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 UK businesses can choose depends on transaction volume, technical resources and which currencies you need to support.
With online transaction fees ranging from 1.4% + 20p to 2.9% + 30p, and monthly platform fees of £19-£45 stacked on top for some providers, the difference between gateways can run into thousands of pounds a year for a growing ecommerce business. Comparing properly - not just headline rates but contracts, integration effort and settlement times - is essential before you commit.
Compare Payment Gateways — At a Glance
| Provider | Best For | Transaction Fee | Monthly Fee | Contract | Rating /5 |
|---|---|---|---|---|---|
| Developers and scaling ecommerce | 1.4% + 20p (UK/EU) / 2.9% + 20p (int'l cards) | £0 | No contract | 4.7 | |
| Quick setup and buyer trust | 2.9% + 30p | £0 | No contract | 4.2 | |
| Established retail and high volume | 1.5%-2.5% + fixed fee (negotiated) | £19-£45 | 12-36 months | 4.0 | |
| UK-based businesses wanting familiarity | 1.5%-2.9% + 20p | £20-£30 | Monthly or annual | 3.9 | |
| Large multinational ecommerce | ~1.2%-1.6% + fixed fee (interchange++) | £0 (volume-based) | No fixed contract | 4.5 | |
| SMEs wanting simple European payments | 1.8% + 25p | £0 | No contract | 4.4 | |
| Recurring Direct Debit payments | 1% (capped at £4) | £0-£49 | No contract (Pro plan annual) | 4.5 | |
| UK-regulated businesses needing tailored rates | From 1.5% + 15p (negotiated) | Custom | Negotiable | 4.1 | |
| Businesses already banking with Revolut | 1% + 20p (EEA cards) | £0-£100 (plan dependent) | No contract | 4.2 | |
 Shopify Payments |
Shopify store owners wanting native integration | 1.7% + 20p (UK cards, on higher plans) | Included in Shopify plan | Monthly Shopify subscription | 4.3 |
Top Payment Gateways Reviewed
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 handles everything from subscriptions to marketplaces, though smaller non-technical merchants may find the raw API overwhelming without a plugin.
- Excellent developer experience and documentation
- Supports 135+ currencies and dozens of payment methods
- No setup or monthly fees, pay only per transaction
- International card fees add up quickly for global sales
- Support is largely self-serve unless on higher tiers
Transaction fee: 1.4% + 20p (UK/EU cards)
PayPal
PayPal's biggest strength is instant customer recognition - shoppers trust the brand and checkout is familiar, which can lift conversion for smaller or newer stores. Fees are among the highest in this comparison, though, so it suits businesses prioritising trust over margin.
- Widely recognised by UK shoppers, boosting checkout confidence
- Extremely fast to set up with no technical skill required
- Buyer and seller protection built in
- Highest standard transaction fee in this list
- Fund holds and account restrictions are a common complaint
Transaction fee: 2.9% + 30p
Worldpay
Worldpay is a long-established name in UK card processing, popular with retailers wanting a dedicated account manager and negotiated rates. Its strength at high volumes comes with the trade-off of longer contracts and less flexibility than newer challengers.
- Strong track record and reliability at enterprise scale
- Negotiable rates can beat competitors at high volumes
- Wide acquiring and card scheme coverage
- Contracts often lock businesses in for 12-36 months
- Monthly fees and setup costs less competitive for small merchants
Transaction fee: from 1.5% + fixed fee (negotiated)
Adyen
Adyen is built for scale, offering a single platform for online, in-store and international payments used by many large UK and European retailers. Its interchange++ pricing model can be genuinely cheaper at volume, but it is overkill for small merchants needing a simple checkout.
- Transparent interchange++ pricing rewards high volume
- Single integration for online, mobile and in-person payments
- Excellent international and multi-currency support
- Not designed for very small businesses or low-volume sellers
- Onboarding and account management can feel enterprise-heavy
Transaction fee: ~1.2%-1.6% + fixed fee
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's a strong middle-ground choice for SMEs that want more payment methods than PayPal without Adyen's complexity.
- Simple, transparent flat-rate pricing with no monthly fee
- Strong support for European local payment methods
- Fast onboarding, often live within a day
- Fewer advanced enterprise features than Adyen or Worldpay
- UK customer support hours are more limited than bigger players
Transaction fee: 1.8% + 25p
GoCardless
GoCardless isn't 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 fees. It pairs well with Stripe or another gateway for businesses needing both cards and Direct Debit.
- Capped fees make it very cheap for larger transaction values
- Significantly reduces failed payment and churn rates for subscriptions
- Simple integrations with major accounting and subscription platforms
- Not suitable as a sole solution for one-off card payments
- Direct Debit payments take days to clear, unlike instant card auth
Transaction fee: 1% (capped at £4 per transaction)
Revolut Business
Revolut's payment gateway is a natural fit for businesses already using Revolut Business for banking, offering competitive rates on European cards and fast integration with its own dashboard. It's less established as a standalone gateway than Stripe or Adyen, so due diligence on support quality is worthwhile.
- Competitive rates on EEA card transactions
- Seamless if already banking with Revolut
- Modern dashboard with real-time reporting
Frequently Asked Questions
What is a payment gateway and do I need one?
A payment gateway is a technology that securely transmits payment information from your customer's card or digital wallet to your merchant account, encrypting sensitive data in real-time. You need one if you accept online payments - whether through a website, mobile app or point-of-sale terminal - as it's a legal requirement under UK Payment Services Regulations.
What is the cheapest payment gateway in the UK?
The cheapest payment gateways in the UK typically charge between 1.4% and 2.2% per transaction for card payments, with providers like Stripe, Square and Wise offering competitive rates at the lower end of this spectrum. However, the absolute cheapest option depends on your transaction volume and payment methods used, as some providers offer flat fees rather than percentage-based pricing.
What is the best payment gateway for small businesses in the UK?
Stripe and Square are widely considered the best for UK small businesses due to their straightforward pricing, user-friendly interfaces and lack of setup fees or minimum turnover requirements. PayPal Commerce Platform is another strong contender, particularly if you already use PayPal, offering competitive rates from 2.49% plus 20p per transaction and integration with most UK business platforms.
What is the difference between a payment gateway and a payment processor?
A payment gateway is the technology that securely captures and transmits payment data, whilst a payment processor is the service that actually handles the transaction with the customer's bank. In practice, many UK providers offer both services bundled together, but technically the gateway is the interface and the processor manages the financial side of the transaction.
Which payment gateway works with Shopify and WooCommerce in the UK?
Stripe is the most widely compatible payment gateway, working seamlessly with both Shopify and WooCommerce through native integrations and plugins. Square, PayPal and Wise are also fully compatible with both platforms in the UK, offering plugins or official integrations that can be installed within minutes.
How to Choose the Right Payment Gateways
Selecting the right payment gateway depends on your business model, transaction volume and customer base. The best choice balances cost, functionality and ease of integration with your existing systems.
Consider these key factors when evaluating UK payment gateways:
- Transaction fees: Compare percentage rates and fixed charges across providers. Higher volumes often unlock better pricing tiers.
- Payment methods supported: Ensure the gateway accepts cards, digital wallets, bank transfers and other methods your customers prefer.
- Settlement times: Check how quickly funds reach your account - same-day or next-day settlement matters for cash flow.
- Security and compliance: Verify PCI DSS certification and whether the provider handles regulatory requirements like Strong Customer Authentication.
Test the onboarding process and customer support quality before committing. A gateway that integrates seamlessly with your ecommerce platform or point-of-sale system will save time and reduce errors during transactions.
Browse All Payment Gateways
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