How to Compare Digital Payment Gateways in the UK
At Remitly, we understand how essential digital payment platforms have become in daily life across the UK. From online shopping and bill payments to money management and business transactions, they play a vital role in modern trade. More businesses and individuals are using digital payment platforms and there’s now a lot of choice, with different features in each.
With so many options available, choosing the right payment platform is crucial. The best digital payment system can streamline transactions, enhance security, and keep your cash flow moving. So it’s an important decision for both businesses and consumers. So here’s our guide to help you choose a digital payment gateway that aligns with your business requirements in the UK.
Factors to Consider When Comparing Payment Platforms
If you’re starting a business in the UK, there’s a lot of choice when it comes to digital payment solutions. Several key factors should guide your decision:
- Fees and transaction costs
Payment services have different pricing models, including per-transaction fees, set-up costs, monthly fees, and international transaction fees. Some may also charge extra for certain payment methods, such as credit cards or digital wallets. Analysing these costs will help you find the most cost-effective option that suits your business. - Transaction limits
Some platforms set limits on how much you can process per transaction or within a given period. If your business makes large transactions or a lot of them, check that the platform’s limits suit your needs. - Seamless integration
Your payment system should easily connect with your website, app, or card reader. Platforms with easy-to-use interfaces, software development kits (SDKs), and plug-and-play features are quicker and easier to set up and get going. If you have limited technical resources, look for a platform that offers simple integration options. - Security and data protection
For some people, online payment security is the number one consideration. Platforms that comply with global Payment Card Industry Data Security Standards can be relied on to protect customer payment data. Features such as tokenisation, encryption, and fraud detection add extra protection against cyber threats. - Reliable customer support
Fast problem-solving helps keep your business running smoothly. Some platforms offer support via telephone, email, or live chat. Ideally, round-the-clock assistance ensures any transaction failures or technical issues are handled quickly, reducing downtime and revenue loss. - Multi-currency support
For businesses serving international customers, multi-currency support is essential. Some platforms convert currencies automatically, but others charge fees or make you do this manually. Knowing what currency features are available will help prevent unexpected costs and ensure smooth international transactions. - Checkout experience
A slow or complicated checkout process can lead to lost sales. The best payment gateways offer a fast, user-friendly checkout, particularly for mobile users. Features like one-click payments and autofill make checkout easier and increase sales. - Dashboard and analytics
Access to real-time transaction data helps businesses track sales and identify issues. Some platforms provide dashboards with reporting tools to monitor transaction history, refunds, and chargebacks, making financial management easier. - Customisation and branding
A consistent brand experience builds trust. Some payment gateways allow you to customise the payment page with your logo, colours, and design elements. A branded checkout reassures customers they are making payments securely on your platform rather than through an unfamiliar third party.
How to Choose the Best Payment Gateway for Your Business
Selecting the right payment gateway involves assessing your business needs and comparing available options. Follow these steps to make an informed choice:
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Assess your payment needs
Think about how many payments you process and which methods you accept, such as credit/debit cards, Buy Now Pay Later (BNPL), pay-as-you-go, cryptocurrency, or bank transfers. Also keep in mind whether you only sell locally, or you’re selling internationally. This helps you identify platforms that meet your specific needs.
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Compare payment gateways pros and cons
Evaluate the pros and cons of different payment gateway providers. Some may offer low fees but lack strong fraud protection. Others may support international payments but have high currency conversion fees. Look beyond pricing and consider factors such as integration, security, and reliability.
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Make the final decision
After shortlisting potential platforms, request demos, read customer reviews, and seek feedback from businesses in your industry. Ensure the platform complies with UK financial regulations, such as FCA guidelines, and can scale with your business. Testing the platform’s ease of use and transaction speed before committing can also help with decision-making.
Considering these factors will help you make an informed choice of payment platform—one that enhances efficiency, security, and customer satisfaction.
Popular Digital Payment Providers in the UK
The UK has a wide range of payment service providers. Some of the most popular options are:
PayPal
PayPal is an online payment platform with a website and mobile app. It offers a range of solutions for everyday business operations, like payment portals for online transactions, management tools, and credit options. Paypal offers personal or business accounts.
Key features:
- Multi-currency
Available in over 200 countries and supports 25 currencies with automatic conversion, making international transactions seamless. - Consumer protection
Protects against fraud and unauthorised transactions, offering peace of mind for both parties. - E-commerce integration
Works with Shopify, WooCommerce, Magento, and more, ensuring smooth online payments. - Mobile app
Dedicated app for mobile transactions, allowing users to manage payments on the go. - Recurring payments
Supports subscriptions and membership-based services, ideal for businesses with ongoing billing needs.
Pros:
- Global trust
Accepted by consumers and businesses worldwide, with a great reputation for security and reliability. - Robust security
Features encryption, two-factor authentication, and fraud detection to safeguard transactions and users’ data. - Quick and easy setup
Integrates effortlessly with online stores, marketplaces, and invoicing tools, saving time for businesses. - User-friendly
Simple and familiar interface that reduces checkout friction, improving the customer experience.
Cons:
- Higher fees
While it’s free for personal transactions between friends, PayPal charges different transaction fees depending on how the payment is made and where from. For online businesses, fees are a percentage of the transaction value + a small fixed fee. - Account holds and freezes
PayPal may hold or freeze accounts for security reasons and disrupt business operations. - Limited checkout customisation
Businesses have limited options to customise the checkout page to match their brand.
Stripe
Stripe is a payment gateway highly favoured by tech-focused businesses and start-ups due to its powerful and customisable features . It offers a seamless online payment processing experience with exceptional flexibility and a strong global presence.
Key Features:
- Highly customisable application programming interface (API)
Build payment solutions for your business needs. - Subscription and recurring billing
Perfect for Software-as-a-Service, memberships and automated payments. - Extensive developer resources
Plenty of explanatory documents, SDKs and integration tools to get you up and running. - Global payments
Supports 135+ currencies and local payment methods worldwide. - Multiple payment options
Credit/debit cards, digital wallets (Apple Pay, Google Pay), bank transfers.
Pros:
- Adaptable to complex business models
Offers a lot of customisation for businesses needing specific payment flows. - Transparent pricing
Payment fees vary, but they’re laid out in detail beforehand. Instant Bank Payments and ACH transfers are different, for example. But there are no hidden monthly fees. - Strong subscription management
Efficient handling of recurring payments with automated invoicing and chasing of late payments. - Good mobile and international support
Optimised for mobile payments and international transactions.
Cons:
- Requires technical expertise
It’s best suited for developers; non-technical users may find setting it up challenging. - Limited plug-and-play features
Small businesses may prefer more straightforward payment processors. - Reporting is limited
Might not reach the reporting standards some businesses need. - Customisation requires additional development effort
Advanced implementations may require dedicated engineering resources.
Worldpay
Worldpay is an online payment gateway that helps businesses to process and manage digital payments. Their solutions allow for smooth transactions whether you’re selling locally or globally.
Key Features:
- Global reach and multi-currency
Accepts 135 currencies across 225 markets so international transactions are not a problem. And it supports both online payments and point-of-sale (POS) transactions for businesses with physical locations. - Fraud detection and prevention
Integrated security to protect against fraud. Reporting and analytics options provide in-depth understanding of your sales, transactions and customer behaviours. - Broad payment method acceptance
Works with major debit and credit cards, digital wallets (Apple Pay, Google Pay), bank transfers, and alternative payment solutions.
Pros:
- Global presence and reliability
A well-established payments company that’s trusted by businesses worldwide. Offers stability and a strong track record in payment processing. - Multiple payment options
Suitable for different customer preferences. Supports a mix of traditional and modern payment methods, ensuring flexibility for both businesses and customers. - Suitable for all business sizes
Small businesses, large companies, physical shops or individual entrepreneurs. Scalable solutions cater to businesses from starting up, through growth and up to multinational size.
Cons:
- Complex pricing
Pricing is tricky to compare as transaction fees vary by type and business size. There are some examples here to give you an idea. - Limited flexibility for smaller businesses
May not be as adaptable as some of the newer payment processors. - Customer support can be slow
Some Worldpay users report slow response times from customer service.
Adyen
Adyen is an online payment gateway for individuals and businesses. Its all-in-one system for processing payments, advanced tools, low fees, and global reach make it an excellent choice for businesses aiming to operate internationally.
Key Features:
- Real-time reporting and data analytics
Offers businesses actionable insights to optimise performance. - Advanced fraud prevention
Adyen uses AI in its security systems to detect and prevent fraudulent transactions. - Extensive payment method support
Accepts a wide range of local and international payment options, including cards, digital wallets, and bank transfers.
Pros:
- Integrates across multiple sales channels
Delivers a consistent payment experience across online stores, apps, and physical locations. - Advanced data insights and real-time reporting
Helps businesses make informed decisions based on transaction trends and customer behaviour. - Scalable solution for growing businesses
Designed to support your company as it expands, right up to a global level. - Extensive international payment support
Handles transactions in 180+ currencies and payment methods worldwide.
Cons:
- Can be complex for smaller or less tech-savvy businesses
Requires some technical expertise to get the most out of setup and management. - Limited customisation options
May not offer the same level of flexibility as some competitors. - Pricing may lack transparency for lower-volume merchants
Adyen charges a processing fee, but smaller businesses might find it difficult to predict what it costs if they don’t have a lot of transactions.
Checkout.com
Checkout.com provides a wide range of payment solutions, data analytics, and worldwide transaction processing.
Key Features:
- Developer-friendly API
This allows businesses to tailor payment solutions to suit their specific needs. - Real-time data and reporting
Provides live insights into transactions and performance for better decision-making. - Multi-currency support
Enables businesses to accept payments worldwide by supporting over 150 currencies. It also offers automatic currency conversion. - Advanced security and fraud detection
Like Adyen, Checkout uses AI to spot and stop fraudulent transactions. - E-commerce integration
Works with major platforms such as Shopify, Magento, and WooCommerce.
Pros:
- Highly adaptable for complex business needs
Offers customisation so if your business needs are complicated, it can be adapted. - Comprehensive transaction insights
Real-time analytics help businesses improve revenue and track trends. - Strong global payment capabilities
Supports a wide range of international payment methods. - Enhanced fraud protection
Protects businesses and customers alike from security risks. - Ideal for scaling businesses
Designed to handle high-volume and international transactions efficiently.
Cons:
- Needs technical expertise
Custom integrations may need developer support. - Pricing structure can be complex
As it’s designed to work with companies scaling right up to multinationals, understandably Checkout’s costs vary based on transaction volume. - Less widely recognised by smaller businesses
It’s more commonly used by large firms, so for small businesses or individuals it’s probably not the right product.
Alternatives for Smaller Businesses
If you’re still getting settled and your business is new, there are cheaper and smaller options to consider. For taking card payments in person, for example, SumUp and Zettle have low-cost options that might be a better choice.
Take all this into account and you should be able to find the digital payment solution that’s just right for your business. Best of luck!
Frequently Asked Questions
Which payment gateway is best in the UK?
The best payment gateway in the UK depends on your business needs. Stripe is great for businesses that need a flexible and developer-friendly system, while PayPal is a trusted, easily set up option for individuals and businesses alike. Worldpay works well for businesses with online and in-store sales.
Which payment app is most used in the UK?
PayPal is one of the most popular payment apps in the UK, especially for online shopping. Apple Pay and Google Pay are widely used for contactless payments in shops and on mobile devices.
What is the UK equivalent of Stripe?
Checkout.com is a strong UK-based alternative to Stripe. It offers a similar developer-friendly platform with advanced analytics and global payment options. Worldpay is another well-known provider in the UK with a traditional banking background.
Which digital wallet is best in the UK?
It depends on what you need. PayPal is a popular choice for online shopping and international payments. Apple Pay and Google Pay are also excellent options. If you want a digital wallet that also offers banking features, Revolut and Monzo are good options.
What is the cheapest payment gateway?
The cheapest payment gateway depends on your business type and how many transactions you handle. SumUp and Zettle are low-cost options for small businesses taking in-person payments. Stripe offers competitive rates for online transactions. Revolut Business has affordable fees for UK-based payments. Compare prices to find the best option for your needs.