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5 Best Online Payment Gateway For Small Business In The UK

Sep 10, 2021
By Tarun

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Estimated reading time: 13 minutes, 21 seconds

With hundreds of payment gateways available in the market, it can get very difficult to select the right one for your business. If that’s your problem, then fret not! Keep calm, and check out our guide to the best online payment gateway for small business in the UK..!

Do You Really Need A Payment Gateway?

The short answer is, Yes!

E-commerce businesses are all about providing a swift and laid back shopping experience to the customers. However, sometimes after putting their favourite items in the cart, when your customers move to the checkout page and don’t find their preferred payment options, they are forced to abandon their cart and leave the site without making any purchase. The result — increased shopping cart abandonment.

In 2020, the average shopping cart abandonment rate was recorded to be 88%, and one of the factors contributing to it was the lack of enough payment options. The best way to solve this problem is using a payment gateway. A payment gateway not only helps users to make instant payments using their favourite method, but also allows merchants to run their business smoothly. To help you make the right
selection, we have come up with a list of 5 best online payment gateway for small business in the UK. Keep reading!

Comparison of Top 5 Online Payment Gateways

Before moving further, let’s take a look at the following comparison chart of 5 best online payment gateway for small business in the UK.

Payment Gateway	Main Highlights	Transaction Fee	Monthly Fee
Stripe	Full-Service Payment Gateway	2.9% + £0.20	Nil
Worldpay	Reliability & Customer Experience	2.75% +£0.20p	Starts From £19 per month
PayPal For Business	Fast Transfers	2.9%+ £0.30	Nil
Opayo	Excellent Security	NA	£25 for up to 300 transactions per month
Amazon Pay	Easy to Use	2.7% + £0.30	Nil

5 Best Online Payment Gateway For Small Business in the UK

Selecting a reliable payment gateway is one of the most important steps for starting an online business in the UK. It not only allows you to collect and process payments in a frictionless way, but also help you improve your customers’ shopping experience. Having said that, here is a list of the best online payment gateway for small business in the UK:

1. Stripe

Stripe is perhaps the most popular payment gateway provider in the UK. But unlike the other payment gateway providers in the country, it offers its payment gateway services with a good range of APIs that you can use to integrate the payment gateway to your website. This offers you the flexibility and complete control over the appearance and functioning of your payment pages. In short, it helps you to create and deploy an amazing shopping experience to your customers and reduce the cart abandonment rate.

Not just that, you can also integrate Stripe into your existing ERP system. The main highlight of the Stripe payment gateway is, it can be easily integrated into an array of third-party infrastructure, such as invoicing systems, shopping carts, email systems, analytics tools, fundraising programs, cards as well as mobile systems, multiple marketplaces, and more. Further, Stripe is PCI compliant and accepts almost all major debit and credit cards. It accepts around 100 top currencies.

Coming to the downsides, the only complaints with Stripe are related to unresponsive customer care service and issues with withheld funds.

Main Features of Stripe Payment Gateway

Accept payments from all the major credit and debit cards
Accepts more than 135 currencies
Offers customisable checkout experience
Offers wallet payment support
Support local payments
Allow you to build your own checkout pages using Stripe.js
In-depth financial reports
Excellent security features
Integrates well with a wide range of third-party platforms

Fee Structure

Transaction Fees : 1.4% + 20p for European Cards, 2.9% +20p for non-European cards.
Monthly Fees: None
Initial Set Up Fees: None
Chargeback Fees: £14
Contract: None
Cancellation Fee: None

Stripe Review: Pros & Cons

Pros	Cons
Zero monthly fee	Complaints about customer care support
Affordable transaction rates	Requires programming skills for creating
Customisable payment gateway	Complaints of account freezes
Multiple integration options
No setup fee

Our Verdict

Is Stripe the best online payment gateway for small business in the UK? Well, yes. It is one of the best payment gateways for small businesses. First, it is very affordable. The transaction rates are reasonable, plus there is no setup fee, or contract. The only problem is, you need to have good programming knowledge to make the most out of this payment gateway. But again, this can be easily resolved by hiring a website developer.

2. Worldpay

Worldpay is the next contender in the race of the best online payment gateway for small business in the UK..!

When talking about the most popular payment gateways in the UK, Worldpay surely tops the list. In fact, around 50% of the total payments in the UK are handled by Worldpay. The reason why it is suitable for small to medium online stores is, it offers a very flexible pricing structure and has exceptional security features.

However, the only problem while dealing with a large payment gateway service provider like Worldpay is, their customer service is not that responsive. This can be a problem if you have account issues.

Main Features of Worldpay Payment Gateway

Accept all the major credit and debit cards
Accepts over hundred top currencies
Comes with a digital merchant account that acts like a checking account.
Comes with excellent fraud detection tools
Allows you to send payment links to your customers so that they don’t have to visit your website in order to make payments.

Fee Structure

Transaction Fees : 1.4% + 20p for European Cards, 2.9% +20p for non-European cards.
Monthly Fees: None
Initial Set Up Fees: None
Chargeback Fees: £14
Contract: None
Cancellation Fee: None

Worldpay Review : Pros & Cons

Pros	Cons
Excellent security features	Fixed monthly fee
Accepts 100+ currencies	Variable transaction fee
Accepts all the major cards
Pay by link facility
No setup fee

Our Verdict

If you’re someone looking for a highly secure best online payment gateway, then Worldpay can be a great pick for you. The good thing is, it doesn’t come with a joining fee. Further, it has the ability to integrate with a number of invoicing software as well as Ecommerce site builders. With a great brand reputation and excellent security features, Worldpay is definitely worth investing in.

However, keep in mind that it is not an end-to-end ecommerce solution. Therefore, you’ll need to work with a third-party ecommerce platform. Also, the customer service can be a hit or miss. If you can bear that, then you can consider going with Worldpay.

Also Read: 7 Best eCommerce Platforms For Small Business In The UK

3. PayPal for Business

PayPal offers one of the easiest payment gateways to integrate with any ecommerce website. It has a great reputation and a significant user base from all across the globe.

PayPal is great for small businesses with a relatively low volume of online transactions. This is mainly because the transaction rates at the bottom are generally steep.

On the downside, the transaction rates can escalate really fast for the higher volume of transactions. Also, the off-site checkout can be problematic. Many PayPal business account users complain about their account getting suspended without any notification.

Features of PayPal Business Payment Gateway

Recurring Payments
Direct Payment
Advanced security features
Express Checkout
Customised checkout experience

Fee Structure

Transaction Fees : 1.9% to 3.4% + 20p
Monthly Fees: £20/ month
Initial Set Up Fees: None
Chargeback Fees: £14
Contract: None
Cancellation Fee: None

PayPal Review : Pros & Cons

Pros	Cons
Easy to set up	Complaints about accounts shutting down without any justification
Trusted and reputed	Customisation is available only on expensive versions
No cancellation fee	Shopping cart functionality not available
Accept payments in hundreds of currencies
Multiple cards accepted

Our Verdict

Is Paypal the best online payment gateway for small business in the UK?

The answer is yes, it can be a great choice for a small business provided that you’re certain that the size of your business is not going to increase anytime soon. PayPal is a reliable payment gateway that is easy to set up and use. However, the transaction rates get higher with the payment volume. So, keep this thing in mind before making your final decision.

4. Opayo

Opayo is a well-known payment gateway provider in the UK. It is great for small businesses with lower transaction volume and limited target markets. With Opayo, you can collect payments in 25+ top currencies from different parts of the world. The best part about this online payment gateway is, it offers full as well as partial customisation options with its hosted and self-hosted plans respectively. Further, it can integrate with top ecommerce platforms like BigCommerce, Shopify, and WooCommerce.

Main Features of Opayo Payment Gateway

Accept payment in over 25 currencies
Ability to handle phone payments and eInvoices
Great reporting and analytics features
Advanced fraud prevention and security features
24×7 Reliable customer support

Fee Structure

Opayo offers a customised pricing structure for a monthly transaction volume of more than 3000. Further, the pricing starts from £25/m for 350 transactions per month, and £45 for 500 monthly token purchases.
Set Up: £0

Opayo Review: Pros & Cons

Pros	Cons
Transparent pricing plans	Has contract
Easy to Use	High cancellation fee
Customisation available

5. Amazon Pay

While Amazon Pay is relatively new in the game of payment gateways, it has got a massive reputation. This is the reason why it is eligible for being one of the best online payment gateway for small business in the UK.

It is easy to set up, easy to use and doesn’t come with setup or any monthly charge if you use it with WooCommerce. Further, the transaction fee is also quite reasonable and if you’re running a small WooCommerce store, then Amazon Pay is definitely worth considering.

Another good thing about Amazon pay is, you don’t need to pay separately for a hosted payment page because the customers don’t have to leave your site to make payments.

Main Features of Amazon Pay

Offers a full range of Ecommerce tools
Allows you to process transactions on your website itself
Unmatchable fraud detection technology
Recurring payment options
Can be customised using free plugins

Fee Structure

Transaction Fees : 2.7% + 30p per transaction
Monthly Fees: None
Initial Set Up Fees: None
Chargeback Fees: £14
Contract: None
Cancellation Fee: None

Amazon Pay Review: Pros & Cons

Pros	Cons
Feature-rich payment gateway	Transaction rates increase with the volume
No contracts	Funds can be held for longer periods
No cancellation fee

Our Verdict

Amazon pay doesn’t come with any hidden charges, monthly fees or initial set up fee. Further, its transaction rates are also reasonable for a low volume of transactions. If you’re looking for a highly secure and easy to set up payment gateway that offers plenty of ecommerce tools and customisation options, then there is nothing better than Amazon Pay.

There you have it!!

You’ve just passed through the list of best online payment gateway for small business in the UK. But if you’re still confused as to which payment gateway service to choose, then don’t worry. We have compiled a quick guide that will help you select the right payment gateway for your business. So, check it out and thank us later!

Things To Consider When Selecting The Right Payment Gateway

Below is a list of things you should look for at the time of selecting the best online payment gateway for your business :

1. Hosted or Integrated Payment Gateway – Which One To Choose?

The very first question that hits your mind while selecting a payment gateway is, whether to choose a hosted or integrate gateway? Here is the difference between both:

A hosted payment gateway redirects your customers to the platform of the payment processor. These types of payment gateways are great for new business as they are easy to set up.

On the other hand, an integrated payment gateway joins itself with your website using its APIs. This means, your customers don’t have to leave the site to make payments. They can do so right at your checkout pages. Integrated payment gateways usually require the technical expertise of a web developer, but they are more secure and ideal for all types of businesses.

2. Security

Another important factor you should look into is the security offered by the payment gateway. Although online transactions are easy and convenient, they are still exposed to security breaches. Hence, always choose a payment gateway that offers tight security features like PCI-DSS compliance, fraud detection, SSL certification, data encryption, etc.

3 .Data Portability

What happens to your customer’s data when you choose to switch the gateway? Learn how to download and shift data to other platforms in order to keep your merchant operations running without compromising with the GDPR policy.

4. Customer Experience

The main goal of using a payment gateway is to provide your customers with a hassle-free and quick shopping experience. However, if your payment gateway is too complicated and requires your customers to follow too many steps and fill in a lot of details, then it will ruin their purchase experience. What’s worse? It may increase your cart abandonment rate.

So, choose a payment gateway that is simple to use and offers a great customer experience.

5. Accepted Payment Methods

Make sure that the payment gateway you’ve selected accepts all the major credit and debit cards. Not just the cards, it should also accept payments via other methods such as e-wallets, e-cheques, etc.

6. Mobile Optimisation

It’s no secret that mobile phones are the future of e-commerce. So, if your payment gateway is not optimised for smartphones, then it is not the right one for your business. Using such a payment gateway will take away many great opportunities from you. So, make sure to choose a mobile optimised payment gateway.

7. Transaction Fees

Different payment gateway comes with different transaction fees. Make sure to check out all the different charges and don’t go over your budget. Also, don’t fall for “Free” payment gateways, there is no such thing. These so-called Free services come with many hidden charges and poor service quality. Other than transaction fees, you also have to consider the overall expenses of the payment gateway. There are certain payment gateways that have their monthly charges, maintenance charges and integration charges. This can add up in the cost of your online business. Learn more about how much does a website cost in the UK?

8. Customer Support

Finally, if your payment gateway ever goes down and you can’t accept payments, then you should have someone to assist you. That said, have an ecommerce payment gateway that offers reliable customer support. A good idea is to go through a handful of customer reviews before making any final decision.

Conclusion

So, What is the best online payment gateway for small business in the UK?

After sifting through a pool of payment gateways, we have selected the top five for your small business. All of the payment gateways we’ve mentioned above are reliable, secure and come with excellent features. Further, the transaction fee is also quite affordable. You can select any one depending on your budget and requirements. While some payment gateways are easy to integrate, some may require the expertise of a web developer. If the latter is the case, then RVS Media has got your back. Our web developers will help you integrate the right ecommerce payment gateway to your site in the smoothest way possible. So, whenever you’re ready, feel free to contact us!