%.

Option 2: FNB, a South African bank, + cross-border money transfer

Suitable for sellers with local companies in South Africa. FNB is one of South Africa’s largest banks. Once the rand is received, funds are transferred via wire transfer to a domestic or Hong Kong account. Bank wire transfer fees are transparent, but the exchange rate and intermediary bank fees must be negotiated separately. The total cost ranges from approximately 1% to 2%, with greater cost savings for larger transactions.

Option 3: Cross-border payment service providers (XT, LianLian, etc.)

An increasing number of service providers now offer South African rand payment processing. Sellers link the local accounts provided by these service providers to their local South African stores, and once the rand is received, it is converted into RMB through the service provider’s platform. The combined fee rate is typically within 1%, and funds are credited quickly.

Option 4: Transfer via a Hong Kong corporate account

Suitable for sellers with a Hong Kong corporate structure. After Takealot’s local store receives payments into a local South African bank account, the funds are transferred to the Hong Kong company’s account as trade proceeds and then returned to the mainland through compliant channels. The advantage is that it offers significant scope for capital retention and tax planning; the disadvantage is that the structure is complex and compliance requirements are stringent.

03

What Should You Keep in Mind Regarding Foreign Exchange Compliance?

No matter which route is taken, for funds to be repatriated to China legally, three key elements are essential: a genuine trade basis, a complete chain of documents, and a compliant entity for foreign exchange settlement.

A genuine trade background is characterized by consistency among the three flows: orders, logistics, and payment. Takealot’s order records, shipping documents, and platform settlement statements must all be retained.

A complete chain of documents includes the purchase contract, invoices, customs declaration forms or shipping documents, platform sales reports, and foreign exchange settlement slips. These documents are required in the event of inquiries from banks or tax authorities.

Entities eligible for compliant foreign exchange settlement may include domestic companies, Hong Kong companies, or qualified individual business operators. The foreign exchange policies and tax burdens applicable to these different entities vary, so a one-size-fits-all approach is not appropriate.

If you use a third-party payment service to directly convert foreign currency into your personal bank account, frequent small-amount transactions may trigger the bank’s risk control measures. We recommend that once your monthly receipts exceed a certain threshold, you use your company’s account to go through the standard foreign exchange conversion process.

04

How to Choose the Most Cost-Effective Option

If you're just starting out and your monthly sales aren't very high, a cross-border store paired with Payoneer is the most hassle-free option. Once your monthly revenue stabilizes at 100,000 rand or more, you should start comparing service provider fees.

If you have a South African local company or are planning to register a local business, you should prioritize using a cross-border payment service provider or an FNB wire transfer. The former offers low fees and fast processing times; the latter is suitable for large transactions or situations that require a high level of banking credibility.

If you have a Hong Kong company or a mainland export business, you can set up a payment flow where “a local South African company receives payment → Hong Kong company → mainland China,” balancing compliance and capital efficiency. However, this structure must be planned before launching the business, as making changes afterward is costly.

To sum it up in one sentence: For small businesses, it’s all about the rates; for large businesses, it’s about the structure; and for the long term, it’s about compliance when expanding overseas.

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