Top 5 UK Payment Gateways to Choose 2022 (2024)

In the era of Industry 4.0, the world has witnessed the extremely significant development of the Internet. The increasing popularity of the Internet has prompted businesses to go online as well. E-commerce associated with online payment systems is growing at a rapid pace in today’s marketplace. Therefore, payment gateways have become increasingly important.

This article will focus on online payment systems: the top 5 UK payment gateways in 2022. Hope you can choose the best option based on your business type, your requirements, and your budget.

What Is Payment Gateway

A payment gateway is a mechanism that works as a middle man between the clients and merchants, ensuring that transactions are carried out securely and quickly. It captures customer payment data including credit & debit card details on your site.

The payment gateway encrypts their information (using SSL - Secure Sockets Layer) and collaborates with your bank to assess whether the transaction is legit or not. If it is, the funds will be sent to your bank account within a short period of time. Otherwise, the payment will be declined and you will avoid incurring chargeback costs. It’s is one of the most important things that you need to consider before choosing a dropshipping tool to start an online business.

Types of Payment Gateways

Here we have two main types of payment gateways: onsite and offsite.

Onsite Gateways

Onsite payment gateways allow you to collect credit and debit card information of your customers right on your website. Your clients are not redirected to the payment gateway provider’s website to make payments.

• Pros: The checkout process goes smoothly and customers are more likely to complete it.
• Cons: This type necessitates a few extras (such as an SSL Certificate), and the fees are often higher.

Offsite Gateways

Offsite gateways send the clients from your site to a 3rd-party website (payment gateway provider’s website) to complete the payment.

• Pros: This method costs less, is easier and faster to set up, suitable for start-ups.
• Cons: This can reduce or event lose customers’ trust in your brand. A more complicated checkout process (due to the 3rd-party involvement) can make more clients abandon it.

What Makes a Good Online Payment System

A good online payment system can bring your E-commerce businesses two major benefits including making the checkout process simple and fast and providing encryption to keep your client data secure. Below are 7 characteristics that a good online payment system must have to conquer the market.

Security: PCI DSS Compliance Level

Confidentiality of customer data is an important task in online business. If you do not maintain your customer information safe, you will face incredible severe fines, which might ruin your business. Make sure you check the payment gateway provider's PCI compliance level before picking one.

You do not need to have deep knowledge in the newest encryption technology but you do need to be aware of how your company manages and handles client information. To be on the safe side, only consider merchants that provide PCI DSS Level 1 compliance.

Good Integration Ability

This is an essential ability that an online payment system needs to have. A payment gateway is, at its core, an application software. So it must be compatible with the other tools used to administer your website.

You, for instance, have a content management system (such as Drupal, WordPress, Magento, or Joomla), a shopping basket, and a payment gateway; remember that all of them need to integrate with each other. So make certain that the solution you’re thinking about will work well with the other systems you use.

Strong Fraud Detection Ability

No merchant wants to sell goods just to have the payment disputed or charged back. Nonetheless, you have to ensure that you do not turn legitimate clients away.

That is why the finest payment gateway providers collaborate with their merchants to determine the appropriate degree of fraud detection so that they may sell to all of their consumers without wasting money.

Number of Payment Options

At the very least, you should be able to process both debit and credit card transactions. Some more modern payment gateways, however, allow you to receive vouchers, PayPal, and a variety of other payment options.

Accepted Currencies

If you want to boost your revenue and take full advantage of E-commerce, you need to deliver beyond your borders. And if you ship internationally, you definitely need a payment gateway that accepts multiple foreign currencies. Nevertheless, you also should keep in mind that international transactions may cost you a little more to complete.

Real-Time Reporting

Using real-time reporting as part of offerings can provide you with ongoing updates on how your company is doing. It will also assist you in identifying and eliminating problems simply and quickly.

5 best UK Payment Gateways to Choose

There is a wide range of online payment systems in the UK that offer simple, quick, and secure transactions. We’re gonna review the key features, pros & cons, and costs of the top 5 UK payment gateways to choose in 2022. So, it will be much easier for you to make an appropriate choice for your E-commerce business.

Read more: Europe Online Payment: Which is the Best Option for Dropshippers?

PayPal

According to a survey conducted by Attest (2019), PayPal was the most popular online payment method in the UK, accounting for 49 percent of all shoppers. It is used by over 20 million UK buyers each year. PayPal is well-known for its quick transfers, user-friendly interface, and comprehensive fraud prevention.

Key features:

• Acceptance of international payments/ credit & debit cards.
• Multi-currency support: PayPal accepts more than 100 currencies worldwide; as a PayPal merchant, you may store your earnings in 57 different currencies.
• Withdrawal Fees: PayPal charges no withdrawal fees.
• Settlement days: On a daily basis, all funds received in your PayPal account will be automatically remitted to your local bank account.
• Customer Service: PayPal has an excellent customer service system.
• Transaction Fees: 1.9%-3.4% + 20p/ transaction
• Monthly Fees: £20/ month (standard)

PROS:

• It is possible to pay directly using your PayPal account
• International payments are accepted
• Recurring payments are supported

CONS:

• Expensive fees for low-volume merchants
• Only the most costly version allows for customization

Amazon Pay

Amazon Pay is a good choice for small businesses, making paying online much easier for everyone. It allows your clients to reuse the payment and contact details already stored in their existing Amazon account.

Key features:

• Identity
• Automatic Payments
• Inline Checkout
• Merchant Website Integration
• Fraud Protection
• Transaction Fees: From 1.4% + ₤0.20 per transaction
• Chargeback Fees: £14
• Monthly Fees: No Fee

PROS:

• Support voice payment thanks to Alexa, Amazon’s virtual assistant integration
• Payments are very easy and secure for both buyers and sellers on Amazon.
• It is available in many countries.
• Transparent pricing, trusted brand

CONS:

• Do not accept PayPal
• It takes 3-5 days settlement time
• High fees for low volumes

WorldPay

WorldPay is the largest payment processing corporation with its headquarter in the United Kingdom, handling more than 40% of all card transactions. WorldPay supports payments in more than 116 currencies and all credit/ debit cards. Furthermore, it is equipped with Pay By Link, which enables customers to make online payments via a link rather than a website. This saves time and lovers the cart abandonment rate.

Key features:

• Secure payments with fraud screening
• Providing flexible pricing plans
• Acceptance of all cards (credit/ debit) as well as PayPal in more than 116 currencies
• Real-time reporting
• Transaction Fees: Varied
• Monthly Fees: Starting at £19.96

PROS:

• Offers virtual terminal
• Suitable for both small and large businesses
• ACH Payment processing
• Recurring Billing

CONS:

• A bit expensive

Stripe

Stripe is a fairly new payment gateway (founded in 2010), yet it has swiftly gained popularity. Stripe, being a full-service payment provider, provides a payment gateway as well as a merchant account. It is a payment option that may be customized and integrated into your website. As a result, users are not redirected to other platforms, which can reduce the cart abandonment rate.

Stripe is one of the most powerful UK payment gateways, accepting over 135 currencies worldwide. It offers a wide range of mobile payments, subscription services, and one-click checkouts.

Key features:

• Financial Reporting
• Open-Source Plugin
• Payment Options
• Embeddable Checkout
• Mobile Customer Interface
• Accounting Integrations
• Multicurrency Payouts
• Custom UI Toolkit
• Transaction Fees: 1.4% plus 20p for European cards, 2.9% +20p for non-European cards.

PROS:

• Simple and transparent pricing
• The payment gateway can be customized easily
• Designed for all business sizes

CONS:

• Requires a bit of technical knowledge
• More suitable for European merchants (lower pricing for European cards)
• Not suitable for the ones having a physical store

SagePay

Established in Newcastle, SagePay is well-known for its superior security and full customisation. It allows payments in around 30 currencies using a fast and secure process.

Key features:

• Fraud detection
• Connect to your e-commerce site
• Sage Accounts connection is seamless.
• Various payment methods
• Leading security in the industry
• Support is available 24 hours/ day, 7 days/ week throughout the UK
• Payment pages are customizable
• Check out with a single click
• Analytics in real-time
• Monthly fees start at £20.90 for 350 transactions/ month; £45 for 500 transactions/ month (additional transactions at 12p each).

PROS:

• Highest level of security
• Recurring billing supported

CONS:

• A requirement of some technical knowledge
• The support calls cost 2p per minute

Final Words

A payment gateway is a must-have mechanism in any business to complete the payment process. We hope that the information you need to know about payment gateways, as well as the top 5 best UK payment gateways that we provide above may help you have the best option for your business.