A payment gateway is the technology that securely captures and transmits card details from your website or app to your bank for authorisation, letting UK businesses accept online payments in seconds. The best payment gateway for UK businesses depends on transaction volume, technical resources and which currencies you need to support. Transaction fees range from 1.4% + 20p for UK and European cards on Stripe to 2.9% + 30p on PayPal, with some providers adding monthly platform fees of £19 to £45 on top. At £20,000 monthly card volume, that fee gap can cost or save around £300 a month, so comparing properly before you commit matters.
This page compares 11 leading UK payment gateway providers side by side, with honest assessments of fees, contracts, settlement speeds and integration complexity. It is updated August 2026.
Key Facts: UK Payment Gateways 2026
| Provider | FCA Regulated | Transaction Fee (UK Cards) | Monthly Fee | Contract Length | Settlement Speed |
|---|---|---|---|---|---|
| Stripe | Yes (FCA e-money authorised) | 1.4% + 20p (UK/EU personal Visa & Mastercard) | £0 | No contract | 2 working days (next-day available) |
| PayPal | Yes (FCA authorised) | 2.9% + 30p | £0 | No contract | Instant to PayPal balance; 1–3 days to bank |
| Worldpay | Yes (FCA authorised) | 1.5%–2.5% + fixed fee (negotiated) | £19–£45 | 12–36 months | 2–3 working days |
| Adyen | Yes (FCA authorised) | ~1.2%–1.6% + fixed fee (interchange++) | £0 | No fixed contract | 2 working days |
| Mollie | Yes (FCA registered) | 1.8% + 25p | £0 | No contract | 2 working days |
| GoCardless | Yes (FCA authorised) | 1% (capped at £4 per transaction; Direct Debit only) | £0–£49 | No contract (Pro plan annual) | 2–5 working days (Direct Debit) |
| Checkout.com | Yes (FCA authorised) | Interchange + 0.10%–0.20% (negotiated) | Negotiated | 12–36 months (negotiated) | 2 working days |
| Shopify Payments | Yes (via Stripe infrastructure) | 1.7% + 20p (Shopify plan, UK cards) | Included in Shopify plan | Monthly Shopify subscription | 2–3 working days |
| Revolut Business | Yes (FCA e-money authorised) | 1% + 20p (EEA cards) | £0–£100 (plan dependent) | No contract | Next working day |
| Opayo (SagePay) | Yes (FCA authorised) | 1.5%–2.9% + 20p | £20–£30 | Monthly or annual | 2–3 working days |
| Acquired.com | Yes (FCA authorised) | From 1.5% + 15p (negotiated) | Custom | Negotiable | 2 working days |
Key Takeaways
- UK payment gateway transaction fees range from around 1.4% + 20p per transaction for UK and European personal Visa and Mastercard cards on Stripe, up to 2.9% + 30p on PayPal, with monthly platform fees of £19–£45 added on top by some providers.
- Pay-as-you-go gateways like Stripe and Mollie suit newer businesses. Fixed-term contracts, common with Worldpay and Paysafe, can offer lower rates at higher volumes but carry early termination fees.
- Standard settlement is two to three working days. Some gateways offer next-day payouts, with funds in your account by 7am, typically for a small additional fee.
- Stripe charges 1.4% + 20p for UK and EU cards with no monthly fee and no contract, making it the lowest published rate for most UK ecommerce businesses.
- GoCardless is not a card gateway. It specialises in Direct Debit and bank-to-bank payments at 1% per transaction capped at £4, making it the cheapest option for subscription payments at higher values.
- Compare Card Fees is a free, independent advisory service that has helped UK businesses find better card payment deals since 2012.
Who Is This Page For?
This comparison is written for UK business owners and finance managers who accept or plan to accept payments online. It covers small businesses setting up their first ecommerce checkout, growing retailers processing £5,000–£100,000 a month, and larger merchants looking to cut gateway costs. If you run a subscription business, a section on Direct Debit and recurring payments is also included. If you need card machines for in-person payments rather than online, our card machines comparison is a better starting point.
What Is a Payment Gateway?
A payment gateway is a technology service that securely captures your customer's card or digital wallet details at checkout, encrypts that data and passes it to your acquiring bank or payment processor for authorisation. The authorisation response, either approved or declined, comes back in typically two to three seconds. Without a gateway, you cannot accept card payments online. Most UK providers regulated by the Financial Conduct Authority (FCA) bundle gateway and acquiring services together, though some gateways require a separate merchant account.
Payment Gateway Fees Explained
Payment gateway fees in the UK typically combine a percentage of each transaction value with a fixed pence amount. Stripe charges 1.4% + 20p per transaction for UK and European personal Visa and Mastercard cards. PayPal charges 2.9% + 30p. Worldpay and Checkout.com negotiate rates depending on volume. On top of per-transaction fees, some providers charge monthly platform fees: Worldpay charges £19–£45 per month depending on plan, while Opayo charges £20–£30. Providers like Stripe, Mollie and GoCardless charge no monthly fee at all.
The hidden costs to watch for are cross-border surcharges, currency conversion fees, PCI compliance fees and minimum monthly service charges. A business taking mostly international cards should pay close attention to non-UK card surcharges: Stripe adds 1.5% on top of its standard rate for non-European cards, taking the effective rate to 2.9% + 20p for, say, a US Visa card.
Compare Payment Gateway Fees: UK 2026
| Provider | Transaction Fee | Monthly Fee | Contract |
|---|---|---|---|
| Stripe | 1.4% + 20p (UK/EU cards) / 2.9% + 20p (non-EU cards) | £0 | No contract |
| PayPal | 2.9% + 30p | £0 | No contract |
| Worldpay | 1.5%–2.5% + fixed fee (negotiated) | £19–£45 | 12–36 months |
| Opayo (SagePay) | 1.5%–2.9% + 20p | £20–£30 | Monthly or annual |
| Adyen | ~1.2%–1.6% + fixed fee (interchange++) | £0 (volume-based) | No fixed contract |
| Mollie | 1.8% + 25p | £0 | No contract |
| GoCardless | 1% (capped at £4 per transaction) | £0–£49 | No contract (Pro plan annual) |
| Acquired.com | From 1.5% + 15p (negotiated) | Custom | Negotiable |
| Revolut Business | 1% + 20p (EEA cards) | £0–£100 (plan dependent) | No contract |
| Shopify Payments | 1.7% + 20p (UK cards, on higher plans) | Included in Shopify plan | Monthly Shopify subscription |
| Checkout.com | Interchange + 0.10%–0.20% (negotiated) | Negotiated | 12–36 months (negotiated) |
What to Look For in a UK Payment Gateway
- True cost per transaction: Look beyond the headline percentage. Add the fixed pence fee, cross-border surcharges, currency conversion fees and any monthly minimums to get your real blended rate. A business processing £10,000 a month at 1.4% + 20p pays roughly £140 in percentage fees plus around £60 in fixed fees on 300 transactions, coming to around £200 total versus £360 at 2.9% + 30p.
- Contract flexibility: Pay-as-you-go providers like Stripe and Mollie suit smaller or newer businesses. Fixed-term contracts with Worldpay and Paysafe can offer lower rates at higher volumes but carry early termination fees that can run into hundreds of pounds.
- Integration complexity: Some gateways offer no-code plugins for Shopify or WooCommerce that go live in under an hour. Others require a full API integration needing developer resource. Match your choice to your in-house technical capability before signing up.
- Currency and payment method coverage: If you sell across Europe or globally, check support for multi-currency settlement, local payment methods like iDEAL and Bancontact, and Strong Customer Authentication (SCA) compliance under UK Payment Services Regulations.
- Settlement speed and payout reliability: Standard settlement is two to three working days, but some gateways offer next-day payouts, with funds in your account by 7am the following morning, which matters for cash-flow-sensitive businesses.
- PCI DSS compliance: Every UK payment gateway must be PCI DSS Level 1 certified. Check whether the gateway handles your compliance obligations or whether you need to complete an annual Self-Assessment Questionnaire separately. Some providers charge a PCI compliance fee of £2–£5 per month.
How Much Does a Payment Gateway Cost in the UK?
Payment gateway costs in the UK depend on three things: per-transaction fees, monthly platform fees and any setup or integration charges. Per-transaction fees for UK card payments typically range from 1.4% + 20p at the low end to 2.9% + 30p at the high end. Monthly fees range from £0 on Stripe, Mollie and GoCardless to £45 on Worldpay's higher-volume plans. Setup fees are rare for newer providers but Worldpay and Opayo may charge one-off integration or activation fees. There is no payment gateway in the UK that is genuinely free. Even zero-monthly-fee providers charge per transaction.
For a business taking £5,000 a month in online card payments, the annual gateway cost ranges from roughly £840 on Stripe (1.4% + 20p on 200 transactions) to around £2,100 on PayPal (2.9% + 30p). That gap of £1,260 a year is worth taking seriously before you sign up for whichever gateway your website builder defaults to.
Cheapest Payment Gateways in the UK
The cheapest payment gateway for most UK businesses is Stripe at 1.4% + 20p per transaction for UK and European personal Visa and Mastercard cards, with no monthly fee and no contract. Adyen can work out cheaper at high volumes thanks to interchange-plus pricing, but requires significant transaction volume to justify the onboarding effort. GoCardless is the cheapest option specifically for recurring subscription payments, charging just 1% per transaction capped at £4, far below card gateway rates for Direct Debit-eligible businesses.
| Provider | Best For | Cost at £10,000/month (est.) |
|---|---|---|
| Stripe | Most UK ecommerce businesses | ~£200/month (1.4% + 20p, ~300 transactions) |
| Adyen | High-volume (£500k+/year) | ~£150–£180/month (interchange++ at volume) |
| GoCardless | Subscription/Direct Debit | ~£100/month (1%, capped at £4/transaction) |
| Revolut Business | Revolut banking customers | ~£120/month (1% + 20p, EEA cards) |
Top Payment Gateways Reviewed: UK 2026
Stripe
Stripe remains the default choice for UK developers and scaling ecommerce brands thanks to its clean API, extensive documentation and no monthly fees. It charges 1.4% + 20p per transaction for UK and European personal Visa and Mastercard cards, rising to 2.9% + 20p for non-European cards. At £20,000 monthly volume with mostly UK cards, that works out to around £400 in transaction fees with no additional monthly cost. Smaller non-technical merchants may find the raw API overwhelming without a plugin, though Stripe's WooCommerce and Shopify integrations install in minutes.
- 1.4% + 20p per transaction for UK and EU personal Visa and Mastercard cards, the lowest published rate in this comparison
- Supports 135+ currencies and dozens of payment methods including Apple Pay, Google Pay and SEPA Direct Debit
- No setup fee, no monthly fee, no minimum volume requirement
- Native plugins for Shopify, WooCommerce, Magento and most major ecommerce platforms
- Funds settled next working day on Stripe's standard plan, or same-day for an additional fee
- Non-European card fees add 1.5% on top of the standard rate, which is significant for businesses with international customers
- Phone support is not available on the standard plan; customer service is largely self-serve
Transaction fee: 1.4% + 20p (UK/EU cards) | Monthly fee: £0 | Contract: none
See our full Stripe review or compare Stripe vs Worldpay and Stripe vs PayPal.
PayPal
PayPal's biggest strength is instant customer recognition. Shoppers trust the brand, and a familiar checkout can lift conversion for newer stores. The trade-off is the highest standard transaction fee in this comparison at 2.9% + 30p per transaction. At £10,000 monthly volume, PayPal costs roughly £350 a month versus £200 on Stripe, a difference of £1,800 a year. It suits businesses where brand trust matters more than margin, or those needing a quick second payment method alongside a primary gateway.
- Recognised by the vast majority of UK online shoppers, which can reduce checkout abandonment
- Extremely fast to set up, going live within minutes with no developer needed
- Buyer and seller protection included as standard
- Highest standard transaction fee in this comparison at 2.9% + 30p, costing around £150 more per month than Stripe at £10,000 volume
- Fund holds and account restrictions are a common and well-documented complaint, particularly for newer accounts
Transaction fee: 2.9% + 30p | Monthly fee: £0 | Contract: none
See our full PayPal review or compare PayPal vs Mollie.
Worldpay
Worldpay is one of the longest-established names in UK card processing, widely used by retailers wanting a dedicated account manager and negotiated rates. Its published rates run from 1.5% to 2.5% plus a fixed fee depending on volume and card type, with monthly fees of £19–£45. The strength at high volumes comes with a trade-off: contracts typically run 12 to 36 months, and early termination fees apply. Businesses processing under £5,000 a month will usually find better value with a pay-as-you-go provider.
- Strong track record and high reliability at enterprise scale
- Negotiable rates that can beat competitors at volumes above £50,000 a month
- Wide acquiring and card scheme coverage including Amex, Diners and international schemes
- Contracts lock businesses in for 12–36 months with early termination fees
- Monthly fees of £19–£45 make it uncompetitive for low-volume merchants
Transaction fee: from 1.5% + fixed fee (negotiated) | Monthly fee: £19–£45 | Contract: 12–36 months
See our full Worldpay review.
Adyen
Adyen is built for scale, offering a single platform for online, in-store and international payments. Its interchange-plus-plus pricing model passes through the exact Visa and Mastercard interchange cost plus a small processing margin, typically 1.2%–1.6% plus a fixed fee at volume. This can be genuinely cheaper than Stripe's blended rate for businesses processing over £500,000 a year. Adyen requires no fixed monthly fee and has no long-term contract, but onboarding is enterprise-grade and not suited to small merchants.
- Transparent interchange++ pricing rewards high volume and is auditable against scheme fee schedules
- Single integration for online, in-store, mobile and in-app payments
- Excellent multi-currency and international acquiring support across 20+ markets
- Not designed for businesses processing less than around £1 million a year. Smaller merchants will find the onboarding process heavy-going
- No published standard pricing; all rates are negotiated
Transaction fee: ~1.2%–1.6% + fixed fee (interchange++) | Monthly fee: £0 | Contract: none fixed
See our full Adyen review or compare Stripe vs Adyen and Checkout.com vs Adyen.
Mollie
Mollie has grown fast in the UK and Europe by combining simple flat-rate pricing with genuinely easy plugin integrations for Shopify, WooCommerce and Magento. It charges 1.8% + 25p per transaction for UK card payments with no monthly fee. At £10,000 monthly volume it costs roughly £230 a month, which is more than Stripe but less than PayPal. It is a strong middle-ground for SMEs wanting more payment methods than PayPal without Adyen's complexity.
- Simple, transparent flat-rate pricing with no monthly fee and no contract
- Strong support for European local payment methods including iDEAL, Bancontact and SEPA
- Fast onboarding, with merchants often live within one working day
- Fewer advanced enterprise features than Adyen or Worldpay
- UK customer support hours are more limited than the larger players
Transaction fee: 1.8% + 25p | Monthly fee: £0 | Contract: none
See our full Mollie review or compare Stripe vs Mollie and PayPal vs Mollie.
GoCardless
GoCardless is not a card gateway in the traditional sense. It specialises in Direct Debit and bank-to-bank payments, making it the go-to choice for UK subscription businesses wanting to cut failed payment rates and card processing costs. It charges 1% per transaction capped at £4, so a £500 recurring payment costs just £4 rather than the £7.50 it would cost at 1.5% on a card gateway. It pairs well with Stripe or another gateway for businesses needing both card and Direct Debit capability.
- 1% per transaction capped at £4, making it dramatically cheaper than card gateways for high-value recurring payments
- Reduces failed payment and churn rates for subscription businesses
- Simple integrations with major accounting platforms including Xero and QuickBooks
- Not suitable as the sole payment method for one-off or impulse purchases
- Direct Debit payments take two to five working days to clear, unlike instant card authorisation
Transaction fee: 1% (capped at £4) | Monthly fee: £0–£49 | Contract: none (Pro plan annual)
See our full GoCardless review or compare Stripe vs GoCardless and PayPal vs GoCardless.
Revolut Business
Revolut's payment gateway is a natural fit for businesses already using Revolut Business for banking, offering competitive rates on EEA card transactions at 1% + 20p. Monthly fees depend on your Revolut Business plan, ranging from £0 on the free plan to £100 on the Scale plan. It is less established as a standalone gateway than Stripe or Adyen, so it is worth verifying support quality and uptime guarantees before switching your primary checkout to Revolut.
- Competitive rates on EEA card transactions at 1% + 20p
- Straightforward integration for businesses already on the Revolut Business platform
- Real-time reporting dashboard with multi-currency visibility
- Less proven track record than established gateways, with fewer third-party integrations
- Monthly fee depends heavily on which Revolut Business plan you are already paying for
Transaction fee: 1% + 20p (EEA cards) | Monthly fee: £0–£100 | Contract: none
See our full Revolut Business review or compare Stripe vs Revolut.
Shopify Payments
Shopify Payments is the built-in gateway for Shopify stores, removing the 0.5%–2% third-party transaction fee Shopify charges when you use an external gateway. On the Shopify plan, UK card rates are 1.7% + 20p. On the Basic Shopify plan, rates are 2% + 25p. It only works within the Shopify platform. If you ever move away from Shopify, you will need a separate gateway. For merchants committed to Shopify, it is the most cost-efficient option.
- No third-party transaction fee when used as the primary Shopify checkout
- Fully integrated with Shopify's reporting, inventory and checkout flow
- Supports Apple Pay, Google Pay and Shop Pay by default
- Only available on Shopify and not portable if you migrate platforms
- Dispute fees of £10 per chargeback apply regardless of outcome
Transaction fee: 1.7% + 20p (Shopify plan, UK cards) | Monthly fee: included in Shopify plan | Contract: monthly Shopify subscription
See our full Shopify Payments review or compare Stripe vs Shopify Payments and PayPal vs Shopify Payments.
Checkout.com
Checkout.com is built for established online businesses processing at least £100,000 a month. It offers transparent interchange-plus pricing and direct acquiring across more than 20 markets, which typically improves authorisation rates for cross-border sales. There is no self-serve sign-up and no published pricing. Everything is negotiated, which means it is not a practical choice for smaller or growing businesses. Enterprise merchants with multi-market ambitions will find it competitive.
- Interchange-plus pricing passes through exact card scheme costs rather than blending them
- Direct acquiring in 20+ markets improves authorisation rates on international transactions
- Dedicated account management and enterprise-grade fraud tooling included
- No self-serve onboarding, making it not accessible for businesses under around £1 million annual card volume
- Contract terms of 12–36 months apply; negotiated and not publicly disclosed
Transaction fee: interchange + 0.10%–0.20% (negotiated) | Monthly fee: negotiated | Contract: 12–36 months
See our full Checkout.com review or compare Checkout.com vs Stripe.
Payment Gateway Fees Comparison: How Do Major Providers Differ?
The main differences between UK payment gateway fee structures come down to pricing model, volume thresholds and contract flexibility. Blended flat-rate pricing, used by Stripe and Mollie, bundles interchange, scheme fees and processing margin into a single published rate. Interchange-plus pricing, used by Adyen and Checkout.com, passes through the exact Visa and Mastercard interchange cost and adds a separate processing margin. Interchange-plus is almost always cheaper at high volume but harder to predict month to month.
| Pricing Model | Providers | Pros | Cons |
|---|---|---|---|
| Flat-rate blended | Stripe, Mollie, PayPal, GoCardless | Predictable monthly cost, no surprises on card type | Businesses with mostly debit card transactions overpay vs interchange++ |
| Interchange-plus | Adyen, Checkout.com, Acquired.com | Cheaper at high volume; fully transparent on cost breakdown | Variable month to month; requires finance team to reconcile |
| Negotiated blended | Worldpay, Opayo, Paysafe | Can be competitive at £50,000+ monthly volume | Typically requires 12–36 month contract with exit fees |
Payment Gateway Integration: What Does It Cost and How Long Does It Take?
Payment gateway integration costs vary from nothing to tens of thousands of pounds depending on the route you take. Using a no-code plugin for Shopify or WooCommerce, available from Stripe, Mollie and PayPal, takes under an hour and costs nothing beyond the gateway fees themselves. A hosted payment page, where customers are redirected to the provider's checkout, requires minimal development work. A full API integration, where the payment form lives entirely within your own website, requires developer time: typically two to five days at UK developer rates of £400–£800 per day, so budget £800 to £4,000 for a bespoke integration.
Ongoing integration maintenance is the hidden cost most businesses underestimate. PCI DSS requirements, Strong Customer Authentication (SCA) rule changes under the FCA's Payment Services Regulations, and Visa and Mastercard scheme updates all require periodic development time to stay compliant.
Payment Gateways for High-Volume Transactions in the UK
High-volume UK businesses processing over £100,000 a month should evaluate Adyen, Checkout.com and Worldpay as their primary gateway options. All three offer negotiated interchange-plus or volume-tiered pricing that can bring effective transaction costs well below the flat rates published by Stripe and Mollie. Adyen is particularly strong for multinational businesses, as its single integration spans online, in-store and app payments across 20+ countries. Checkout.com provides direct acquiring in over 20 markets, which typically improves authorisation rates by removing an intermediary bank from the transaction chain.
For businesses processing over £1 million a year, the cost saving from switching from a flat-rate gateway to interchange-plus pricing can be material. A business paying Stripe's blended 1.4% on £1 million of mostly debit card transactions where the actual interchange is closer to 0.2% is paying around £12,000 a year more than it needs to. Getting competing quotes is worthwhile well before any existing contract renewal date.
Payment Gateways for Subscription Businesses in the UK
UK subscription businesses have two main gateway options: a card gateway like Stripe, which supports recurring card billing, or GoCardless, which processes payments via Direct Debit at 1% per transaction capped at £4. For low-value subscriptions under £10 per month, card billing on Stripe at 1.4% + 20p typically costs more per transaction than GoCardless. For higher-value subscriptions, GoCardless's £4 cap becomes decisive. A £200 monthly subscription costs £2 on GoCardless versus £3 on Stripe.
Card gateways also carry higher failed payment rates for subscriptions, typically 5–15% of recurring card charges fail due to card expiry or insufficient funds. GoCardless reports failed Direct Debit rates of around 1–3%, which directly reduces involuntary churn for subscription businesses.
Free Payment Gateways in the UK
There is no completely free payment gateway in the UK. All charge per transaction, since that is how they generate revenue. However, several charge no monthly fee and no setup fee, making them effectively free to start with. Stripe, Mollie, GoCardless, PayPal and Revolut Business all have £0 monthly fees and no minimum volume requirement. The trade-off is that their per-transaction rates are typically higher than negotiated rates available from Worldpay or Adyen at volume. A business taking £1,000 a month pays nothing upfront to Stripe but around £20 in transaction fees, versus Worldpay's £19–£45 monthly fee before any transactions.
Which Payment Gateways Work With Shopify and WooCommerce?
Stripe, PayPal, Mollie, Worldpay, Adyen and GoCardless all offer official plugins or native integrations for both Shopify and WooCommerce. Shopify Payments is the only option exclusive to Shopify. For Shopify merchants, using Shopify Payments avoids an additional 0.5%–2% transaction fee that Shopify charges when using a third-party gateway. For WooCommerce merchants, Stripe and PayPal have the most mature and widely tested plugins, with Mollie offering a strong alternative particularly for businesses selling to European customers.
How Compare Card Fees Can Help
Compare Card Fees is a free, independent advisory service that has helped UK businesses find better card payment deals since 2012. We work with over 90% of the UK's leading acquiring banks and payment gateway providers. Our advisers can obtain competing quotes on your behalf, check your current contract for exit clauses, and identify whether a different pricing model would save you money at your transaction volume. There is no charge for the service and your data is never sold on to third parties.
To get a free comparison tailored to your business, visit our compare merchant services page or read about how the process works.
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Featured providers in this category. Click any name to read our full review.
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Frequently Asked Questions
What is a payment gateway?
A payment gateway is a technology service that securely captures your customer's card or digital wallet details at checkout, encrypts that data under PCI DSS standards and transmits it to your acquiring bank for authorisation. The bank's response, approved or declined, returns in around two to three seconds. Any UK business that accepts card payments online needs one.
What are typical payment gateway fees in the UK?
Payment gateway fees in the UK typically combine a percentage of each transaction with a fixed pence charge. Stripe charges 1.4% + 20p per transaction for UK and European personal Visa and Mastercard cards. PayPal charges 2.9% + 30p. Worldpay charges 1.5%–2.5% plus a fixed fee, negotiated by volume, with an additional monthly platform fee of £19–£45. Adyen and Checkout.com use interchange-plus pricing, typically 1.2%–1.6% plus a fixed fee at scale, with no monthly fee.
What is the cheapest payment gateway in the UK?
Stripe is the cheapest payment gateway for most UK businesses at 1.4% + 20p per transaction for UK and European personal cards, with no monthly fee and no contract. At £10,000 monthly volume that costs around £200 a month. GoCardless is cheaper still for subscription and Direct Debit payments at 1% per transaction capped at £4, but it does not process card payments in the traditional sense.
What is the best payment gateway for small businesses in the UK?
Stripe is the best payment gateway for most UK small businesses in 2026 thanks to its lowest published transaction rate of 1.4% + 20p, no monthly fee, no contract and reliable plugins for Shopify and WooCommerce. Mollie is a strong alternative for businesses with significant European customer bases. PayPal suits businesses where buyer trust is the primary concern despite its higher fee of 2.9% + 30p per transaction.
What is the difference between a payment gateway and a payment processor?
A payment gateway is the technology that captures and encrypts payment data at the point of checkout, whilst a payment processor handles the actual movement of funds between your customer's bank and your merchant account. In practice, most UK providers bundle both services together. Stripe, Worldpay and Adyen act as both gateway and processor. Some businesses use a separate gateway with a standalone acquiring bank, though this is less common for smaller merchants.
How much does it cost to integrate a payment gateway?
Integrating a payment gateway costs nothing if you use a no-code plugin for Shopify or WooCommerce. Stripe, Mollie and PayPal all offer free plugins that go live in under an hour. A hosted payment page requires minimal development. A full custom API integration typically takes a developer two to five days, costing £800–£4,000 at UK rates of £400–£800 per day. Ongoing PCI DSS compliance and scheme update maintenance add further developer time each year.
Which payment gateway works with Shopify and WooCommerce in the UK?
Stripe, PayPal, Mollie, Worldpay, Adyen and GoCardless all work with both Shopify and WooCommerce in the UK via official plugins or native integrations. Shopify Payments is the only gateway exclusive to Shopify. Using it removes the 0.5%–2% third-party transaction fee Shopify otherwise charges. For WooCommerce, Stripe has the most widely tested plugin and the lowest published rate at 1.4% + 20p for UK cards.
What is the difference between a hosted and a self-hosted payment gateway?
A hosted payment gateway redirects your customer to the provider's own checkout page to enter card details. PayPal and Worldpay's Pay by Link operate this way. A self-hosted gateway keeps the customer on your own website throughout checkout, using either an embedded form or a direct API call. Self-hosted gateways like Stripe Elements give more control over the checkout experience but require more developer effort and place greater PCI DSS responsibilities on your business. Read our hosted vs self-hosted gateway guide for a full breakdown.
Are there payment gateways with no transaction fee in the UK?
No UK payment gateway operates with zero transaction fees. All charge per payment as their primary revenue model. Some gateways charge no monthly fee (Stripe, Mollie, GoCardless, PayPal), which makes them free to set up and maintain in the absence of sales. A few providers bundle gateway costs into a flat monthly subscription, which can appear fee-free per transaction at high volume but typically works out more expensive at low volume.
How do payment gateway charges compare across providers?
At £10,000 monthly volume with around 300 transactions, the estimated gateway cost is roughly £200 on Stripe (1.4% + 20p), £230 on Mollie (1.8% + 25p), £290 on PayPal (2.9% + 30p), and £200–£220 on Worldpay (1.5% negotiated) before the £19–£45 monthly platform fee. At £100,000 monthly volume, Adyen and Checkout.com's interchange-plus models typically become more cost-effective than Stripe's flat rate.
Which payment gateways handle high-volume UK transactions well?
Adyen, Checkout.com and Worldpay are the strongest choices for high-volume UK transaction processing. Adyen uses interchange-plus pricing that becomes cheaper than flat-rate models above around £500,000 a year and offers a single integration across online, in-store and international payments. Checkout.com provides direct acquiring in 20+ markets with dedicated account management. Worldpay has the broadest card scheme coverage and is well-established with UK enterprise retailers.
What payment methods can I accept in GBP through a UK gateway?
All major UK payment gateways support Visa, Mastercard and Maestro debit and credit card payments in GBP. Stripe, Adyen, Checkout.com and Worldpay additionally support Apple Pay, Google Pay, American Express and PayPal. Mollie adds iDEAL, Bancontact and SEPA Direct Debit for European customers. GoCardless supports GBP Direct Debit through Bacs, and open banking payments via its Instant Bank Pay feature. Klarna and PayPal Credit can be added as buy-now-pay-later options alongside most gateways.
What should I check before signing a payment gateway contract?
Before signing, check the contract length and early termination fee. Worldpay and Paysafe contracts of 12–36 months can carry exit penalties of several hundred pounds. Verify the settlement speed and whether a faster payout incurs an additional charge. Confirm the full fee schedule including PCI compliance fees, chargeback fees and minimum monthly service charges. Check whether rates are fixed or can be amended by the provider mid-contract. Our guide on early termination fees covers what to look for.
