In the fast-evolving world of digital commerce, choosing the right best payment processor for UK is essential for businesses of all sizes. Whether you’re a high-street retailer, an online startup, or a freelance service provider, your payment system must be secure, flexible, and cost-effective.
This guide explores the best payment processors for UK in 2024, comparing features, fees, and compatibility to help you pick the right fit for your business.
What is a Payment Processor?
A payment processor is a company that handles credit card, debit card, and digital wallet transactions between your customer, your business, and the banks involved. It authorizes, captures, and settles payments, ensuring funds are safely transferred.
Key services offered by payment processors include:
- Point-of-sale (POS) systems
- Online payment gateways
- Recurring billing and invoicing
- Fraud detection and PCI compliance
- Multi-currency and international support
Key Factors to Consider
When comparing payment processors, consider the following:
| Factor | Why It Matters |
| Transaction Fees | Impacts your profit margins |
| Monthly Costs | Some charge monthly fees; others are pay-as-you-go |
| Setup Time | Time required to go live |
| Payment Methods | Credit/debit cards, Apple Pay, Google Pay, PayPal, etc. |
| Integration | Can it connect to your website, till, or app? |
| Customer Support | Essential if payments fail or systems go down |
Top Payment Processors in the UK (2024)
🏆 1. Stripe – Best for Online Businesses
Pricing: 1.5% + 20p for UK cards, 2.5% + 20p for international
Monthly Fee: £0
Best For: E-commerce, SaaS, and platforms
Why Choose Stripe?
Stripe offers one of the most powerful APIs in the industry. It’s highly customizable and ideal for online businesses that want to automate billing, accept subscriptions, or integrate seamlessly with websites and apps.
Key Features:
- Accepts 135+ currencies
- Developer-friendly API
- Fraud protection with Radar
- Integrated checkout and invoices
- Instant payouts (with additional fee)
Cons:
- Requires technical setup
- Not ideal for small brick-and-mortar shops
🥈 2. Square – Best for Retail and Pop-Up Shops
Pricing: 1.75% per card-present transaction
Monthly Fee: £0 (hardware extra)
Best For: Cafés, pop-ups, tradespeople, small retail
Why Choose Square?
Square offers a full suite of POS solutions that are ideal for in-person sales. You get a free app and can purchase hardware like card readers and terminals at competitive prices.
Key Features:
- Simple, flat pricing
- Free POS app
- Card reader from £19 + VAT
- Online store builder included
- Invoicing and appointment scheduling
Cons:
- Less customizable than Stripe
- Charges 2.5% for online and manually entered payments
🥉 3. PayPal – Best for International and Trusted Payments
Pricing: 2.9% + 30p for online payments (discounts for volume)
Monthly Fee: £0
Best For: Freelancers, small online businesses, donations
Why Choose PayPal?
A globally recognized brand, PayPal offers instant credibility and trust to buyers. It’s ideal for those who sell internationally or on platforms like eBay, Etsy, or Shopify.
Key Features:
- PayPal Pay Later and Credit options
- Instant transfers to bank (for a small fee)
- Integration with most e-commerce platforms
- Invoicing and recurring billing
- Buyer/seller protection policies
Cons:
- Higher fees than competitors
- Account freezes are a common complaint
💳 4. SumUp – Best for Simplicity and Mobile Use
Pricing: 1.69% per transaction
Monthly Fee: £0
Best For: Microbusinesses, mobile professionals
Why Choose SumUp?
SumUp is affordable, easy to use, and works with a wide range of small businesses like hairdressers, market traders, and mobile services.
Key Features:
- No contracts or hidden fees
- Mobile card reader (SumUp Air) for £29 + VAT
- Accepts major cards and Apple/Google Pay
- Invoice and link-based payments
- Fast payouts to bank accounts
Cons:
- Limited customisation
- Basic reporting features
💼 5. Worldpay – Best for Larger or Established Businesses
Pricing: Custom (typically 2.75% + 20p) or tailored plans
Monthly Fee: From £19.95/month (varies by plan)
Best For: Medium to large businesses with high volume
Why Choose Worldpay?
As one of the UK’s most established payment providers, Worldpay supports businesses with complex needs, including multichannel retail, hospitality, and B2B.
Key Features:
- Wide range of hardware and integrations
- Omnichannel support (online, phone, in-store)
- 24/7 support
- Currency conversion and global processing
Cons:
- Setup fees and long-term contracts
- Complex pricing structure
🌐 6. Zettle by PayPal – Best for Growing Retailers
Pricing: 1.75% per transaction
Monthly Fee: £0
Best For: SMEs wanting flexibility and PayPal integration
Why Choose Zettle?
Zettle (formerly iZettle) is now owned by PayPal and offers one of the best mobile POS systems on the market. Perfect for growing small retailers and food outlets.
Key Features:
- Intuitive mobile app
- Invoicing, gift cards, and reporting
- Full integration with PayPal and Xero
- Card reader for £29 + VAT
Cons:
- Not ideal for high-volume online-only businesses
Comparison Table: UK Payment Processors
| Provider | Transaction Fee (UK) | Monthly Fee | Best For | Card Reader Cost |
| Stripe | 1.5% + 20p | £0 | Online businesses | No reader needed |
| Square | 1.75% | £0 | Retail / POS | From £19 + VAT |
| PayPal | 2.9% + 30p | £0 | International, eBay | Optional |
| SumUp | 1.69% | £0 | Mobile services | £29 + VAT |
| Worldpay | Varies (custom) | From £19.95 | High-volume merchants | £39+ |
| Zettle | 1.75% | £0 | Shops + PayPal users | £29 + VAT |
What’s the Best for You?
- Freelancers or Side Hustles: PayPal or SumUp
- Online-Only Businesses: Stripe or PayPal
- Brick-and-Mortar Retail: Square or Zettle
- High Turnover Businesses: Worldpay or Stripe with custom rates
- Market Traders/Mobile Services: SumUp or Square
Final Tips Before You Choose
- Read the fine print – Especially around refund charges, chargebacks, and hardware costs.
- Watch out for contracts – Some providers lock you into 12–36 month terms.
- Ask about integrations – Check compatibility with your accounting software or website.
- Test the interface – A clunky dashboard can cost you time and frustration.
Conclusion
Choosing the right payment processor in the UK can mean the difference between a smooth customer experience and a business headache. Whether you prioritise low fees, fast payouts, or seamless integrations, there’s a payment solution tailored for your needs.
Start with a clear understanding of your transaction volume, selling platform (in-person or online), and technical needs — and you’ll find the processor that gives your business a boost in 2024 and beyond.
