In 2022, online sales in the UK grew a whopping 36%! That’s the highest growth since 2007. People are spending more money online than ever before. Trust has been established, making online shops the go-to place for their needs.
However, if you want to benefit from this thriving market, you need a reliable payment gateway. Also, it must accept popular UK payment methods.
But which is the best online payment gateway for small businesses in the UK? In this article, we will help you figure out the right one for your business. Let’s begin:
What Is a Payment Gateway?
A payment gateway is like a bridge between customers and businesses. It collects and secures the payment information provided by customers.
Here’s how it works: The gateway checks if everything is correct when a customer enters their payment details, like card information. If it is, the payment goes through to the processor and then to your account.
But if there’s an issue, the funds stay with the customers. In short, the payment gateway acts as a middleman to ensure a safe and secure transaction between customers and businesses.
The best online payment gateways in the UK
There are many options for online payment gateways available for UK businesses. Each one has its own pros and cons. But don’t worry; we’ve done the research and found the best ones that are perfect for your small business in the UK.
Let’s take a closer look:
1. Revolut
The Revolut payment gateway is an excellent option for businesses as part of the Revolut Business suite. It offers a robust online payment solution that seamlessly integrates with websites, making the checkout process smooth for customers.
With support for multiple currencies and a unified dashboard, managing transactions is a breeze.
Top features
- Multi-currency support: Accept payments in various currencies.
- Unified dashboard: Manage all transactions from a single interface.
- Payment links: Generate links for easy payment requests.
- Fast settlement: Transactions are typically settled by the next day.
- Merchant API: Integrate with a comprehensive API for customization.
- E-commerce compatibility: Works with major e-commerce platforms.
- Security: Adheres to PCI DSS standards for secure transactions.
Accepted payment methods
- Cards: Visa and Mastercard, including international cards.
- Digital wallets: Apple Pay and Google Pay.
- Revolut Pay: Direct payments from Revolut accounts.
- Contactless: Tap to Pay on iPhone.
- QR codes: Accept payments via QR code scanning.
Usage fees
Revolut’s payment gateway fees are competitive and transparent:
- UK consumer cards: 1% + £0.20 per transaction.
- International and commercial cards: 2.8% + £0.20 per transaction.
- Revolut Pay: 1% + £0.20 per transaction.
- Bank Transfer: 1% + £0.20 per transaction.
There are no monthly fees. Therefore, it is one of the best online payment gateways for small businesses in the UK.
However, keep in mind that you need to be on one of the Revolut Business plans to access the payment gateway features. So, it’s important to consider your business needs before deciding.
Pros:
- Low transaction fees: Particularly for UK consumer cards.
- Next-day payouts: Faster than many competitors.
- Currency support: Accepts various currencies for global transactions.
Cons:
- Limited card acceptance: Only Visa and Mastercard are accepted.
- E-commerce platform restrictions: The checkout plugin is available for a few platforms only.
- Weekend rate markup: Exchange rates may include a markup during weekends.
Revolut’s online payment gateway is best for businesses looking for a straightforward, secure, and efficient online payment system with a global reach.
2. Stripe
Stripe is considered one of the best online payment gateway for businesses. It allows you to accept payments both online and in person. Acting as an intermediary, it helps you process and manage different payment methods securely and efficiently.
Stripe, founded in 2011, has gained popularity for its user-friendly interface and ability to handle various payment options. It’s a great choice for UK-based small businesses seeking a comprehensive payment solution.
Top features
- Global Reach: Accepts over 135 currencies and various payment methods for international transactions.
- Developer-Friendly: Offers robust APIs and developer tools for custom integration.
- Security: Advanced encryption and security measures to protect sensitive data.
- Instant Payouts: Instant payouts are available for eligible businesses.
- Subscription Management: Tools for handling recurring billing and subscriptions.
Accepted Payment Methods
Stripe supports a wide range of payment methods to cater to different customer preferences, including:
- Cards: Visa, Mastercard, American Express, and more.
- Digital Wallets: Apple Pay, Google Pay, and others.
- Bank Transfers: ACH, SEPA, and others.
- Buy Now, Pay Later: Options like Klarna and Afterpay.
- Local Payment Methods: iDEAL, Alipay, WeChat Pay, and more.
Usage Fees
Stripe’s pricing is transparent with a pay-as-you-go model:
- Online Transactions: 2.9% + 30¢ per successful charge for domestic cards.
- In-Person Transactions: 2.7% + 5¢ through Stripe Terminal.
- Additional Fees: For international cards, currency conversion, and ACH direct debit, among others.
Pros:
- Transparent Pricing: No setup, monthly, or hidden fees.
- 24/7 Support: Round-the-clock customer assistance.
- Customization: Highly customizable checkout flows for those with development skills.
Cons:
- Technical Expertise Required: May be challenging to customize without software development knowledge.
- Limited In-Person Functionality: Not as feature-rich for in-person transactions as other processors.
- No High-Risk Industries: Not suitable for businesses considered to be high-risk.
Stripe is an excellent choice for UK businesses that want to accept payments in various channels and regions. It offers a versatile and secure platform that is perfect for online businesses.
With its extensive features and global support, it ensures a smooth payment experience for customers. If you want to provide a seamless payment process, Stripe is the way to go.
3. PayPal
PayPal is a popular payment gateway that makes online money transfers easy. It’s a digital alternative to traditional paper methods like checks and money orders. PayPal is widely recognized and trusted.
It’s known for its user-friendly interface and has become a staple in UK e-commerce. With PayPal, customers and merchants can make transactions with ease and convenience.
Top Features
- Wide Acceptance: Recognized and trusted by consumers globally.
- Flexible Solutions: Offers solutions like Payflow Link and Payflow Pro for different levels of customization.
- Mobile Optimization: Ensures a smooth checkout experience on smartphones.
- Multiple Currencies: Supports transactions in over 25 currencies across 202 countries.
- PayPal Credit: Provides customers with the option to pay later.
Accepted Payment Methods
PayPal’s payment gateway accepts a variety of payment methods, including:
- Credit and Debit Cards: Visa, Mastercard, American Express, Discover.
- PayPal Balance: For users with a PayPal account.
- Bank Account: Direct bank transfers.
Usage Fees
PayPal’s fees for using their payment gateway are as follows:
- Payflow Link: No monthly fees, with $0.10 per transaction cost.
- Payflow Pro: $25.00 per month for unlimited checkout customization, plus transaction fees.
- Standard Online Transactions: 2.9% + $0.30 per transaction.
- International Transactions: Additional fees apply.
Pros:
- Recognizable Brand: Trusted by customers worldwide, which can increase conversion rates.
- No Setup or Monthly Fees: For the basic Payflow Link service.
- E-commerce Integration: Easily integrates with many e-commerce platforms.
Cons:
- Additional Fees: For international transactions and chargebacks.
- Lacking POS Features: Not as comprehensive for in-person sales compared to other services.
- Hardware Costs: Additional costs for physical card readers and other hardware.
PayPal’s payment gateway is one of the best online payment gateways for small businesses in the UK. It’s trusted, versatile, and offers a range of features to meet various needs.
4. Authorize.Net
Authorize.Net is a reliable payment gateway provider owned by Visa. It helps businesses accept credit cards and electronic payments easily.
They offer two options: an all-in-one plan that includes a merchant account and a payment gateway, and a gateway-only option. With Authorize.Net, businesses can accept payments online, in person, or through mobile devices.
It’s a versatile solution for accepting payments across different channels.
Top Features
Advanced Fraud Protection: Tailored tools and filters to protect against fraudulent activity.
Customer Information Manager: Simplifies the buying process for returning customers.
Digital Invoicing: Streamlines the billing and payment process.
Recurring Payments: Manages subscriptions and recurring billing.
Multiple Integrations: Allows for seamless integration with various platforms.
Accepted Payment Methods
Authorize.Net supports a wide array of payment options, including:
Credit Cards: Visa, Mastercard, American Express, Discover.
Digital Wallets: Apple Pay, PayPal.
Electronic Checks: For secure online check transactions.
Usage Fees
Authorize.Net’s pricing includes:
Gateway Fee: 25 dollars per month.
Transaction Fees: 10¢ + daily batch fee 10¢.
Setup Fees: No charge for setting up the gateway.
Pros:
Variety of Payment Types: Accepts multiple forms of payment.
Customer Support: Offers 24/7 customer assistance.
Straightforward Pricing: Transparent and predictable pricing structure.
Cons:
High Chargeback Fees: Additional costs for chargebacks.
Interface: Some users find the interface clunky.
Geographic Limitations: Not suitable for all countries.
If you strongly prefer robust eCommerce security, Authorize.Net is probably the best online payment gateway out there.
It offers a strong and reliable payment gateway that suits different businesses, from small startups to big companies.
5. GoCardless
GoCardless is one of the best online payment gateway that focuses on direct bank payments. It helps businesses collect one-time and recurring payments straight from customers’ bank accounts.
This simplifies payments, reduces administrative tasks, and boosts cash flow by automating payment collection.
Top Features
Direct Debit: Allows businesses to collect recurring payments directly from customer bank accounts.
Instant Bank Pay: Offers instant, one-off payments powered by secure open banking.
Integration: Seamlessly integrates with over 350 partner software like Xero and Sage.
Global Reach: Collects payments from over 30 countries with real exchange rate benefits powered by Wise.
Intelligent Retries: Automatically retries failed payments, recovering 70% on average.
Accepted Payment Methods
GoCardless processes payments as direct debits and does not require a debit or credit card; only a bank account with an account number or IBAN is needed. It accepts both one-time and recurring payments.
Usage Fees
GoCardless offers straightforward, low fees for businesses.
Setup fees: Totally free to set up.
Monthly charge: No monthly charge.
International payment fee: Per transaction is 2% plus $0.25
Pros:
Lower Processing Rates: Cheaper than credit card payments.
No Monthly Fee: For the basic account.
International Support: Extensive support for international payments.
Cons:
No Credit Card Services: Except through third-party providers.
Long Funding Times: No instant payment options.
GoCardless is great for businesses that depend on regular payments. It offers a budget-friendly and effective way to handle cash flow and reduce administrative work.
6. Amazon Pay
Amazon Pay is an online payment service that lets Amazon customers use their existing payment methods for purchases on other websites and apps.
It aims to simplify the checkout process, boost sales, and build customer trust by utilizing the familiar and convenient Amazon payment system.
Top Features
Seamless Checkout: Allows customers to use their Amazon account details for a quick and easy checkout.
Voice Shopping: Integrates with Alexa to enable voice-activated shopping experiences.
Fraud Protection: Offers Amazon’s fraud protection technology to secure transactions.
Global Reach: Supports international transactions with a wide range of currencies.
No Upfront Costs: There are no setup, monthly, or cancellation fees.
Accepted Payment Methods
Amazon Pay accepts a variety of payment methods, including:
Credit and Debit Cards: Visa, Mastercard, Discover, American Express, Diners Club, and JCB.
Amazon Store Card: Available for use with selected merchants.
Usage Fees
Amazon Pay’s fee structure includes:
Domestic Transactions: 2.9% + $0.30 per transaction.
Cross-Border Transactions: An additional 1% fee for payments made with cards issued outside the U.S.
Pros:
Convenience: Easy checkout for customers with Amazon accounts.
Customer Reach: Supports global customers and currencies.
Integration: Easy to integrate into e-commerce platforms like Shopify and WooCommerce.
Cons:
Reserve Policy: May delay payouts, especially for newer accounts.
In-Person Payments: Does not support in-person payment options.
Customization: Limited options for volume discounts or custom packages.
Amazon Pay can be considered the best online payment gateway for merchants looking to provide a familiar and secure checkout experience to their customers, especially those who are already Amazon users.
7. Fondy
Fondy is a flexible payment platform that helps businesses handle financial operations smoothly. It’s made to support growth on a local and global scale.
With Fondy, businesses can manage money, divide payments, and make payouts using just one API. The multi-currency accounts offered by Fondy make the payment process faster and easier.
Top Features
Multiplatform Payments: Integrates with websites, social media, and mobile apps.
Global Reach: Processes payments in over 150 currencies and accepts over 300 payment methods.
Local Language Support: Payment pages automatically default to the customer’s local language.
One-Click Payments: Simplifies the acceptance of payments on various platforms.
Instant Access to Funds: Instant settlements into Fondy accounts with multi-currency support.
Accepted Payment Methods
Fondy supports a wide array of payment methods, including:
Major Cards: Visa, MasterCard, Maestro, and more.
E-Wallets: Google Pay, Apple Pay, and others.
Local Payment Methods: iDEAL, Blik, giropay, SOFORTbanking, and more.
Usage Fees
Fondy offers clear pricing with no hidden costs. Fees for transactions are as follows:
Domestic Debit/Credit Cards: 1.4% + £0.20 or €0.25.
EEA Debit/Credit Cards: 2% + £0.20 or €0.25.
International Debit/Credit Cards: 3.2% + £0.20 or €0.25.
Pros:
Flexibility: Offers flexible payout options and instant settlements.
Cash Flow Management: Aids such as split payments and instant payouts.
Cons:
Limited support: Fondy has limitations in supporting certain payment methods and currencies.
Complex Pricing Structure: Fondy’s pricing structure may be complex, particularly for small businesses.
Limited Geographic Coverage: Currently, Fondy serves clients exclusively in the UK and EU.
Fondy stands out as one of the best online payment gateway for small businesses in the UK. Due to its versatile features, it is suitable for various business needs, providing flexibility and control over financial operations.
Deciding on the best online payment gateway for your small business in the UK
After reviewing our list of the best online payment gateways in the UK, it’s time to decide which payment gateway is the right fit for your small business.
Consider the following factors to help you make an informed choice:
1. Identify your business needs
Think about what kind of payments your business needs, like recurring payments.
2. Compare pros and cons
Compare the pros and cons of each payment gateway based on your business needs. Take into account factors such as ease of use, available features, and customer feedback.
3. Assess features
Compare the features offered by each payment gateway. Make sure they have features like mobile payments, international transactions, and fraud protection.
4. Consider pricing and fees
Look for transparency in pricing, including transaction fees, monthly charges, and any additional charges. Ensure it fits your budget and expected volume of transactions.
5. Evaluate integration capability
The payment gateway should integrate seamlessly with your existing website or e-commerce platform. To avoid integration challenges, ensure it is compatible with your technology stack.
If your preferred payment gateway is incompatible, you can get assistance from an eCommerce development company for easier integration.
6. Assess security and reliability
Make sure the payment gateway is secure and reliable. To protect your customers’ sensitive data, look for encryption, PCI compliance, and fraud prevention features.
7. Check for scalability
Consider the future growth potential of your business. Make sure the payment gateway can handle growing transactions and expand as needed.
8. Check their customer support
Select a payment gateway that offers reliable customer support. Ensure they provide support via different channels like phone, email, and live chat.
Recommended Reading for you: How to Avoid Costly Mistakes in eCommerce
In Conclusion
Selecting the best online payment gateway is crucial for your business to succeed and grow online. It’s essential to make a thoughtful decision so your customers can have a seamless and secure payment experience.
Assess the top options we’ve explored and choose one that suits your business needs and customer preferences.
