Whether you run your own business, or you are a consumer, you can’t deny how indispensable online payment is. With the introduction and growth of online shopping and trading, there has been a need for reliable payment gateways in the UK and the world at large.
In 2023, statistics show that 80% of UK buyers now shop online. This calls on business owners to grow their customer base especially online. With e-commerce growing rapidly throughout the world, it is only necessary that fast processing and secure payment gateways come into the picture.
A payment gateway helps customers make fast and secure payments without their data getting stolen. As a business owner, you can also set up these payment gateways on your e-commerce websites as a payment gateway integration. Most businesses owned by stay-at-home Mums utilize payment processing gateways.
It is next to impossible to say a payment gateway is the unopposed best payment gateway in the UK because there are many great and reliable payment gateway options in the market.
So I have prepared a list of tested and trusted payment gateway option for UK users, that has customer satisfaction at the base of their operational guide.
1. PayPal
2. Stripe
3. Opayo
4. Worldpay
5. Braintree
6. Cardstream
7. Klarna
What is a Payment Gateway?
It is a technology that accepts and transfers payment data from customers to business owners and vice versa (in case of a refund).
A payment gateway first checks the customer’s card details using secure technology to ensure that funds are sufficient, and then proceeds to make payment to the merchant account.
You can say a payment gateway acts as a middleman between merchants and their customers to ensure that transactions are carried out properly and securely.
Please note that these services can be provided by either a bank or an authorized payment service provider.
1. PayPal
Paypal is considered the world’s most familiar, preferred, and trusted payment gateway brand. Founded in December 1998, the brand continues to develop various security software. It supports almost all international debit and credit cards. Large companies such as Amazon, use PayPal as a payment gateway.
They have world-class security for carrying out any transaction online without a breach. They also monitor the transactions online to prevent the customers from fraud.
PayPay has received over 20 awards of excellence and huge recognition from the internet industry and business community. They won the Webby People’s Voice Award and Webby Award for Best Financial Services site in 2006.
They are best known for being user-friendly to businesses and conducting fast transfers.
Features:
- Prevents fraud
- Easy to set up
- Offers buy now, pay later solutions
Pros:
- Accepts international payment
- It is easy to pay directly via your PayPal account
- Accepts recurring payment
Cons:
- High payout fees for low-volume merchants
- Customization is only possible on the expensive version.
2. Stripe
Dual headquartered in Dublin and San Francisco, Stripe is an Irish-American financial services and software company. In the UK, stripe payment systems have gained wide popularity because of their transparent pricing.
It is also easy and possible to set up recurring billing and direct debt services using Stripe. Stripe offers payment gateway integration on your e-commerce website, they also have the option for hosted payments page.
The software has been designed to support businesses of any size. It is a uniquely designed payment processing gateway in the UK that offers payment gateways with several ranges of APIs. The business owner has the option to customize the look of the payment page based on the store’s design.
This helps customers have a streamlined and pleasant experience. It also accepts almost all international credit and debit cards and even accepts payments in over 100 currencies. Companies like Google, Shopify, and Unicef use and trust Stripe.
Features:
- PCI compliant
- Live sales reporting
- Flexible invoicing
Pros:
- Simple and transparent pricing
- Payment gateway page can be customized
- Built for all business sizes
Cons:
- Technical knowledge needed to fully understand and operate the software
- Not suitable for physical store owners
3. Opayo
The Sage Pay group is commonly known as Sage and it is the UK’s second-largest technology company. Formerly Sage Pay, now Opayo, this company is headquartered in Newcastle upon Tyne, United Kingdom. It is a secure, trusted, and reliable payment solution for business owners.
Opayo is trusted by small and large businesses such as Cass Art London, Krispy Kreme, and a host of others. It is also an all-in-one merchant account and a payment service provider. Opayo also offers a range of payment processing solutions for offline and online businesses.
It is considered one of the best payment processing payment gateways in the world. SagePay as it was formerly called also accepts credit card and debit card payments from all companies and processes payments in 25 different currencies.
Features:
- Fraud protection tools
- Split payments are supported
- POS integration
Pros:
- Recurring billing supported
- Highest level of security
- Transparent pricing plans
Cons:
- Technical support calls are not free, they cost 2pc per minute
- Technical know-how is required to be able to handle.
4. WorldPay
WorldPay is the UK’s leading online payment processing gateway provider and processes half of the payments taking place in the United Kingdom. In June 2019, WorldPay was acquired and merged into Fidelity National Information Services (FIS). The company now has over 20,000 active customers.
As stated by Statista, WorldPay was the leading acquirer in the UK with nearly 7.9 billion transactions processed, as of 2017. They have received several recognitions such as Best Performing Gateway from FIS U.S. e-commerce and Awards for the highest rate of successful authorizations and highest uptime.
Worldpay as a merchant service and payment processing service provider offers to carry out online transactions for its customers. They provide payment solutions to both small and large business enterprises.
Features:
- All cards are accepted
- Real-time reporting is available
- Secure payments
- Price plans are flexible enough
Pros:
- ACH Payment processing
- Offers virtual terminal
- Recurring billing
- Provides payment solutions to small and large enterprises
Cons:
- A little bit expensive
5. Braintree
Designed to integrate with all kinds of e-commerce platforms, Braintree offers an easy-to-access and easy-to-use payment processing gateway. It enables small and medium businesses to accept payments via their website or mobile app.
Braintree was acquired by PayPal in 2013 and now operates as an independent subsidiary. It is also one of the most used payment gateways in the world with over $30 billion in transactions. They also accept ACH payments, debit and credit cards.
It is easy to set up and customize according to merchant/customer needs. They also provide free fraud protection for all their merchants and additional security features like payer authentication and recurring billing.
Features:
- Allows the customer to pay with a simple phone number
- Accepts any type of card, including gift cards
- Accepst transfers from 26 different currencies
- Supports Bitcoin transactions
Pros:
- It has an affordable pricing plan
- It offers a higher level of fraud and chargeback protection.
Cons:
- Braintree does not offer software development kits which may be inconvenient for some developers
6. Cardstream
Cardstream is a payment gateway that offers business owners a user-friendly, affordable, and efficient means of accepting online payments. It supports all major credit and debit cards. The Cardstream network also covers over 27 countries and more than 96% of the global population.
The company offers a customizable checkout process to make the purchase process more user-friendly. They provide instant, secure, and reliable payments. It is an extension of Stripe which has helped millions of merchants accept payments online.
Features:
- Coupons on products or services based on customer preferences while shopping
- Accepts Visa, MasterCard, American Express, and Discover Card Transactions in your native currency
- Discounts to repeat customers
Pros:
- Offers convenient recurring billing
- Accepts payment in multiple currencies
- Different types of transaction options
Cons:
- Hidden charges
- It is a contract of 12 months
7. Klarna
Klarna is a Swedish company that offers a payment processing gateway that provides an alternative to traditional online payments and credit/debit card transactions. They provide 100 days of purchase protection so that customers who don’t receive their items in time can get a refund.
Klarna does not have any hidden fees nor do they charge a setup fee. They also offer free shipping labels for all purchases made on the site, making it easier for customers to return what they don’t want or need.
Features:
- Accepts orders from anywhere in the world
- Offers shoppers the ability to pay for their orders over time in fixed monthly installments
- Simplifies the return process by letting customers get refunds on their purchases through klarna’s “Return” tab rather than dealing with the retailers themselves
Pros:
- Offeres instant delivery of products without any upfront costs
- Accepts credit and debit cards, PayPal and apple pay
Cons:
- Charges late payment fees
How Do I Choose The Best Payment Gateway for My Business?
Making the right choice for the payment processing gateway of your business is crucial in running your business seamlessly. Remember, customers are more likely to purchase from you when they can easily purchase products or services and make payments easily.
Here are factors to consider when choosing the right payment gateway
- Your budget
- Gateway payment support service
- Integration process
- Support for partial payment
- Bank settlement time
- Responsiveness
- Ease of checkout
- Recurring billing
Conclusion
You now have a detailed guide to help you select the right payment processing gateways for your business in the UK. Investing in a payment gateway can also be a great investment opportunity. With these payment processing gateways, it is easier to receive payments from your customers in the UK and around the world.
