Compare the Best Payment Gateways in the UK

Worldpay is the best payment gateway overall thanks to its low transaction fees, unbeatable transfer speeds, and the fact that it integrates seamlessly with ecommerce platforms.

The best payment gateways come with low fees, offer quick fund transfers, and have robust security features to protect sensitive customer and merchant data.

While Worldpay certainly offers online merchants a lot of flexibility, it’s not the only option out there. We’ve compared several merchant service providers that offer payment gateways that allow businesses to process card payments quickly and securely.

Best Payment Gateways for UK Businesses: Comparison

The table below summarises our top-ranked payment gateway providers for UK businesses, their basic pricing information, and the scores our expert researchers gave them.

1. Worldpay: Best Payment Gateway Provider

Worldpay earned its place as the best payment gateway provider due to its low transaction fees that start at 1.3% + £0.20 for online transactions (much lower than the average 2.5%), its wide range of integrations, and great help and support options for getting assistance and even interacting with other merchants.

Why we recommend Worldpay

Worldpay’s 30-minute fund transfer time (for shoppers’ banks that support its Fast Access ability) blows all other transfer times out of the water. Its regular transfer time beats the majority of the competition too, matching Square’s next-business-day window. This super speedy timeframe makes Worldpay a good fit for business accounts that need predictable cash flow.

You’ll also be able to accept over 120 currencies using Worldpay, with no need for APIs, as is the case with takepayments. This is a feat only beaten by Stripe, which automatically supports 135+ currencies.

That leads us to one of Worldpay’s other standout features: the vast number of integrations it offers. Over 100 software integrations are possible with Worldpay, including tools for customer relationship management, accounting, analytics, and ecommerce.

This makes it easy to scale your payments and accounting procedures. You won’t need to change providers as your business grows, instead, you can opt for the integration you need as your business’s needs change and develop.

Worldpay pricing

Worldpay offers businesses two payment gateways for taking online payments: Worldpay eCommerce and Simplicity Payment Gateway. Worldpay doesn’t clearly define what the difference is between these two systems, so we recommend contacting them for more details.

For both, you’ll need to commit to a minimum 18-month contract, which is longer than all other providers we’ve tested. There are exit fees to pay (variable depending on your contract status) if you leave early, too.

If you’re also interested in Worldpay’s card machines for in-person selling, here are the costs:

• Card machines: From £17.50 + VAT per month
• In-person transaction fees: Custom (from 0.75%)

Where could Worldpay improve?

Worldpay has long contract lengths compared to most competitors, with minimum contracts typically 18 months, compared with the 12 months most competitors offer. This means it’s not the best option for merchants who require flexibility. If that’s you, zero-contract options like Square or Stripe are a better choice.

It also charges extra for reporting tools (from £4.99 per month) and for keeping you PCI compliant (from £5 per month), potentially racking up your monthly overheads. Providers that don’t charge extra for PCI compliance include Stripe, Zettle, SumUp and Square.

What type of business is Worldpay suitable for?

• Merchants who want to stick with the same provider long-term
• Ambitious businesses interested in taking omnichannel payments (including in-person, online, and over-the-phone)
• Businesses with high transaction volumes that want to benefit from low custom fees

2. takepayments: Best Flexible Payment Solutions

takepayments’ negotiable fees, designed to meet individual budgets, make it a cost-effective choice for your business. It also stood out because of its wide range of payment options and reporting features.

Why we recommend takepayments

Besides offering bespoke pricing designed to meet the budgets of small businesses, takepayments also offers a range of online payment solutions beyond its payment gateway, making it a great option for businesses looking to sell through a variety of channels.

On top of takepayments’ payment gateway, merchants can accept payments via pay-links, QR codes, and even a payment app. And of course, takepayments offers cards machines and EPOS systems for accepting in-person payments. Plus, takepayments integrates with over 50 online shopping carts too (although Square can build you a full-blown online store, making it one of the easiest options to take payments online).

takepayments also has great reporting and management capabilities, allowing for customised product categorisation, real-time inventory tracking, and employee sales tracking. Worldpay charges extra for these types of features but with takepayments, they’re included in your package.

takepayments pricing

• takepayments transaction fees: Custom
• takepayments minimum account fee: From £20 per month
• takepayments card machine cost: From £25 per month

All of takepayments pricing is custom and negotiable, making it one cheapest ways to take payments, especially for high-volume sellers. Its average contract length is 12 months, which is the industry standard.

Where could takepayments improve?

One of takepayments’ strengths is also one of its faults. While being able to negotiate all your fees can lead to a lower price, this quote-based approach results in an obscure pricing structure. That can be off-putting since you won’t know how much to budget for takepayments’ service before getting a quote.

Not helping matters is that takepayments charges high fees for early termination – a £30 per month non-use charge and a £40 early termination charge. This isn’t something you have to worry about with zero-contract payment gateway providers like Square or SumUp, who are also very upfront about their pricing.

Lastly, although takepayments can support over 170 currencies, this is only available via APIs and not built into the platform. If you want less fuss, you could go with Stripe, which supports 135 currencies with no need for coding.

What type of business is takepayments suitable for?

• High-volume sellers looking for low custom fees
• Small businesses, such as cafes, restaurants, or salons, looking to take payments through a variety of channels
• Businesses that want access to a robust set of reporting tools

3. Square: Most User-Friendly Platform

During our usability testing, Square was the clear favourite amongst our participants thanks to its modern, user-friendly approach to taking payments, with a similar interface used across all its products, from its payment gateway to EPOS system.

Why we recommend Square

As mentioned, the thing that stands out about Square is its intuitive, fully functional ecosystem for taking payments, thanks to the fact that the layout is the same across Square products.

Another highlight is the fact that Square offers very transparent pricing and is a zero-contract provider, giving businesses the flexibility to stop and start whenever. Online transaction fees start at 1.4% + £0.25 for UK cards, which is almost as low as Worldpay’s fixed-rate fees. Unlike Worldpay, however, Square specifies what it charges for premium and non-UK cards, with fees going up to 2.5% + £0.25.

Square also goes one step further than most competitors when it comes to taking online payments. Although it offers a payment gateway that can be integrated into an existing online store, Square also offers an e-commerce platform builder. On top of this, businesses can take in-person payments using Square’s card machines or its fully-fledged native EPOS system, which we rated the best EPOS system for UK businesses.

Square also offers the fastest payouts of any zero-contract payment gateway provider we’ve researched and can get your money to you the next day. It’s only beaten by Worldpay, which can transfer funds in 30 minutes but is a contract-based provider.

Square pricing

• Square transaction fees: 1.75% (in-person); 1.4% + £0.25 for UK cards/2.5% + £0.25 for non-UK cards (online); 2.5% (invoices, keyed-in, and over-the-phone)
• Square monthly fees: None
• Square ecommerce builder costs: £0-£64/month
• Square card machine cost: From £19 + VAT (purchase)
• Square EPOS system cost: £0-£69/month

Square’s pricing is straightforward, employing a pay-as-you-go model without any hidden costs or contracts.

Also, if you plan on expanding into a physical location in the future, Square lets you easily upgrade to an advanced EPOS solution and sells all the hardware you need, from terminal stands to cash drawers. If you’re curious about EPOS systems costs, see our full breakdown.

Where could Square improve?

While Square’s lack of monthly fees and range of free software offer great value for money, if you want access to more advanced features, such as in-depth reporting and analytics, whether that be for Square’s online store or EPOS software, you’ll need to upgrade to one of its paid plans. Unfortunately, doing this doesn’t lower your transaction fees, which at 1.75%, are quite high for in-person payments.

Square also doesn’t support multiple currencies for in-person sales, which can be limiting if you’re a business that has international customers that travel to visit your bricks-and-mortar store.

What type of business is Square suitable for?

• Small businesses looking to accept online and in-person payments
• Businesses that want to use the same provider for payment processing, ecommerce, and EPOS
• Businesses that need a flexible zero-contract solution

4. Stripe: Best For Security

Stripe was particularly strong on the security front, offering businesses excellent fraud protection, which is particularly important when processing online transactions since these are at higher risk of fraud. And there’s much more to it than that: Stripe charges no monthly fees and offers weekend payouts.

Why we recommend Stripe

Stripe’s security is top-notch, largely down to its Radar for Fraud Teams. This fraud detection system is built directly into the payment flow and combines a customisable rules engine with machine learning algorithms. Simply put, it can detect patterns across payments from every business processing payments via Stripe.

The likes of Shopify and Worldpay also have fraud analysis systems, while all our picks are PCI compliant (with most holding an ISO 27001 certificate, too). However, by implementing their security measures within the payment flow, Stripe comes out on top in this category.

Like Square, Stripe is a zero-contract provider that has zero monthly fees, and it doesn’t perform a credit check, allowing customers who might have a poor credit score to use its payment solution.

And, with pre-built API integrations for just about any ecommerce apps you work with (Shopify, Magento, and WooCommerce all come to mind), Stripe’s payment gateway should slot seamlessly into your online business’s current setup. It also supports 135+ currencies and can display pricing in the customer’s currency during online checkout for an additional 2% fee per successful transaction, making it easy to serve international customers.

Stripe pricing

• Stripe transaction fees: 1.4% + £0.10 (UK in-person), 2.9% + £0.10 (non-UK/EU in-person); 1.5% + £0.20 (UK online), 2.5% + £0.20 (for EU online), 3.25% + £0.20 (international cards online)
• Stripe monthly fees: None
• Stripe card machine cost: From £49 + VAT

Stripe’s transaction fees are lower than other zero-contract competitors such as Zettle, SumUp, and Square. However, Stripe charges very high fees of 3.25% + £0.20 for online transactions made with non-UK and non-EU cards.

Where could Stripe improve?

Stripe has the slowest payout time of any provider we tested, taking 3-7 business days to transfer funds. You can pay for a next-day payout, but you’ll incur a 1% cut to your payout volume.

Stripe card machines are also some of the more expensive on the market, with the cheapest one costing £49 + VAT, and the most expensive one costing £279 + VAT. Given that none of these card readers have 4G connectivity, that’s a steep price to pay, although we should note that Stripe’s most expensive card reader is a mini EPOS device, so the price could be worth it for some retail stores or restaurant owners.

What type of business is Stripe suitable for?

• Businesses that sell online domestically and internationally and need robust security
• Merchants that want to reduce monthly fees
• Businesses that want low transaction fees while still being contract-free

5. SumUp: Best for Food Trucks Looking to Speed Up Payments

SumUp is a superb pick for any mobile merchant that needs to set up fast and take a variety of payments immediately. It’s particularly good for food trucks or coffee carts looking to speed up orders and reduce queues by combining online and in-person ordering since SumUp offers a free ecommerce platform and free hospitality EPOS software.

Why we recommend SumUp

With SumUp, you’ll be able to accept payments through a variety of channels. This includes not only a payment gateway that integrates with popular online stores like Wix and WooCommerce but also a free online store builder. We do, however, think that Square’s online store builder offers more functionality than SumUp’s since Square offers advanced paid versions while SumUp doesn’t.

SumUp also has a new ‘Order and Pay’ solution designed specifically to facilitate payments for takeaway vendors. It allows customers to access the menu by scanning a QR code, and place an order online. That said, the feature isn’t yet widely available and requires businesses to sign up to a waitlist.

Connecting to your SumUp account is easy and can be done via a smartphone through the SumUp app. Like Square, SumUp’s interface is clean and modern, avoiding the clutter seen with some other payment providers, and we could easily access a report showing our total sales and transaction fees. Using a smartphone eliminates the need for additional hardware purchases, making SumUp a low-risk option for on-the-go businesses that need to stay mobile.

Plus, businesses can get access to extremely low fees of 0.99% for both online and in-person transactions if they sign up to a SumUp One account for a modest £19 per month, less than what you’d pay monthly with takepayments and Worldpay.

SumUp pricing

Although SumUp doesn’t charge monthly fees on its most basic plan, for £19 per month, you can sign up to its SumUp One plan, and get transaction fees reduced to 0.99% for both online and in-person sales, down from 1.69% and 2.5%.

Lastly, if you’re a new merchant, you should be aware that SumUp will perform a credit check on you (it doesn’t do this if you’re established), so it’s not a good option for those with poor credit scores.

For in-person payments, here are the prices:

• Card machines: £34 to £79
• EPOS software: £0 to £49/month

Where could SumUp improve?

On the downside, SumUp has the slowest payout time of any provider we tested, taking 3-7 business days to transfer funds. You can pay for a next-day payout, but you’ll incur a 1% cut to your payout volume.

Transaction fees are also a little high on the pay-as-you-go, especially for online payments. The 2.5% fee SumUp charges is the national average, but many competitors offer lower fees, including zero-contract options like Square (1.4% + £0.25).

What type of business is SumUp suitable for?

• On-the-go food and beverage businesses looking to take in-person and remote payments
• Businesses looking to use the same provider for payment processing, EPOS and online selling
• Businesses that want to avoid paying monthly fees

6. Zettle: Best For a Quick Set-up

Using Zettle by PayPal is one of the most convenient and quick ways to set up a payment gateway. It’s a zero-contract provider that’s operated by PayPal, so allows for easy integration with popular ecommerce platforms. Plus, it lets businesses use their phone to take payments.

Why we recommend Zettle

A main draw to Zettle is that it has no long-term contracts or monthly fees and is very upfront about its pricing, while traditional payment gateway providers like takepayments have a minimum contract of 18 months with variable fees. Plus, since Zettle is operated by PayPal, businesses that already have a PayPal Business account can get up and running in very little time.

Zettle impressed us with its range of 35 integrations: far more than zero-contract competitors SumUp, Stripe, Revolut or Square. These make it convenient for entrepreneurs to plug in payment processing to accounting, banking and ecommerce software.

You shouldn’t be worried about security with Zettle since it’s fully PCI compliant (something it doesn’t charge extra for), encrypts all card data, and even offers transaction protection of up to £250 in eligible chargebacks per month.

Like SumUp, all you need is your phone to get started with Zettle through its app. You’ll be able to accept in-person card payments (through card machines and a free EPOS system), send payment links and invoices, and manage your payment gateway. You also have the option to purchase card machines outright, with Zettle’s Card Reader 2 earning a spot in our list of best card machines for small businesses.

Zettle pricing

• Zettle transaction fees: 1.75% (in-person) and 2.5% (online)
• Zettle monthly fees: None
• Zettle card machine cost: From £29 + VAT (outright purchase)
• Zettle EPOS software cost: Free

Overall, Zettle’s fees are mainly transaction-based since it doesn’t charge monthly fees for using its payment gateway service, its invoicing product, or even its EPOS software.

You’ll pay 1.75% per in-person transaction, which is on the pricier end of the scale, and 2.5% per online transaction, which is quite standard across the industry, although higher than competitors Square or SumUp.

Where could Zettle improve?

Zettle isn’t the perfect payment gateway provider, however. It does perform a credit check, which does slow down the setup process – competitor Square doesn’t – and the price you pay for having zero monthly fees is higher transaction fees of 2.5% for online transactions and 1.75% for in-person transactions.

While those transaction fees are transparent, they are static, meaning you can’t negotiate a rate for your specific business needs, unlike quote-based providers Worldpay and takepayments. Plus, similar zero-contract competitors offer lower fees for selling online, such as Stripe (1.5% + £0.20) and Square (1.4% + £0.25).

Zettle doesn’t support offline payments. It also doesn’t offer a virtual terminal, for taking payments over the phone either. This is offered by competitors takepayments, Worldpay, and Square. However, you can work around this by sending payment links and invoices to customers.

What type of business is Zettle suitable for?

• Businesses that need the flexibility of zero-contract, such as pop-ups, startups, or seasonal vendors
• Merchants that already use PayPal Business
• Businesses that want a free EPOS system

7. Shopify: Best For Omnichannel Retailers

Shopify is a popular online store platform that lets businesses build a website and accept payments through it with Shopify’s own payment processing service, Shopify Payments. This saves businesses from having to use two separate providers, one for your online store building and one for your payment processing.

Plus, since Shopify offers an EPOS system for in-person payments and integrates with third-party marketplaces such as Amazon, it’s a great omnichannel sales solution for retailers.

Why we recommend Shopify

Shopify is an online store builder designed for retailers, and it can handle an extremely high volume of transactions across multiple channels. Besides accepting payments directly through their Shopify online store, businesses can integrate with third-party marketplaces such as Amazon and eBay or even sell online through social media apps like Facebook and Instagram.

Since all Shopify ecommerce websites come with a built-in payment gateway (Shopify Payments), you don’t have to worry about juggling multiple providers. Competitors such as Square and SumUp offer a similar service. However, they aren’t as scalable as Shopify, and offer fewer integrations with other platforms.

On top of solutions for online payments, Shopify also offers its own EPOS system (software and hardware) for in-person sales. It’s an iPad-based system, which means it can be set up quickly with minimal equipment.

We were also impressed by the amount of help and support options available with Shopify. There’s 24/7 live support and a great AI chatbot which gave us answers quickly. Its user forum allowed us to chat with other business owners and get advice on more complex issues, too.

Shopify pricing

• Shopify ecommerce plan costs: £5-£259/month + $2,300 USD/month for large businesses
• Shopify transaction fees: 1.5% + £0.25 and 5% (online); 1.5% to 1.7% (in-person)
• Shopify card machine cost: From £49 (WisePad 3 Card Reader)
• Shopify EPOS system cost: £89/month/location

If you have a Shopify online store and use Shopify Payments, you won’t pay third-party transaction fees, which Shopify charges if you use another payment gateway over theirs. You will, however, have to pay monthly fees for Shopify’s online store plans.

Plan fees range from a £5 per month starter plan (to sell through social media, messaging apps or a simple online store) to £259 advanced plan per month, depending on your billing cycle (monthly or yearly).

Where could Shopify improve?

Shopify’s business payouts are between 2-5 business days which is far longer than other providers like Worldpay and Square, that send payment within one day. They also don’t allow for weekend payouts, which won’t suit all business operations.

Its monthly fees for its online store plans are also high, ranging from £19 to $2,300 USD for full ecommerce features (the £5 plan is just for selling on social media). And since Shopify Payments isn’t available as a separate product from the online store, there’s no getting around these.

What type of business is Shopify suitable for?

• Omnichannel retailers looking for a provider that can grow with them
• Ecommerce businesses that have outgrown their current providers

How Does a Payment Gateway Work?

A payment gateway acts like a portal or holding room. It’s a place where one thing (the customer’s card details) needs to go through to get somewhere else (authorisation of the card by the bank involved).

It’s a term typically used to describe technology that handles online payments. However, payment gateways are also used during in-person payments.

Let’s take a look at where a payment gateway sits in a typical online card transaction:

There is one more detail to note: you’ll need a merchant account before you can start taking payments. A payment gateway makes the transaction happen, but you still need somewhere for the money to go.

Payment gateways commonly come as part of a package when you set up a merchant account, like with takepayments or Worldpay. Some providers may charge an additional fee for this service. Other payment services, such as a virtual terminal, a pay-by-link feature, an invoicing tool, or even an ecommerce platform builder, are also often offered by payment gateway providers.

How To Switch to a New Payment Gateway Provider

If you’re unsatisfied with your current payment gateway, it may be time to consider switching to a new provider. Here’s a rough guide to doing so:

• Check your current contract to find out whether it’s possible to switch without paying a fee – or, if there is a fee, how much you’ll need to budget for it.
• Research and select a new provider that meets your needs, integrates well with your existing structure, and offers fair fees and terms that suit your needs. Once you’re happy with your selection, notify your current provider that you’re switching as per the conditions of your contract.
• Follow your new provider’s onboarding process to set up and thoroughly test account integration, and perform test transactions. It can be helpful to plan a transition date and time in advance to ensure it goes smoothly.
• Execute the transition to your new provider – update your website, cart, and customer payment profiles to your new system. Monitor the new system closely when it is live, and run reports to validate the success of the switch.

The main things to focus on are choosing a suitable new provider that fulfils the criteria that your current gateway does not, testing the integration completely before going live, planning the timing of the switchover, updating all payment links and profiles, and verifying transactions post-switch. With the correct preparation, it can be a smooth transition.

We recommend considering all of the available options on the market when switching to a new provider. Since there are a lot of providers to choose from, you can make life simpler by using our free comparison tool, which will match you with providers that best suit your needs. They’ll then be in touch directly with tailored quotes, so you can compare the best, most accurate prices for you.

Top Seven Things To Consider When Choosing a Payment Gateway Provider

Whether you’re just starting out or switching providers, when shopping for your payment gateway provider, be sure to bear the following factors in mind:

1. International support

In today’s world, you can’t afford to lose business from abroad – or because a buyer didn’t have the right credit card. Make sure your payment gateway supports different card types and currencies. This will help keep your business blossoming beyond borders.

2. Transaction volume

Payment gateway fees are fickle things; transaction rates often go up and down depending on your turnover. Review how much you’re selling using your current gateway — or, if you haven’t started yet, how much you expect to sell. It’s important when it comes to selecting the cheapest supplier for your business.

3. Customer support

Time is money. If there’s an issue with your payment gateway, you’ll need it sorted as quickly as possible. That, or risk missing out on sales.

What kind of customer support does your provider offer? Is it just a web-based service like a chatbot, or can you call up and speak to a real person? Is it available 24/7, or just during business hours?

4. Hosted or API?

If you have an online store, at some stage, you’ll also need to think about how you want to add a payment gateway to your website.

The easiest option is to host it on the payment provider’s site. This is also ideal because it means you don’t have to worry about tricky PCI compliance. However, your customers get redirected away from your site to pay – not great for brand-building, or the customer journey at large.

The other option is to use an API integration to slot your payment gateway straight into your website. It makes for a smoother payment experience for the customer, although you’ll need some technical knowledge to implement this.

5. PCI DSS compliance

This is the Payment Card Industry’s (PCI) Data Security Standard (DSS). It’s designed to help protect cardholder data and reduce fraud. No matter how big your business is, you’ll need to stay compliant – if you’re taking card payments, that is.

Make sure your payment gateway provider is PCI DSS compliant before you go anywhere near a contract!

6. Online cart compatibility

A payment gateway processes the transaction, but if you’re selling via a website, it still needs a shopping cart system in place. That’s where your customers browse your products, add stuff to their carts, and eventually hit ‘checkout’.

Your payment gateway and your shopping cart system need to talk to each other, to ensure your buyer’s journey is a smooth one. This is why you need to make sure your payment gateway provider offers integration with whatever current shopping cart you’re using, or are planning to adopt.

7. Hardware compatibility

If you want to keep some of your existing hardware, make sure the payment gateway provider you choose supports it. This will make it easier to keep track of all your transactions.

This could mean anything from receipt printers to cash drawers and kiosks.

How We Test Payment Gateway Providers