Looking for an online payment system in the UK? Well there have never been more choices available than there are right now.
Below we look at 11 of the most popular and easy to use options available for UK businesses. However, if you’re looking for the cheapest option you may want to get quotes from us here or visit Cardswitcher where you can find some providers offering transaction rates as low as 0.29% for Debit cards & 0.85% for credit cards.
1. Paypal Online Payments
Paypal is likely one of the first names you think of, when you think online payments. And for good reason, they claim that over 20 million UK shoppers use PayPal each year in the UK and that 7 million businesses worldwide use their platform to accept payments.
They are also one of the easiest to get started with, especially if you already have a Paypal account. However, be aware that their fees may not be the cheapest out there.
Paypal Fees For Selling Online:
- Transaction Fees from: 1.9% + 20p per transaction (sales volume of up to £55,000 per month) up to 3.4% + 20p per transaction (sales volume under £1,500 per month). Note they also offer bespoke pricing options for even larger businesses.
- Monthly Fees: Free (Web Payments Standard or Express Checkout) or £20 per month (Web Payments Pro)
- Customers can pay you with their PayPal account directly
- Mobile optimised checkout
- Built-in fraud protection
- Accept international payments
- Web Payments Standard can be implemented with no advanced technical skills
- Fees can be very high for merchants with low sales volumes.
- Web Payments Standard may look a little amateurish and not the most professional (note they do offer other options for a more professional looking solution)
- Does not get the best reviews on Trustpilot (see here and here)
Shopify is currently the most popular ecommerce platform in the UK. Unlike Paypal, they offer absolutely everything you need to get started running an online business from web hosting to payment processing to seamless integration with other sales channels such as Amazon and their own POS.
They’re also really easy to get started with an even offer a free 14 days-trial with no credit card required. Arguably this makes them the easiest solution on the list, but simialr to Paypal they are not the cheapest.
Shopify Fees For Selling Online:
- Shopify Payments Transaction Fees: Between 2.2% + 20p (Basic) to 1.6% + 20p (Advanced)
- Monthly Fees: $29 (Basic) to $299 (Advanced) – note this includes Website, blog and free SSL certificate.
- External Payment Gateway Fee (if not using Shopify Payments): 2.0% (Basic) to 0.5% (Advanced)
- Includes everything you need to an online business up and running
- Can get started free for 14 days with no credit card required
- Shopify Payments fees are very competitively priced for online payments
- Offers a range of 100+ professional themes
- Abandoned checkout recovery
- Monthly fees after 14 days if you want to keep using their service.
- Additional Transaction fees for using alternative payment gateway.
- Does have some poor reviews on Trustpilot (here and here)
Get Started: Click To Visit Shopify Website & Start 14-Day Free Trial (No CC required)
3. WorldPay Online
Worldpay is by far the largest payment processing company in the UK, handling over 40% of all card transactions. If you want to accept cards, they likely have a solution for you.
In terms of accepting card payments online they offer:
- Online Payment Gateway: Payments in over 116 currencies and allows you to accept all major credit and debit cards as well as PayPal.
- Online Merchant Account: All your customer payments go straight into this account, which they will then settle into your bank account.
- Pay By Link: Secure online payments without needing a website
Worldpay Online Fees
- Pay As You Go: Online set-up fee £25, 10p per transaction gateway fee, transaction authorisation fees apply.
- Fixed Monthly: Monthly package fee from £49.99 includes transactions up to set threshold and authorisation fees.
- Standard: Monthly online payments gateway fee of £19.95, 10p per transaction gateway fee, PCI annual managment fee £29.99
- Pay By Link: £9.95 per month
and separate Debit & Credit transaction rates. Note: Transaction authorisation fees apply.
Transaction % rates based on monthly card turnover.
- Flexible pricing plans
- Accept all major credit and debit cards as well as PayPal in up to 116 currencies
- Secure payments with fraud screening to help protect you and your customers
- Set up recurring payments and subscription-based payment plans for your customers
- Gets a 4.6 out of 5 rating on Feefo
- Do not display their transaction fees publicly as these depend on volume and business type. However, you can easily request a quote.
- Not a complete ecommerce solution.
- Has mixed reviews on Trustpilot (here and here).
Learn more: WorldPay Website
Stripe has rapidly become one of the most popular online payment systems due to their ease of integration and transparent pricing. In addition to card payments, you can set-up recurring billing and direct debit services.
However, like most of the solutions presented here, you will still need to provide your own website and shopping cart software to start selling online.
- No setup, monthly, or hidden fees
- 1.4% + 20p for European cards
- 2.9% + 20p for non-European cards
- SEPA Direct Debit: 1% + 20p (£5 cap)
- Simple, transparent pricing
- No setup, monthly, or hidden fees
- Real-time fee reporting
- Competitive rates on European credit cards
- Requires a certain degree of technical knowledge to get it working, although they do offer extensive, easy-to-follow documentation.
- Has only average reviews on Trustpilot
- Fees for debit and non-European cards are higher than some of the alternatives.
- Once you’re set up, transfers arrive in your bank account on a 7-day rolling basis, which is much slower than many competing services
SagePay offers a full range of payment processing solutions for both online and offline businesses. They claim 55,000 businesses use their services and are unique offering flat monthly fees for many of their products with no transaction charges.
They are also among the best rated payment processing companies in the UK, so are definitely worth a look as online payment system.
- Flex: £19.90/month, 350 transactions per month, eInvoice and phone payments included.
- Plus: £45/month, 500 token purchases per month, Accept a range of local European Payment types.
- Offer an easy drop-in checkout integration
- Plans are charged at Flat monthly fee with no transaction charges.
- Have an amazing 9.7 out of 10 rating on Trustpilot.
- Need to get a bespoke quote if you generate more than 3,000 transactions a month.
- Change 2 pence per minute for all calls, including support.
- Requires a bit of technical knowledge to get up and running.
Klarna is one of a growing number of Swedish fintech companies (see iZettle) that are changing how businesses accept payments. For example, they handle all payments for all shops built using the EKM platform.
For UK businesses they offer the following ways to get paid:
- Pay now: Card payments and other APMs for customers who want to pay for a purchase immediately.
- Pay later: Deferred payments for customers who like frictionless purchases and to pay after delivery by invoice.
- Slice it: Flexible consumer finance that lets customers pay over time.
Klarna Fees (from on EKM Website)
- ‘Startup’ transaction fee: 2.49%
- ‘Growing’ transaction fee: 2.19%
- ‘Established’ transaction fee: 1.99%
- No set-up or monthly fees
- One of the few companies offering a buy now, pay later service.
- Payments widget enables you to show a user’s preferred and most relevant payment options.
- Keep your customers on your site.
- Do not have clear pricing information on their website.
- Some online reviews highlight confusion around pay later service.
- Some reviews claim that their e-mails go to the spam folder.
Payoneer claims to have 4 million users, across 200+ countries, handling payments in 150+ currencies. In simple terms, Payoneer is something of a Paypal alternative which allows you to receive payments from companies worldwide.
They offer the following services:
- Local Currency Accounts: Enable you to receive local bank transfers from companies and marketplaces in the US, UK, EU, Japan, China, Canada and Australia.
- Billing Service: Send your client a payment request and they can pay directly online via bank account, direct debit or card.
- Marketplace Payments: Allows you to get paid faster.
- Sign-up: Free
- Receiving payments from another Payoneer customer or via receiving account: Free (GBP, USD, EUR, & JPY)
- Billing Service: 3% (credit cards all currencies) or 1% via eCheck (USD)
- Withdraw money to a bank account in a different currency: Up to 2%
- Fee to withdraw to a UK sterling bank account: £1.50
- Currently offering you an extra $25 after you collect your first $100. (learn more here)
- Fast: Receive payments from companies and clients within hours, not days.
- Claim they can save you up to 90% on your payment fees.
- Not really designed for running an online store, better suited to freelancers and affiliates.
- Credit card fees are quite high, but they do allow you to accept almost any currency worldwide.
- Some online reviews point to poor customer service.
Learn more: Payoneer Website (and earn $25, when you collect your first $100).
8. Amazon Pay
Amazon Pay merchant services allows you to offer your customers the ability to pay via their existing Amazon account. This can be used either as a stand-alone payment solution and/or in addition to your existing online payment system.
Given Amazon’s reach in the UK, it’s an interesting and unique option for accepting online payments.
Amazon Pay Fees:
- Processing Fee + Authorisation Fee: 3.4% + 20p (under £1,500 a month) down to 1.4% + 20p (over £55,000 a month)
- Cross Border Fee (outside UK): 0.4% – 1.5%
- Chargeback Dispute Fee: £14 (excluding VAT)
Amazon Pay Benefits
- Provides a familiar, trusted way to check-in and checkout, using your customer’s existing Amazon login.
- Transactions are completed on your site and you can receive customer name and verified email at check-in.
- Easy for you to add payment option to your checkout if you use their partner eCommerce platforms such as Shopify, BigCommerce or Xcart.
Amazon Pay Downsides
- Fees for low volumes merchants are incredibly high.
- Some online reviews claim it can take awhile to get approved.
- Typically takes 3 to 5 business days to get paid, which on the slow side.
Adyen is the surinamese for “Start over again”, which is what the company aims to do with online payments. Their goal is to crate a frictionless, state-of-the-art infrastructure that connects directly to card schemes and payment methods around the world.
For online payments thy currently offer their Checkout solution which works with your website, mobile site and/or app.
- No setup fee, or surprises
- Visa + Mastercard: 0.90% – 1.10% + €0.10
- Amex: 3.95% + €0.10
- SEPA Direct Debit: €0.25 + €0.10
- Offer Multiple bank accounts and multiple currencies.
- Allows you to accept every payment on one platform.
- Fees are extremely competitive, although there is a minimum invoice of €100 ($120).
- Designed for bigger merchants since there is a minimum invoice amount of €100 ($120).
- Pricing for European fees is given in Euros, although you can accept GBP
- Typically settles funds to your bank account twice a week, which is slower than some other services.
2Checkout are global leader in online payments. They claim to be trusted by over 50,000 merchants and support transactions in 196 countries through 8 payment methods, 26 currencies, and 15 languages.
In terms of online payments in the UK they offer:
- Global Payments: Accept payments throughout the world.
- Hosted Checkout: Either standard or inline
- Payment API: Payment processing power directly into your website.
- Online shopping carts: Works with almost all leading options
- Recurring billing: For membership or subscriptions
- Standard UK Fee: 2.4% + 30¢
- Cross border Fee: 1.5%
- Chargebacks: $25
- Currency conversion: 2-3%
- Offers a complete range of online payment systems.
- Works with almost every possible shopping cart solution.
- Very easy to get started.
- Fees are not the lowest out there.
- Many complaints about sudden account closures.
- Also complaints of poor customer service.
Authorize.net is one of the oldest online payment processing companies out there. They boast that they have over 400,000 merchant customers around the world.
They currently offer two solutions for UK businesses. Either Payment Gateway & Merchant Account or just a Payment Gateway.
- Payment Gateway & Merchant Account: Transaction Fees: 2.49% + £0.15 and Monthly Gateway fee of £19 with free set-up.
- Payment Gateway Only: Gateway transaction fee of £0.10 + Monthly Gateway fee of £19 with free set-up.
- Offer Automated Recurring Billing for free.
- Free Advanced Fraud Detection Suite
- Includes a Virtual Terminal.
- Charge a monthly fee when most competitors do not.
- Charge extra (£15/month) for extra currencies beyond GBP.
- Transaction fees are on the higher-end of the spectrum.
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Disclaimer: We have affiliate relationships with Shopify, Worldpay, EKM, Payoneer, Nochex, 2Checkout and Authorize.net. This means we may get paid a commission if you purchase one of their products by clicking from our site. However, this will come at no cost to you.