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Pay by Link services allow UK businesses to take card payments without a physical terminal or online checkout, by generating a secure payment URL sent via email, SMS, or messaging apps such as WhatsApp. The customer simply clicks the link, enters their card or open banking details on a hosted payment page, and the transaction is processed instantly with confirmation sent to both parties. It is now used by everyone from sole trader tradespeople and hairdressers to solicitors, dental practices, and hospitality venues as a faster, safer replacement for taking card details over the phone.
Key Takeaways
- Pay by Link removes the need for a card terminal, letting any UK business with a smartphone or laptop take card payments remotely.
- Typical UK fees range from 1.4% to 2.9% per transaction, depending on provider, card type, and monthly volume.
- Providers including SumUp, Square, Zettle, Stripe, Worldpay, and Dojo all offer Pay by Link as a standard or add-on feature.
- It significantly reduces PCI DSS compliance burden compared with taking card details manually over the phone or by email.
- Links can be sent by SMS, email, or WhatsApp, and many providers now support Apple Pay and Google Pay within the hosted checkout.
- Chargeback and fraud risk is lower than telephone card payments because cardholder authentication happens through the customer's own device.
- Choosing the right provider depends on transaction volume, average order value, and whether you need integration with invoicing or accounting software.
What Is Pay by Link and Why Are UK Businesses Adopting It?
Pay by Link (sometimes called "payment links" or "send a payment link") is a method of taking card payments remotely without a card machine or a full ecommerce website. A business generates a unique, secure URL through a payment provider's dashboard or mobile app, attaches an amount and description, and sends it to the customer through whichever channel suits them best. The customer opens the link on their phone or computer, is taken to a secure hosted payment page, and completes the transaction using a debit card, credit card, Apple Pay, Google Pay, or in some cases open banking bank transfer.
The appeal for UK businesses is straightforward. It replaces the practice of taking card numbers over the phone, which is both a security risk and a PCI DSS compliance headache, with a method that keeps card data entirely within the payment provider's secure environment. It also suits businesses that do not want the cost or complexity of a full online store, such as tradespeople invoicing after a job, clinics taking deposits, or event organisers selling tickets by request.
Typical Use Cases
Pay by Link has found particular traction among:
- Tradespeople and contractors invoicing for completed work
- Hair and beauty salons taking deposits or no-show fees
- Healthcare and dental practices collecting payment for private treatment
- Professional services firms (solicitors, accountants, consultants) billing clients
- Hospitality venues taking deposits for bookings and events
- Charities and community organisations collecting donations or membership fees
- Retailers taking phone or social media orders without a full online shop
How Pay by Link Works in Practice
The mechanics are consistent across most UK providers, though the exact steps in each dashboard vary slightly.
Step-by-Step Process
- Create the request: Log into your provider's app or dashboard and enter the amount, a description, and optionally the customer's name or reference.
- Send the link: Choose to send via SMS, email, or copy the link to paste into WhatsApp, Facebook Messenger, or an invoice.
- Customer pays: The customer opens the link on any device and is taken to a secure, hosted checkout page branded to the provider (and sometimes to your business).
- Authentication: The customer enters card details or uses a saved digital wallet, completing 3D Secure authentication as required under Strong Customer Authentication (SCA) rules.
- Confirmation: Both you and the customer receive instant confirmation, and funds typically settle to your business bank account within one to three working days.
Because the payment page is hosted by the provider rather than built by you, your business does not handle or store any card data, which dramatically simplifies your PCI DSS obligations. This is a major advantage over collecting card numbers manually, which requires far more stringent (and often impractical) compliance controls for small businesses.
Pay by Link Fees and Costs in the UK
Pricing structures vary by provider, but most UK Pay by Link services charge a percentage-based transaction fee rather than a fixed monthly terminal rental, which makes them attractive to businesses with irregular or seasonal payment volumes.
What Affects the Price You Pay
- Card type: UK consumer debit and credit cards are typically cheaper to process than commercial or international cards.
- Monthly volume: Higher monthly turnover often unlocks lower percentage rates through negotiated or tiered pricing.
- Settlement speed: Faster next-day settlement sometimes carries a small premium over standard 2-3 day settlement.
- Included features: Some providers bundle Pay by Link free with a card machine subscription; others charge it as a standalone product with its own fee.
Comparison of UK Pay by Link Providers
| Provider | Typical Transaction Fee | Monthly Fee | Settlement Time | Notable Features |
|---|---|---|---|---|
| SumUp | 1.99% - 2.5% | £0 (pay-as-you-go) | 1-2 working days | Simple app-based links, no monthly commitment |
| Square | 1.75% - 2.5% | £0 (pay-as-you-go) | 1-2 working days | Integrated invoicing and payment links |
| Zettle (PayPal) | 1.75% - 2.9% | £0 (pay-as-you-go) | 1-3 working days | PayPal integration, strong for small retailers |
| Stripe Payment Links | 1.5% + 20p | £0 (usage-based) | 2-3 working days | Highly customisable, developer-friendly |
| Worldpay | 1.4% - 2.2% (volume-dependent) | Varies by plan | 1-3 working days | Suited to higher-volume merchants, negotiable rates |
| Dojo | 1.6% - 2.4% | Varies by plan | Next day available | Often bundled with card terminal contracts |
These figures are indicative and change frequently as providers adjust pricing, so it is worth checking current rates or using an independent comparison before committing. For a broader view of how these costs stack up against other online payment methods, see our guide to online payment systems in the UK.
Pay by Link vs Alternatives: Card Terminals, Invoicing and Open Banking
Pay by Link is not the only way to take remote payments, and it is worth understanding where it fits relative to other options before choosing a provider.
Pay by Link vs Card Machines
Card terminals are best suited to face-to-face transactions where the customer is physically present. Pay by Link fills the gap where the customer is not present, such as phone orders, deposits, or remote invoicing, without requiring you to manually key in card numbers, which typically carries higher fees and higher fraud risk (known as a "card-not-present" or "MOTO" transaction).
Pay by Link vs Traditional Invoicing
Standard invoices require the customer to separately log into online banking or write a cheque, introducing delay and friction. A payment link embedded in or attached to an invoice converts this into a one-click payment experience, which UK businesses report significantly speeds up collection times, particularly for smaller, one-off transactions.
Pay by Link vs Open Banking Payment Requests
Some Pay by Link providers now also support open banking as a payment method within the same link, allowing the customer to pay directly from their bank account rather than by card. This avoids card scheme fees entirely and can reduce costs for the business, though customer familiarity with the mechanism is still growing in the UK. For a deeper look at how open banking payments compare with other collection methods, see our guide on Direct Debit vs Open Banking.
Security, Fraud and Compliance Considerations
One of the strongest arguments for Pay by Link over telephone card payments is the reduction in fraud exposure and compliance burden.
PCI DSS Compliance
When a business takes card details over the phone and manually types them into a terminal or virtual terminal, it falls under stricter PCI DSS requirements because card data passes through the business's own systems and staff. Pay by Link avoids this entirely, since the customer enters their own card details directly into the provider's secure hosted page, meaning the business never sees or stores sensitive card data.
Strong Customer Authentication
Since the UK's adoption of Strong Customer Authentication rules (aligned with the EU's PSD2 framework but enforced by the FCA domestically), most card payments above certain thresholds require two-factor authentication, typically through 3D Secure. Pay by Link transactions are generally well set up for this, as the customer completes authentication on their own device using their own banking app or SMS code, reducing declined transactions compared with manually keyed payments.
Chargeback Risk
Because the customer actively authenticates the payment themselves, Pay by Link transactions typically carry a lower chargeback and fraud risk than MOTO (mail order/telephone order) payments, where a staff member types in card details on the customer's behalf. This can also mean lower processing rates from some providers, since MOTO transactions are often priced at a premium due to their higher risk profile.
Choosing the Right Pay by Link Provider for Your Business
With numerous UK providers now offering payment links, the right choice depends on a handful of practical factors specific to your business.
Key Questions to Ask
- What is my average transaction value? Flat-fee providers (like Stripe's per-transaction fixed fee plus percentage) can be cheaper for higher-value transactions, while pure percentage-based providers may suit smaller average orders.
- Do I need this integrated with invoicing or accounting software? Many UK accounting platforms including Xero and QuickBooks now support embedded payment links, which can save administrative time.
- How quickly do I need funds to settle? If cash flow is tight, next-day or same-day settlement options (sometimes at a small premium) may be worth the extra cost.
- Do I already have a card machine provider? Many providers such as Dojo, SumUp, and Zettle bundle Pay by Link into their existing card machine plans at no extra monthly cost, which can be the simplest route if you already use their terminals.
- Do I need open banking payment options? If your customer base is comfortable paying by bank transfer, offering this alongside card payments in the same link can reduce your overall processing costs.
Red Flags to Watch For
When comparing providers, watch for long minimum contract terms, hidden monthly minimums, or providers that charge extra for basic features such as SMS sending or multiple currency support. Always check whether the quoted transaction fee includes VAT and whether there are additional costs for refunds or chargebacks, as these can materially change the total cost of using the service.
Setting Up Pay by Link: A Practical Checklist
For businesses ready to implement Pay by Link, the setup process is usually quick, often completed within a single day.
- Choose a provider based on your transaction volume, average order value, and existing software (see comparison table above).
- Complete the provider's merchant onboarding, which typically requires business registration details, a UK bank account, and identity verification for company directors.
- Set up your branding within the dashboard, including business name, logo, and any custom messaging shown on the hosted payment page.
- Test the process by creating a small payment link and sending it to yourself or a colleague to confirm the customer experience.
- Train staff on how to generate links quickly, particularly if multiple team members will be sending them to customers.
- Set up notifications so you are alerted immediately when a payment is received, allowing faster order fulfilment or service delivery.
The Future of Pay by Link in the UK
Pay by Link is expected to keep growing in the UK as more businesses move away from cash and phone-based payments. Increasingly, providers are adding open banking options directly within payment links, reducing card scheme fees for both business and customer. Integration with digital wallets is also becoming standard, meaning customers can pay with Apple Pay or Google Pay in a single tap rather than manually entering card details, which further reduces friction and abandonment. For businesses considering how this fits into a wider digital payments strategy, our guide to digital wallets in the UK explains how Apple Pay and Google Pay integrate with modern checkout experiences, and our overview of what open banking means for UK businesses provides useful context for where payment technology is heading next.
Frequently Asked Questions
What is Pay by Link and how does it differ from a normal online checkout?
Pay by Link is a payment method where a business generates a unique, secure URL for a specific transaction and sends it directly to a customer, rather than requiring the customer to browse a full ecommerce website. It is ideal for one-off or irregular payments such as invoices, deposits, or phone orders, where building a full online store would be unnecessary or too costly.
How much does Pay by Link cost in the UK?
Most UK providers charge between 1.4% and 2.9% per transaction, depending on the provider, your monthly volume, and the card type used. Some providers, such as Stripe, charge a small fixed fee plus a percentage, while others such as SumUp and Zettle use a simpler flat percentage rate with no monthly fee.
Is Pay by Link safe for UK businesses and customers?
Yes, Pay by Link is generally considered safer than taking card details over the phone because customers enter their own card information directly into the provider's secure hosted page, and the business never sees or stores that data. This also significantly reduces the business's PCI DSS compliance obligations compared with manually keyed telephone payments.
Can I use Pay by Link without a website?
Yes, Pay by Link is specifically designed for businesses that do not have or do not need a full ecommerce website. Links can be created directly from a provider's mobile app or dashboard and sent via SMS, email, or messaging apps such as WhatsApp without any need for coding or web development.
Which UK providers offer Pay by Link services?
Major UK providers offering Pay by Link include SumUp, Square, Zettle (PayPal), Stripe, Worldpay, and Dojo, each with different pricing structures and features. Many card machine providers now bundle Pay by Link into their existing plans at no extra monthly cost, making it worth checking with your current provider before signing up elsewhere.
How long does it take for funds to reach my bank account?
Settlement times vary by provider but typically range from one to three working days after the customer completes payment. Some providers offer expedited next-day or same-day settlement, sometimes for a small additional fee, which can be useful for businesses managing tight cash flow.
Do Pay by Link transactions count as card-present or card-not-present sales?
Pay by Link transactions are classed as card-not-present, similar to standard ecommerce sales, but they typically carry lower risk than manually keyed telephone payments because the customer authenticates the transaction themselves. This generally results in more favourable processing rates than traditional MOTO (mail order/telephone order) payments.
How Compare Card Fees Can Help
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