In today’s fast-paced digital world, small businesses in the UK need efficient online payment systems to keep up with customer expectations and manage cash flow. With so many options available, it can be tough to decide which payment system best suits your needs. This guide will walk you through the top online payment systems for small businesses in the UK as we head into 2025, making it easier for you to choose the right fit for your operations.

Key Takeaways

• PayPal is widely recognized and easy to use for online payments.
• Stripe offers extensive customization options through its APIs, ideal for tech-savvy businesses.
• Shopify provides a seamless payment solution for e-commerce, combining store setup with payment processing.
• GoCardless specializes in direct debit payments, simplifying recurring billing for small businesses.
• Worldpay is a comprehensive choice for both online and in-person transactions, with robust support.

1. PayPal

PayPal is a big name, and pretty much everyone has heard of it. It’s been around for ages, and a lot of people use it, which is a plus. It’s one of those things that’s just… there. You know?

PayPal boasts a massive user base and wide acceptance, making it a familiar choice for both businesses and customers.

It’s not always the cheapest option, and sometimes dealing with their customer service can be a pain, but overall, it’s a solid choice. Plus, they’re always adding new stuff, so it’s not like they’re stuck in the past. They support debit and credit cards, the PayPal wallet, PayPal credit, and local payment methods in many currencies.

• Easy to set up.
• Lots of people already use it.
• Works in many countries.

I remember when I first started freelancing, PayPal was the only way I could get paid by some of my clients. It was a lifesaver back then, even if the fees did sting a little. It’s still pretty useful, but there are definitely more options now.

PayPal is a global leader in payment systems with over 400 million active accounts. They provide services like invoicing, business payments, and point-of-sale systems. PayPal is a preferred small business payment option due to its reliability and user-friendly interface. They’ve also introduced PayPal Open, a unified platform designed to support businesses of all sizes. It offers financial and payment solutions that help small businesses manage cash flow effectively, while providing enterprise-level tools for growth and scalability.

Feature	Details
Global Reach	180+ countries
Payment Methods	160+ local payment methods, debit/credit cards
Currencies	180+ currencies
Integration	No-code plugin integrations for eCommerce platforms

2. Stripe

Stripe is a big name in online payments, and lots of businesses use it. It’s known for having a wide range of tools for handling payments and even looking at data. Stripe tries to make the checkout process smooth, which can help boost sales. You can change how the checkout looks and take payments in different ways and currencies.

They let you use credit and debit cards, bank transfers, direct debits, and digital wallets like Apple Pay and Google Pay. They also work with some "buy now, pay later" services. Stripe offers a hosted payment gateway called Stripe Checkout, modular UI’s that can easily be integrated called Stripe Elements or an API for merchants that want more control over how their online checkout.

You can connect it to other systems you might use, like shopping carts or email programs. Stripe handles major credit cards in many currencies and follows security rules.

Some people have complained about Stripe holding funds and not having great customer service when there are problems.

Stripe is good for online businesses that want something easy to use, even if it costs a bit more. They’re also getting into in-person payments, but their main focus is still on online stuff like websites and apps.

Here’s a quick look at some things Stripe offers:

• Prebuilt components (Elements)
• A prebuilt checkout form (Checkout)
• A platform for marketplaces (Connect)

Stripe lets businesses accept over 100 payment methods and can change currencies and payment methods based on where the customer is.

3. Shopify

Shopify is more than just a payment system; it’s a full-blown e-commerce platform. It’s like getting a whole store in a box, payment processing included. If you’re already using Shopify for your online store, using Shopify Payments is a no-brainer. It’s designed to work seamlessly with the platform, making everything much easier to manage.

One of the biggest advantages is the integration. Shopify Payments integrates directly with your Shopify store, which means you don’t have to mess around with a bunch of third-party integrations. This can save you a lot of time and hassle, especially if you’re not super tech-savvy. Plus, it often comes with flat-rate pricing, so you know exactly what you’re paying each month. This predictability can be a big help for small businesses trying to budget.

Here’s a quick look at some of the pros:

• Integration with Shopify’s e-commerce platform
• Flat-rate pricing
• No third-party transaction fees for Shopify merchants

Using Shopify Payments simplifies your financial operations. It consolidates your sales data and payment processing into one place, making reconciliation easier. This can save you time on bookkeeping and give you a clearer picture of your business’s financial health.

Shopify Payments uses Stripe technology, but it’s integrated fully into the Shopify dashboard and is more merchant-friendly than the Stripe platform. It allows you to take payments from customers from your Shopify or Shopify Plus-based online store in a fast, seamless and secure checkout process.

Here’s a quick comparison of Shopify Payments fees:

Plan	Monthly Fee	Online Credit Card Rates	In-Person Credit Card Rates
Basic Shopify	£25	2.9% + 30p	1.7% + 0p
Shopify	£69	2.6% + 30p	1.6% + 0p
Advanced Shopify	£259	2.4% + 30p	1.5% + 0p

4. GoCardless

GoCardless is interesting because it focuses on direct debit payments. I think that’s pretty cool, especially if you’re dealing with recurring payments. It’s not your typical card payment processor, but it fills a specific need really well. It’s used by 85,000 businesses around the world. GoCardless helps to collect funds through direct debits without the stress of chasing individual payments.

Direct debit can be a lifesaver for businesses that rely on subscriptions or regular billing cycles. It automates the payment process, reduces late payments, and improves cash flow. It’s definitely worth considering if your business model fits.

Here’s a quick rundown of what GoCardless brings to the table:

• Direct debit focus: Specializes in direct debit payments, ideal for recurring billing.
• International payments: Supports international direct debits, expanding your reach.
• Automation: Automates payment collection, reducing manual work.

And here’s a look at their pricing:

Plan	Transaction Fee	International Fee	Monthly Fee
Standard	1% + £/€0.20 (max £/€4) +0.3% over £2,000	2% + £0.20	No

5. Worldpay

Worldpay, now part of FIS, has been around the block a few times. It was spun off from RBS, sold to private equity, and then acquired by FIS. Things got a little bumpy, and in early 2024, FIS shareholders took a big loss when a private equity firm bought a chunk of Worldpay. Despite all that, Worldpay remains a major player in the UK, processing a huge chunk of card transactions.

Worldpay is a big deal for small businesses because it offers a unified service with a single merchant ID, which makes managing payments easier. They handle payments online, in stores, and on mobile devices. You can embed their payment platform, use their card payment solutions, and even form strategic partnerships.

Choosing a payment processor can feel overwhelming. Worldpay is a solid option, especially if you’re already familiar with more traditional systems. Just be sure to compare their fees and contract terms with other providers to make sure you’re getting the best deal for your business.

Here’s a quick look at their pricing structure:

• Monthly Fees: Can range from £0 to £19.95.
• Transaction Fees: Around 1.5% for Mastercard and Visa (other cards might cost more).
• Setup Fees: Sometimes none, but it depends on the plan.

They also have a pay-as-you-go option called ‘Worldpay eCommerce’ which is good for businesses with lower turnover:

• No monthly fee, no minimum charge, no setup fee.
• 1.3% + 20p for consumer cards.
• 2.9% + 20p for commercial cards.

Worldpay provides a payment gateway that accepts many payment methods and currencies. They offer both pay-as-you-go and monthly subscription plans. While their default design might look a bit old, you can customize it using their API. Over 250,000 UK small and medium businesses use Worldpay.

6. Revolut

Revolut has become a pretty big deal, with tons of businesses using it all over the world. They’re not just about online payments; they also handle in-store stuff. You can use payment links, APIs, plugins, and even a point-of-sale app. They’ve even got their own card reader thing called the Revolut Reader.

Revolut Business is used globally to accept payments online and in-store.

One thing that’s cool is that they offer a bunch of different ways to get paid. It’s not just credit cards; they also do things like Revolut Pay, which can be handy. Plus, they’re trying to make it easier for businesses to manage their money across different countries.

I remember when Revolut first came out, it was all about travel money. Now, it’s like a full-on business banking solution. It’s kind of wild how much they’ve grown. I know a few small business owners who swear by it for managing their expenses and getting paid by clients overseas.

Here’s a quick rundown of some of their transaction fees:

Card Type	Fee
UK Visa and Mastercard	1% + £0.20
UK American Express	1.7% + £0.20
Non-UK Commercial/Consumer Cards	2.8% + £0.20

Here are some reasons to consider Revolut:

• Multiple payment options
• Global reach
• No monthly fee

7. Adyen

Adyen is a Dutch payment platform that’s been gaining traction, especially among larger businesses. They combine payments, data, and financial management into one system. You can use Adyen to handle payments across different channels – online, in-store, and even mobile. It’s designed to connect all that data in one place, which can be pretty handy.

Adyen offers advanced features that are best suited to large businesses. The platform allows you to combine payment processing from a range of payment methods with useful data analytics. But Adyen’s pricing structure is relatively complex as it depends on the payment method.

They support a ton of payment methods, from regular credit and debit cards to digital wallets like Apple Pay, and they work with over 150 currencies. Lots of big names use them, like Uber and Microsoft, for handling both business and customer payments. Adyen’s payment gateway is pretty versatile.

Adyen’s pricing can be a bit confusing. They use interchange plus pricing, which means a fixed processing fee plus a fee that changes depending on the payment method. To get the most out of this, you’ll need a merchant bank account. They accept a wide range of payment methods, including credit and debit cards, direct debit, and digital wallets like Alipay and PayPal.

Adyen has invested heavily in its in-house tech stack. Combining its gateway software with merchant acquiring and processing means Adyen can reduce the fees it would otherwise pay third parties by underwriting merchants according to its own compliance standards.

8. Square

Square is a pretty well-known name, especially if you’ve ever been to a craft fair or a smaller retail shop. They’ve made a name for themselves by offering easy-to-use hardware and software, which is great for businesses that aren’t super techy. I remember when my friend Sarah started her pottery business; she was so stressed about taking payments, but Square made it super simple for her.

One of the things that stands out about Square is its all-in-one approach. It’s not just about taking payments; it’s also about managing inventory, tracking sales, and even running marketing campaigns. This can be a real lifesaver for small business owners who are trying to juggle a million different things at once. Plus, their Square Payment Gateway has a free option, which is always a plus when you’re just starting out.

Here’s a quick rundown of some of the things Square offers:

• Point-of-sale (POS) systems
• Online store builder
• Payment processing
• Inventory management

Square’s appeal lies in its simplicity and comprehensive suite of tools. It’s designed to be user-friendly, which is a big win for small businesses that don’t have a dedicated IT department. The pricing can be a bit tricky to figure out, but overall, it’s a solid option for businesses looking for an all-in-one solution.

I think the biggest advantage of Square is how accessible it is. You can get started with minimal upfront investment, and their platform is pretty intuitive. Of course, it’s not perfect. Some users have complained about the transaction fees, and if you need advanced features, you might find yourself needing to upgrade to a more expensive plan. But for a lot of small businesses, Square is a great place to start.

9. Airwallex

Airwallex is making waves as a strong contender in the online payment space, especially for businesses with global ambitions. They let you collect payments in over 180 countries using more than 160 local payment methods. This is a big deal because it can seriously boost your acceptance rates and cut down on those pesky foreign exchange fees. It’s not just about payments, though. Airwallex offers a whole suite of financial tools, from multi-currency accounts to global transfer solutions, and even expense management.

Airwallex (UK) Limited is regulated by the Financial Conduct Authority (FCA). They meet high security standards, including PCI DSS, SOC1, and SOC2 compliance. Your money is held with leading global financial institutions and safeguarded in line with local regulations.

With Airwallex, you can offer local currency pricing and payment options, which can lead to more sales. Plus, their multi-currency accounts let you settle funds in multiple currencies, potentially saving you a bundle on FX costs.

10. Wonderful and more

Okay, so we’ve covered some of the big hitters in the online payment world. But what about those other options that might be a good fit, especially if you’re looking for something a little different or more niche? Let’s talk about Wonderful and a few others.

Wonderful is interesting because it’s focused on charitable donations. It’s designed to maximize the amount of money that actually gets to the charity by covering transaction fees. This can be a huge selling point for organizations that rely on donations.

But beyond Wonderful, there’s a whole ecosystem of smaller or more specialized payment systems. These might focus on specific industries, offer unique features, or cater to businesses with very particular needs. It really depends on what you’re looking for.

• Consider your specific industry. Some payment systems are tailored for retail, others for services, and still others for digital products.
• Think about your transaction volume. Some systems are better suited for high-volume businesses, while others are more cost-effective for smaller operations.
• Don’t forget about international payments. If you’re doing business globally, you’ll need a system that can handle multiple currencies and payment methods.

Choosing the right payment system isn’t just about the fees. It’s about finding a solution that integrates well with your existing systems, provides a good user experience for your customers, and helps you manage your finances effectively. It’s worth taking the time to do your research and find the best fit for your business.

For example, if you’re a UK merchant, you might want to compare Worldpay alternatives to see if there’s a better fit for your business needs.

Wrapping It Up

Choosing the right payment system for your small business in the UK is a big deal. It can really affect how smoothly your operations run and how happy your customers are. With so many options out there, it’s important to think about what fits your needs best. Look for systems that are easy to use, secure, and offer good customer support. Don’t forget to check the fees, too, since they can add up quickly. Take your time to explore different platforms, and maybe even try a few out before settling on one. In the end, the right choice can help your business grow and keep your cash flow healthy.

Frequently Asked Questions

What are payment systems?

Payment systems are tools that allow businesses to accept money from customers. They can be used for online sales, in-person transactions, or both.

What are the best payment systems for small businesses in the UK?

Some of the top payment systems for small businesses in the UK include PayPal, Stripe, Shopify, GoCardless, Worldpay, Revolut, Adyen, Square, and Airwallex.

How can small businesses accept payments?

Small businesses can accept payments through various methods like credit cards, debit cards, mobile payments, and online payment platforms.

What is a mobile POS?

A mobile POS (Point of Sale) is a system that allows businesses to process payments using a mobile device, making it easy to sell anywhere.

Which payment system is best for startups?

The best payment system for startups often depends on their specific needs, but options like PayPal and Stripe are popular for their ease of use and flexibility.

How do I choose the right payment system for my business?

To choose the right payment system, consider factors like transaction fees, ease of integration, security features, and the types of payments you want to accept.