Best Payment Gateways UK [2026 Compared]

A payment gateway connects your website to card networks, securely processing each transaction so customers can pay online. The best payment gateway for most UK businesses in 2026 is Stripe – it charges 1.5% + 20p per UK card transaction with no monthly fees and integrates with over 250 platforms including WooCommerce, Shopify, and Magento. For businesses without developer resources, PayPal Checkout offers the lowest card rate at 1.2% + 30p with no coding required. Square Online suits omnichannel retailers who sell both online and in-person, while Adyen handles high-volume merchants with Interchange++ pricing that drops as you scale.

We compared 7 FCA-regulated payment gateways on transaction fees, monthly costs, integration options, settlement speed, and PCI compliance. All pricing was verified directly from provider websites in February 2026. Whether you’re launching your first online shop or processing thousands of transactions per month, this guide breaks down exactly what you’ll pay and which gateway fits your business model.

Best Payment Gateways UK – Compared

Stripe (1.5% + 20p), PayPal Checkout (1.2% + 30p), and Adyen (interchange++ + £0.13) are the top UK payment gateways, all with zero monthly fees.

The best payment gateway for most UK businesses in 2026 is Stripe, offering 1.5% + 20p per UK card transaction with no monthly fees, 250+ integrations, and the most developer-friendly API on the market. For non-technical businesses, PayPal Checkout offers lower card rates (1.2% + 30p) with no coding required.

No-Contract Payment Gateways

No-contract gateways include Stripe (1.5% + 20p UK cards), PayPal (1.2% + 30p Apple Pay), Square Online (1.4% + 25p), and Shopify Payments (1.5% + 25p).

Most modern payment gateways operate on a pay-as-you-go basis with no contracts, no monthly fees, and no minimum transaction volumes. Here are the 5 best no-contract options for UK businesses.

Stripe is the most widely used payment gateway for UK online businesses, powering checkouts for companies from sole traders to enterprises. Its developer-first approach means unmatched customisation, but ready-made plugins for WordPress, WooCommerce, Shopify, and 250+ platforms mean non-developers can use it too.

• UK card rate: 1.5% + 20p per transaction
• EU cards: 2.5% + 20p | International cards: 3.25% + 20p
• Monthly fee: £0 – pay per transaction only
• Tap to Pay (in-person): 1.5% + 10p via Stripe Terminal
• Settlement: ~7 days rolling (customisable for established accounts)
• Built-in fraud protection: Stripe Radar (from 0.05% per transaction)
• Recurring billing: Stripe Billing add-on (0.7% per invoice)

Best for: Online businesses, SaaS companies, subscription services, and any business with developer resources. Not ideal if you need instant settlement or primarily sell in person. Read our full Stripe review.

PayPal’s online checkout (separate from PayPal POS for in-person payments) offers the lowest card processing rate of any no-contract gateway at 1.2% + 30p for UK cards and Apple Pay. The PayPal wallet option is more expensive (2.9% + 30p), but adding it at checkout can increase conversion by giving customers a trusted one-click option.

• UK card rate (cards & Apple Pay): 1.2% + 30p
• PayPal wallet: 2.9% + 30p
• Manual/keyed entry: 3.4% + 20p
• Monthly fee: £0
• Settlement: Instant (into PayPal account), then transfer to bank
• Chargeback fee: £14

Best for: Small businesses selling online without developer resources, marketplace sellers, and any business where PayPal brand trust boosts conversion. Read our PayPal review.

Square’s online payment gateway integrates seamlessly with its in-person POS system, making it the best choice for businesses that sell across both channels. Online rates are competitive at 1.4% + 25p for UK cards, and all sales – online and in-person – sync into one dashboard with next-day settlement.

• UK card rate (online): 1.4% + 25p
• International cards: 2.5% + 25p
• Invoices: 2.5%
• Monthly fee: £0 (Free plan) or from £29/month (Plus)
• Settlement: Next day (free) or instant (1.5% fee)
• Includes free online store builder

Best for: Retail businesses, restaurants, and service providers selling both online and in person who want everything in one system. Read our full Square review.

If you run a Shopify store, Shopify Payments is the default and usually cheapest option – using a third-party gateway on Shopify incurs an extra 0.5–2% fee on top of the gateway’s own charges. Shopify Payments is powered by Stripe’s infrastructure but with Shopify-specific integration.

• UK card rate: 1.5% + 25p (Basic), 1.4% + 25p (Shopify), 1.3% + 25p (Advanced)
• International cards: add 1.5% on top
• Monthly fee: included in Shopify plan (from £25/month Basic)
• No extra gateway fee (third-party gateways charged 0.5–2% extra)
• Settlement: 3 business days

Best for: Any business already on Shopify. Using a third-party gateway on Shopify costs more due to the additional transaction fee. Read our Shopify Payments review.

Adyen is the only major payment gateway offering true interchange++ pricing in the UK. Instead of a flat percentage, you pay the actual interchange fee (set by Visa/Mastercard) plus Adyen’s markup of approximately 0.60% and a fixed £0.13 per transaction. For high-volume businesses, this typically works out cheaper than any flat-rate gateway.

• Pricing model: Interchange++ (interchange + scheme fee + 0.60% markup + £0.13)
• Estimated effective rate for UK consumer debit: ~0.95–1.15%
• Monthly fee: £0 (minimum invoice threshold may apply)
• Supports 250+ payment methods and 150+ currencies
• Built-in risk management (RevenueProtect)

Best for: Businesses processing high volumes online, international sellers, and companies that want the lowest possible effective rate through interchange++ pricing. Not suitable for small businesses processing under £10,000/month. Read our Adyen review.

Contract-Based Payment Gateways

Worldpay Online offers negotiated rates from 0.75% + 5p for higher-volume merchants, but requires a contract and minimum £17.50/month gateway fee.

Traditional payment gateways from banks and established processors offer lower per-transaction rates through negotiated contracts, but require commitments and often charge monthly fees.

Worldpay is the UK’s largest payment processor and offers an online gateway alongside its in-person terminals. Rates start from 0.75% + 5p for high-volume businesses, making it significantly cheaper than flat-rate gateways – but pricing is entirely quote-based.

• UK card rate: from 0.75% + 5p (negotiated)
• Monthly fee: from £17.50
• Contract: required (length varies by plan)
• Supports online, in-person, and phone payments

Best for: Established businesses processing high volumes across online and in-store channels. Not recommended for startups or low-volume sellers. Read our Worldpay review.

Braintree (owned by PayPal) combines card processing, PayPal wallet, Apple Pay, Google Pay, and Venmo into a single gateway with one integration. It’s developer-friendly like Stripe but with native PayPal integration – useful if a significant portion of your customers prefer PayPal.

• UK card rate: 1.9% + 20p
• International cards: 2.9% + 20p
• PayPal via Braintree: 2.9% + 30p
• Monthly fee: £0
• Settlement: ~7 days

Best for: Businesses that need PayPal and card processing under one roof without managing separate integrations. If you don’t need PayPal integration, Stripe offers better card rates. Read our Braintree review.

Related reading: Not sure if you need a gateway or a full merchant account? Read our merchant account vs payment gateway explainer. For phone and mail-order payments, see our virtual terminal guide.

Best Payment Gateway for International Payments

If your customers are spread across multiple countries, the gateway you choose matters more than for a UK-only business. Cross-border card fees, settlement currencies, local payment methods (iDEAL in the Netherlands, Sofort in Germany, Boleto in Brazil), and checkout language coverage all affect both conversion and margin. Three gateways stand out for international sellers: Adyen for enterprise-scale multi-region operations, Stripe for the broadest currency and developer support, and PayPal for buyer-side recognition in markets where card trust is lower.

Adyen: Best for Enterprise Multi-Region Operations

Adyen was built around the problem of accepting payments in dozens of countries through one integration. It supports 100+ local payment methods – iDEAL, Sofort, Klarna, Alipay, WeChat Pay, Boleto, GrabPay, and many more region-specific options. It also allows settlement in 30+ currencies. That removes the need to maintain separate gateways per region.

The catch is the same as elsewhere in this guide. Adyen targets businesses processing £10,000+/month, and the contract complexity reflects that. Smaller international sellers will find the integration overhead disproportionate to the benefit. Read our Adyen review for UK pricing.

Stripe: Best for Cross-Border Card Volume

Stripe accepts payments in 135+ currencies and is directly available to merchants in 50+ countries. Its developer documentation is the broadest of any gateway in this comparison. For UK businesses selling internationally, Stripe’s 3.25% + 20p international card rate sits between Adyen (negotiated) and PayPal (around 4.4% + 20p, country-dependent).

Stripe’s strength is card-based international coverage. It’s weaker than Adyen on local non-card payment methods (Stripe supports 40+ vs Adyen’s 100+), but stronger than every other UK-popular gateway on global card acceptance. Read our full Stripe review for UK pricing detail.

PayPal: Best for Buyer Trust in Card-Sceptic Markets

PayPal supports 130 transaction currencies across 200+ markets with 400 million active consumer accounts. It’s rarely the cheapest gateway. But in markets where card adoption is lower – parts of Asia, Latin America, the Middle East – PayPal’s brand recognition can lift checkout conversion by 10-25% over a card-only flow.

Many international sellers run PayPal alongside a card gateway specifically for this reason. PayPal handles cart abandonment recovery; Stripe or Worldpay handles direct card payments. The weakness is PayPal’s lack of true local payment method depth – no iDEAL or Sofort native support without Braintree.

Cross-Border Card Fees Compared

Every gateway charges more for cards issued outside the EEA. The premium typically adds 0.5-1.5 percentage points on the standard rate.

Stripe charges 3.25% + 20p for non-EEA cards versus 1.5% + 20p domestic. PayPal adds a country-specific surcharge of 0.4-2.0%. Worldpay and Adyen negotiate cross-border rates per merchant – both publish base international rates around 2.9% + 20p, but volume customers see better. For businesses with material non-EEA volume, the negotiated route through Adyen or Worldpay typically beats Stripe’s published rate above £100,000/month.

Settlement Currency: A Hidden Cost

Where your gateway settles your funds matters as much as the headline rate. If you accept EUR or USD but settle in GBP, you pay an FX conversion margin of 1-2.5% on every cross-border transaction. That effectively doubles your processing cost on those payments.

Adyen, Stripe, and Worldpay all support multi-currency settlement to avoid this. PayPal’s standard FX rate adds 4% above the wholesale exchange rate, which makes it materially more expensive than the headline transaction fee suggests. If you bank in multiple currencies (a Wise Business or Revolut Business account, say), choose a gateway that settles in matching currencies. The annual saving usually covers the integration cost of a more capable platform.

Note on 2D Secure: a small number of UK merchants ask about “2D” payment gateways – this typically refers to gateways that don’t enforce 3D Secure authentication. UK and EU regulations under PSD2 / SCA require strong customer authentication for most card-not-present transactions, so all gateways in this guide enforce 3D Secure 2 by default with limited exemptions. Genuine “2D-only” processing is no longer compliant for UK consumer card transactions.

How to Choose a Payment Gateway

Under £50K/month: flat-rate gateways like Stripe or PayPal. Over £50K: Adyen interchange++. Over £100K: negotiate bespoke Worldpay rates.

The right payment gateway depends on how you sell, what platform you use, and how much you process. Here are the key factors.

Your platform. If you’re on Shopify, use Shopify Payments – any other gateway costs you an extra 0.5–2% per transaction. For WooCommerce, WordPress, or custom sites, Stripe or PayPal Checkout are the strongest options.

Transaction volume. Flat-rate gateways (Stripe, PayPal, Square) are simplest for businesses processing under £50,000/month. Above that, Adyen’s interchange++ pricing typically saves money. Above £100,000/month, negotiate with Worldpay for the lowest possible rates.

Settlement speed. If cash flow matters, Square offers next-day settlement and PayPal provides instant access to funds. Stripe’s standard 7-day rolling payout is slower but can be shortened for established accounts.

International sales. All gateways charge more for international cards (typically 2.5–3.5%). If you sell globally, Adyen offers the broadest currency and payment method support. Stripe supports 135+ currencies. PayPal’s brand recognition helps conversion in markets where card trust is lower.

Developer needs. Stripe leads for API quality and documentation. Braintree and Adyen also offer strong developer tools. PayPal Checkout and Square are better for non-technical teams with plug-and-play integrations.

Payment Gateway vs Merchant Account: What’s the Difference?

Payment facilitators like Stripe and Square bundle gateway and merchant account with instant setup, while traditional gateways require separate underwriting and longer onboarding.

A payment gateway is the software that securely transmits card details from your website to the payment processor. A merchant account is where the funds land before reaching your bank account. Modern payment facilitators like Stripe, Square, and PayPal bundle both together – you don’t need a separate merchant account.

Traditional gateways like Worldpay require a separate merchant account, which means underwriting, credit checks, and longer setup times – but potentially lower rates for high-volume businesses.

For most small and medium businesses, a combined gateway + payment facilitator (Stripe, PayPal, or Square) is the simplest and most cost-effective option. See our guide to the best merchant accounts for small business for a broader comparison including in-person providers.

Last updated: February 2026. All rates verified directly from provider websites. Rates may vary based on your business type, volume, and card mix. See our individual Stripe, PayPal, Square, Shopify Payments, Merchant Account Fee Calculator to get a personalised cost estimate based on your specific requirements.[/es_callout] >Adyen, Worldpay, and Braintree reviews for full details.

Emma Clarke

Technology & Payments Specialist

Emma covers the full range of business technology, including EPOS systems, merchant accounts, telecoms, and web tools. Her experience as a retail systems consultant helps businesses choose the right digital solutions to improve efficiency and sales.

Reviewed by

Sarah Mitchell

B2B Commerce & Finance Reviewer