Online payment systems are platforms that let UK businesses accept card and digital wallet payments on websites, apps or invoices, typically combining a payment gateway, processor and sometimes a merchant account into one product. In July 2026, the best online payment systems UK businesses use charge between 1.4% and 2.9% per transaction, with open banking alternatives available from 0.5% + 20p.
With dozens of online payment solutions UK providers now competing on price, features and settlement speed, choosing the wrong one can cost thousands a year in unnecessary fees or lost sales from clunky checkouts. This guide compares the leading platforms so you can pick the right fit for your turnover, sector and technical setup.
Compare Online Payment Systems — At a Glance
| Provider | Best For | Transaction Fee | Monthly Fee | Contract | Rating /5 |
|---|---|---|---|---|---|
| Developers and SaaS | 1.5% + 20p (UK cards) | £0 | No contract | 4.6 | |
| Brand recognition and buyer trust | 2.9% + 30p | £0 | No contract | 4.2 | |
| Combined online/in-person retail | 1.75% | £0 | No contract | 4.3 | |
 Shopify Payments |
Ecommerce stores on Shopify | 1.7% - 2.2% | £25 - £259 | Monthly plan | 4.5 |
| European multi-method checkout | 1.8% + 25p | £0 | No contract | 4.4 | |
| Recurring payments via Direct Debit | 0.5% + 20p (capped at £4) | £0 - £50 | No contract | 4.5 | |
| Businesses already using Revolut | 1.4% - 2.8% | £0 - £79 | No contract | 4.1 | |
| Buy now pay later checkout | 2.5% - 3.9% | £0 | No contract | 4.0 | |
| Large enterprise omnichannel | Interchange++ (from ~1.4%) | Custom | Negotiated | 4.5 | |
| UK mid-market and marketplaces | Custom (from ~1.6%) | Custom | Negotiated | 4.2 |
Top Online Payment Systems Reviewed
Stripe
Stripe remains the developer favourite for online payment processing UK businesses building custom checkouts, subscriptions or marketplaces. Its documentation and API flexibility are unmatched, though non-technical merchants may find setup daunting without a developer.
- Extensive API and pre-built checkout components
- Supports subscriptions, invoicing and marketplace payouts
- Strong fraud tools (Radar) included as standard
- Requires technical resource for full customisation
- Support can be slow for smaller accounts
Transaction fee: 1.5% + 20p (UK cards)
PayPal
PayPal remains one of the most trusted names in online payment solutions UK shoppers recognise instantly, which can lift conversion at checkout. Fees sit at the higher end and PayPal is prone to holding funds on new or high-risk accounts.
- High consumer trust and brand recognition
- Buyer and seller protection built in
- Quick setup with no coding required
- Higher fees than most competitors
- Account holds and reserves can disrupt cash flow
Transaction fee: 2.9% + 30p
Square
Square suits businesses that need to accept payments online UK and in person through the same dashboard, such as retailers with a shop and webstore. Pricing is simple and transparent, though international features are less mature than Stripe or Adyen.
- Unified online and in-person reporting
- Free online store builder included
- Flat-rate pricing with no hidden tiers
- Limited advanced customisation for developers
- Fewer local payment method integrations in Europe
Transaction fee: 1.75%
Shopify Payments
Shopify Payments is the natural choice for merchants already running a Shopify store, removing the need for a third-party gateway. Fees reduce as you move up Shopify's monthly plans, making it more cost-effective at higher volumes.
- Seamless native integration with Shopify checkout
- No third-party gateway fees when used exclusively
- Fee discounts on higher-tier plans
- Locked into the Shopify ecosystem
- Monthly platform fee on top of transaction costs
Transaction fee: 1.7% - 2.2%
Mollie
Mollie has built a strong reputation across Europe for combining a huge range of local payment methods with a clean, no-monthly-fee pricing model. It's a strong Stripe alternative for UK merchants selling into the EU.
- Wide range of local European payment methods
- No monthly fees or long-term contracts
- Clean, intuitive dashboard and reporting
- Less developer documentation than Stripe
- Customer support primarily via email/chat
Transaction fee: 1.8% + 25p
GoCardless
GoCardless takes a different approach entirely, using open banking and Direct Debit rather than card rails, which makes it dramatically cheaper for subscriptions, memberships and invoicing. It's not suited to one-off ecommerce checkouts due to slower collection times.
- Significantly lower fees than card-based processors
- Ideal for recurring billing and subscriptions
- Reduces failed payment rates via bank-level retries
- Not suitable for instant, one-off online purchases
- Collection can take several days to clear
Transaction fee: 0.5% + 20p (capped at £4)
Revolut Business
Revolut's payment gateway is a natural add-on for businesses already banking with Revolut, offering competitive rates and fast integration with its multi-currency accounts. It's less established for complex ecommerce builds than Stripe or Adyen.
- Competitive rates for existing Revolut users
- Multi-currency settlement built in
- Fast onboarding for straightforward setups
- Smaller ecosystem of plugins and integrations
- Less mature dispute and fraud tooling
Transaction fee: 1.4% - 2.8%
Adyen
Adyen is built for large enterprises and high-volume merchants needing a single platform across online, in-app and in-store channels globally. Pricing is interchange++ and negotiated, making it excellent value at scale but overkill for small businesses.
- True omnichannel platform used by major retailers
- Transparent interchange++ pricing at volume
- Extensive global payment method coverage
- Not cost-effective for low-volume merchants
- Onboarding and account management is enterprise-focused
Transaction fee: Interchange++ (from ~1.4%)
Frequently Asked Questions
What is the best online payment system for small businesses in the UK?
The best online payment system depends on your business type and transaction volume, but popular choices for UK small businesses include Stripe, Square, and PayPal, which all offer competitive rates starting from 1.4% plus 20p per transaction. Most small businesses favour systems that combine easy integration, transparent pricing, and support for multiple payment methods including card payments, Open Banking, and digital wallets. Consider your specific needs around reporting, invoicing capabilities, and customer support before deciding.
How do I accept payments online in the UK?
To accept payments online in the UK, you need to register with a payment provider or acquire a payment gateway, verify your business details, and integrate their technology into your website or point of sale system. Most providers offer plugins for popular e-commerce platforms like Shopify and WooCommerce, making setup straightforward for businesses without technical expertise. You'll also need a UK business bank account and to comply with Payment Card Industry (PCI) security standards.
What are the most popular online payment methods in the UK?
The most popular online payment methods in the UK are debit and credit cards (used in approximately 70% of online transactions), followed by digital wallets like Apple Pay and Google Pay, and Open Banking solutions such as Faster Payments. PayPal remains widely used for online shopping, whilst buy now, pay later services have grown significantly, now accounting for around 4-5% of online retail transactions. UK consumers increasingly expect businesses to offer a variety of payment options to maximise conversion rates.
How much does it cost to accept online payments in the UK?
Online payment processing costs in the UK typically range from 1.4% to 3.5% of transaction value plus a fixed fee between 10p and 30p per transaction, depending on your payment provider and transaction type. Some providers offer subscription-based models starting from GBP 20-50 per month for fixed monthly fees instead of percentage-based charges, which may be more economical for high-volume merchants. Additional costs may apply for features like invoicing, recurring payments, or dedicated support.
What is the difference between an online payment system and a payment gateway?
A payment gateway is the technology that securely processes individual card transactions and communicates between your business, the customer's bank, and the payment processor, whilst an online payment system is the broader platform that may include gateway functionality alongside additional features like invoicing, reporting, and reconciliation. Many providers like Stripe offer an integrated payment system, whereas some businesses use separate gateway and merchant account providers. In practice, the terms are often used interchangeably, though a complete payment system typically offers more functionality than a standalone gateway.
How to Choose the Right Online Payment Systems
Selecting the right online payment system is crucial for your UK business. The best choice depends on your specific needs, industry, and customer base. Consider factors such as transaction fees, payment methods supported, integration ease, and security compliance to ensure you're getting genuine value.
Evaluate your business model carefully before committing. Different payment providers excel in different areas, so aligning their strengths with your requirements will save time and money.
- Transaction volume: Higher volumes unlock better rates and improved negotiating power with providers.
- Payment methods: Ensure the system supports cards, digital wallets, and bank transfers your customers prefer.
- Integration requirements: Check compatibility with your existing systems, website platform, and accounting software.
- Security and compliance: Verify PCI DSS accreditation and GDPR compliance to protect customer data.
Browse All Online Payment Systems
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