Comparing The Best Payment Gateways In The UK In 2024

What Is A Payment Gateway?

An online payment gateway serves as a virtual intermediary, ensuring the security of both parties involved in the financial transaction. When customers input their payment details, such as card information, the payment gateway verifies this information and encrypts sensitive data, such as the card number. Subsequently, it transmits this encrypted data to the merchant's bank for authorisation. The bank then decides whether to approve or decline the transaction. Payments are only finalised after the payment gateway receives approval from the cardholder's bank.

How To Choose A Payment Gateway Provider

When seeking a reliable and cost-effective payment gateway solution for your business, there are several things to consider. Below, we outline key factors that we recommend taking into account when evaluating payment gateway providers.

Fees

In the UK, payment gateways usually offer two pricing models: subscription plans and pay-as-you-go plans. With subscription plans, you pay a fixed monthly fee along with lower transaction fees. On the other hand, pay-as-you-go models don't have monthly fees, but may charge more for each transaction.

To determine the best model for your business, consider factors like sales volume, transaction size, and growth projections. Generally, subscription plans are suitable for businesses with consistent and high sales, while pay-as-you-go models are better for those with lower or irregular sales volumes.

Additionally, consider other fees, such as setup fees, chargeback fees, refund fees, international payment fees, and potential hidden charges. Consult with customer support to address specific questions and concerns regarding fee breakdowns, application procedures, volume discounts, and eligibility criteria.

Security

Robust security measures are essential to protect both businesses and customers from data breaches, fraud, and other cyber threats. Payment platforms implement various security measures, including encryption, authentication protocols, and fraud detection systems, to safeguard cardholder’s data and ensure secure transactions. Encryption utilises algorithms to convert data into a coded format that can only be deciphered by authorised parties. When it comes to proactive fraud protection measures, they include real-time transaction monitoring and instant alerts to detect and respond to any suspicious activities promptly.

Integration

An important aspect to consider when choosing a payment gateway is its compatibility and ease of integration with your existing systems, such as your website, online store, CRM, point-of-sale (POS) systems, and other e-commerce platforms. Common integration methods include:

• Application programming interfaces (APIs): This is a set of protocols that allows different software programs to exchange data with your platform. It simplifies the process for developers by handling user requests, sending them to the service provider and delivering the results back to the user.
• SDK (Software Development Kit): This is like a toolbox for developers, containing code libraries and resources. Developers can use these tools to customise the functionality of the payment gateway to suit their specific requirements.

Reporting

Reporting features provide valuable insights into transactional data and help track financial performance, therefore it’s important to consider this factor when choosing the best UK payment gateway. Reporting features typically include detailed transaction records, sales summaries, chargeback reports, and revenue analytics. These reports allow businesses to monitor transaction volumes, identify trends, and assess the success of marketing campaigns or product launches. Additionally, reporting tools may offer customisable dashboards and real-time data updates, enabling businesses to have access to the most current information.

Currency Support

It is imperative not to miss out on international opportunities due to limitations in payment methods or currencies. Ensure that your chosen payment provider in the UK accommodates various card types and currencies, facilitating seamless transactions and fostering business growth. By supporting various currencies, businesses can offer a seamless purchasing experience to customers regardless of their location. Additionally, currency support allows businesses to mitigate currency conversion costs and reduce the risk of fluctuations.

Features

The best UK payment gateway should have a diverse array of features aimed at streamlining the payment process for both businesses and customers. These features typically encompass secure payment processing, accommodating various payment methods such as credit cards and alternative options like Apple Pay. What is more, some advanced functionalities may include recurring billing, subscription management, and invoicing which cater to businesses of all sizes, from startups to large enterprises.

Reliability

Reliability in the context of payment gateways involves adherence to industry standards, particularly the Payment Card Industry Data Security Standard. Companies processing card payments must prioritise compliance with PCI DSS, a global security benchmark for entities handling cardholder data. This standard establishes fundamental security measures to safeguard consumers and prevent fraud and data breaches within the entire payment ecosystem. Before committing to any agreements, it is imperative to verify that your chosen online payment gateway adheres to PCI DSS requirements.

Customer Service

Challenges such as disputes, refunds, or unexpected fees may arise. A trustworthy payment service provider should offer a responsive support team capable of promptly addressing and resolving these issues. They should also provide various contact channels, such as phone, email, and live chat. Efficient customer service ensures prompt processing and resolution of any issues.

Best UK Payment Gateway Provider Comparison

In this UK payment gateway comparison below, we will evaluate some of the top payment gateway providers for business in the United Kingdom, examining their features, pricing, and suitability for different business needs.

Revolut

• Acceptance of 25+ currencies
• Segregated currency accounts
• A unified dashboard for managing finances
• Payment links
• Accessibility of API, widgets, and plugins tailored for merchants' needs
• Seamless integration with popular e-commerce platforms like Woocommerce, Magento, etc.

Revolut, headquartered in London and licensed in Lithuania, operates as a neobank within the European Union and the UK. Offering a range of financial solutions, Revolut enables customers to conveniently handle their finances through a unified app. It allows facilitating spending, saving, investing, borrowing, and money management for both personal and business purposes. Among its business offerings is the Revolut payment gateway for UK customers, designed to streamline the checkout process for merchants in the United Kingdom. Revolut accepts a variety of payment methods, including credit and debit cards, digital wallets and QR payments.

Pros

• Low transaction fees
• Convenient invoicing tool
• Efficient e-commerce integration
• Fast and easy setup

Cons

• Lack of comprehensive reporting capabilities
• Limited country support
• No advanced fraud prevention features

Square

• Numerous payment solutions, including credit and debit cards, ACH bank payments, digital wallets
• Fast transaction processing time
• Support for EMV chip cards and NFC payments
• No monthly fees, setup fees, or PCI compliance fees

Square has established itself as a leader in mobile payments, catering to the increasing demand for convenient and straightforward online transactions. Its platform seamlessly integrates with mobile devices, offering businesses a comprehensive solution for accepting payments. In The UK payment gateway by Square is particularly well-suited for small businesses, offering affordable processing costs and a hassle-free setup process.

Pros

• Quick set-up and ease of use
• End-to-end solution for businesses of all sizes, with advanced features and integrations for managing sales
• Advanced security thanks to PCI compliance, data encryption and transaction monitoring

Cons

• Limited reporting capabilities
• Additional fees for some advanced functionalities

Worldpay

• Acceptance of 300+ payment methods in 126 currencies
• Flexible pricing plans
• Customisable checkout pages due to API-hosted website integration
• Free next-business-day
• Robust security measures, including FraudSight™ and 3DS Flex™

Worldpay offers comprehensive merchant gateway solutions for online, in-store, and phone transactions, making it one of the largest payment service providers in the UK. Integration options include both a hosted payment page and API-hosted website integration. With Worldpay, businesses have the flexibility to choose between pay-as-you-go options and monthly subscription plans, accommodating diverse needs. Businesses can customise their checkout pages using the API-hosted version to align with their brand image.

Pros

• Extensive payment methods
• Seamless payment processing across multiple channels, including online, in-store, and over the phone
• Fast transaction settlement speed
• Implementation of stringent security protocols and fraud prevention tools
• PCI DSS compliance
• Dedicated customer support

Cons

• Contract length and termination fees associated with services
• May not be suitable for smaller businesses due to extensive contracts

Stripe

• Supports a diverse array of payment types and over 135 currencies
• Facilitates direct payments between third-party businesses and customers, beneficial for dropshipping firms
• Enables customisation of checkout forms for enhanced aesthetics
• Offers integration with various third-party systems, including shopping carts, invoicing platforms, analytics tools, email systems, etc.

Stripe is highly recommended for businesses seeking to manage worldwide sales effectively, thanks to its comprehensive global payment features. It serves as a complete payment solution, providing both an online payment gateway and a merchant account. UK’s businesses have the option to utilise Stripe's hosted payments page, created with code, or integrate Stripe Payments directly into their ecommerce websites with ease.

Pros

• Competitive transaction rates
• Customisable checkout design
• Absence of monthly fees

Cons

• Potential settlement delay of up to 7 days, posing challenges for businesses with fluctuating cash flow
• Application of a 2% conversion fee on transactions made in currencies other than the checkout's default

PayPal

• Wide-reaching customer base exceeding 100 million users globally
• Versatile payment acceptance options including online, in-person, via QR code, phone, and email
• Ability to collect payments through social media and messaging platforms
• Support for recurring payments and subscription models
• Compatibility with point-of-sale card readers

PayPal is a widely recognised eCommerce payment gateway that accepts various payment methods, including debit/credit cards, PayPal wallet, PayPal credit, and over 10 local payment methods across more than 100 currencies from 200+ markets. No surprise, it’s one of the most widely used payment gateways in the UK. Integration with PayPal is straightforward, offering options like redirect pay buttons for individual items or API-hosted checkout integration directly into your website.

Pros

• Global presence with extensive market coverage and support for multiple currencies
• Seamless integration with platforms
• Developer-friendly API
• A Seller's Protection Program for eligible merchants
• No monthly fees
• Versatile payment options

Cons

• Complex fee structure
• High transaction fees
• Lengthy settlement duration
• Vulnerable to phishing and scams

Opayo (SagePay)

• A fully customisable payment gateway
• Supports over 100 currencies
• Seamlessly integrates with offline store payments like Shopify
• A cost-effective solution for businesses, especially those with lower sales volumes
• Absence of transaction fees for the first 350 sales each month

Opayo, formerly known as Sage Pay, stands out as an excellent choice for businesses seeking customisation tools for their payment gateway. Opayo offers a payment gateway for UK customers, tailored to meet the needs of small businesses and large corporations alike. Users have the flexibility to create a checkout system that aligns with the look of their website. With a flat-rate monthly fee of £32, Opayo offers a cost-effective solution, especially for businesses with lower sales volumes. The absence of transaction fees for the first 350 sales each month is particularly beneficial for businesses selling high-value items.

Pros

• Checkout customisation
• High PCI compliance rating
• Affordable pricing structure and tailored packages
• Zero transaction fees for the first 350 sales

Cons

• Additional charges for support calls to Opayo helpline
• 12-month contract commitment

Adyen

• Acceptance of diverse payment methods
• Streamlined account setup process
• Detailed payment data through analytical reports, metrics like revenue and authorisation rates
• Seamless integration with websites or mobile apps via provided APIs

Adyen is a popular UK payment provider that integrates payments, data analytics, and financial management into a unified software product. It caters to merchants of all sizes, enabling them to accept e-commerce, point-of-sale, and mobile payments. Adyen employs a pricing model based on a fixed processing fee in addition to fees determined by the chosen payment method for each transaction. The fixed processing fee is currently set at £0.11 per transaction.

Pros

• Access to over 150 currencies
• Easy setup process
• APIs and developer-friendly tools for easy integration
• Fixed transaction fee

Cons

• Limited customisation
• Complex fee structure

Amazon Pay

• Integration with over 200 eCommerce platforms
• Utilisation of existing payment details from the user's Amazon account for secure and hassle-free checkout
• Quick and straightforward setup process
• Built-in fraud detection mechanisms

Amazon Pay is an innovative payment solution ideal for startups. By leveraging this payment gateway in UK, businesses can facilitate faster checkouts by utilising the information already stored in customers' Amazon accounts. Integration is straightforward and accessible through the Amazon website for businesses with existing accounts. A notable advantage of Amazon Pay is its capability to complete payment processing directly online without having to leave the site during transactions.

Pros

• Absence of monthly fees
• Quick checkout
• Familiar dashboard interface
• Seamless integration
• One-click purchasing feature

Cons

• Customers must have an Amazon account to make payments
• Limited customisation options compared to some other payment gateways
• No support for PayPal payments

2Checkout

• Serving more 180+ countries
• Recurring billing and tokenized transaction features
• Unified checkout page for efficient shopping cart management
• Customisable shopping cart to align with store themes and layouts
• Support for diverse online payment methods
• Multilingual customer support

2Checkout, now under the Verifone umbrella, is an optimal choice for businesses seeking to facilitate global payments effortlessly. For merchants venturing into international markets, this payment gateway provider in the UK offers an extensive reach, covering over 180 countries. Their platform simplifies the process of accepting payments from customers worldwide, supporting various local payment methods such as credit cards, PayPal, wire transfers, and even cryptocurrencies.

Pros

• Global credit card transaction processing capabilities
• Wide array of payment options, encompassing major credit cards and e-wallets
• No binding contracts or termination charges
• Competitive transaction fees based on sales volume
• Absence of monthly fees, setup fees
• PCI Level 1 certification

Cons

• Relatively higher fees compared to competitors
• Reports of subpar customer service

Final Thoughts

Summing up, there are numerous payment gateway providers in the UK, each offering unique benefits for diverse business needs. We have provided you with a comprehensive guide on how to choose a suitable provider for your business. Additionally, we have also provided you with the UK’s payment gateway list along with concise overviews of each provider so that you may pick the best option for specific needs and preferences.