Wales were beaten by South Africa in their cup semi-final in the IRB Sevens at Murrayfield before the Springboks beat Australia 36-35 in the final.
Alex Cuthbert and Kristian Phillips put Wales ahead in Edinburgh before Bernado Botha, Kyle Brown and Paul Delport put South Africa in control.
Cuthbert's late try and Warren Davies' kick was not enough as Wales lost 22-19 after beating France in the quarters.
Adam Thomas and Jevon Groves scored as Wales defeated the French 13-10.
The Welsh qualified for the cup tournament after topping Group B following wins over England, Portugal and Spain on Saturday in the Edinburgh leg of the Sevens series.