Best Payment Gateway Providers in UK for E-commerce Website

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With the rise of online shopping, providing payment details on an e-commerce website has become a common phenomenon. Yet, buyers prioritise the safety and security of their personal information, especially with the various payment options available.

For businesses, establishing trust with their customer base is paramount. Implementing secure payment gateways is essential to ensuring safe transactions over the Internet. A reliable payment gateway does more than just facilitate transactions – it instils confidence in customers, leading to increased conversion rates and repeat purchases, benefiting businesses in the long run.

To assist you in selecting the right payment gateway for your business needs, read on to discover everything you need to know about payment gateways. Also, explore some of the best options available for eCommerce websites in the UK.

What is a Payment Gateway?

A payment gateway is an online service that enables businesses and individuals to accept payments from customers through their websites or mobile applications. It provides various payment options, such as debit and credit cards, digital wallets, UPI, and more. Businesses utilising these services are often referred to as merchants. Essentially, a payment gateway serves as an intermediary between a merchant and the financial institution processing the payment.

In simple terms, a payment gateway is a technology used by merchants to facilitate electronic payments. It enables online shoppers to use credit or debit cards to purchase products or services.

Types of Payment Gateways

As a merchant, it's essential to understand three main types of payment gateways: on-site payments, redirects, and off-site payments.

1. On-site Payments: With on-site payments, customers can complete transactions without leaving the retailer's website, as seen on platforms like Amazon and eBay. This creates a seamless checkout experience, ultimately enhancing customer satisfaction.

2. Redirects: Redirects occur when a company presents alternative payment options at the checkout. Customers are then directed to another platform or website to finalise their payment.

3. Off-site Payments: In off-site payments, the front-end checkout process takes place on the merchant's website, but the actual payment is processed through a separate back-end system. This approach allows for a streamlined checkout experience while ensuring secure payment processing.

How do Payment Gateways Work? 

1. Collection

When a customer makes a purchase and enters their payment details, such as credit card information, on your website, they hit the payment button to initiate the transaction.

2. Transmission

The payment gateway securely transmits the encrypted payment information to the payment network, ensuring the confidentiality and integrity of the data during transmission.

3. Verification and Authorization

The payment gateway sends an authorization request to the payment network, seeking approval to process the payment. The payment network verifies details like the billing address and the card security code (CVV) to authenticate the transaction.

4. Completion

After receiving the authorization response from the payment network, the payment gateway communicates the outcome back to the merchant's website or application. This notification indicates whether the transaction was successful or unsuccessful.

This entire process typically takes only a few seconds. However, factors such as errors, chargebacks, fraud claims, and other issues may slow down the payment process and cause delays in transaction completion. Payment gateways may charge a fee for their services, which can be a percentage of the transaction amount or a flat fee.

Top 10 Payment Gateways For eCommerce Websites 

1. Paypal

PayPal is often the top choice for online payments, resonating with customers and merchants alike. While it offers a swift setup for merchants, it's important to note that PayPal may not be the most cost-effective option, especially for businesses with substantial revenues and transaction volumes.

2. Amazon Pay

Amazon Pay stands out as a popular choice for small and medium-sized enterprises seeking a secure e-commerce payment gateway. This API-centric platform offers complimentary plugins for diverse e-commerce platforms, simplifying integration into your website. Notably, Amazon Pay caters to a global audience, supporting multiple countries, currencies, and languages.

Beneficially, Amazon Pay imposes no monthly or termination fees. Instead, it applies a domestic processing fee ranging from 2.9% to 4%, along with a fixed charge of $0.30.

3. Shopify

Shopify is the go-to platform for starting, running, and expanding your online business. With around 800,000 online stores worldwide and offices across the globe, Shopify has facilitated over $63 billion in sales. Shopify makes it easy to launch and manage your online store while also providing tools for customer support and integration with additional channels like Amazon and eBay. A Shopify agency UK, can help you in leveraging Shopify's robust features to help businesses thrive.

4. Worldpay 

Worldpay offers intelligent payment processing solutions tailored for small businesses and merchants. Whether you're a small-scale operation or a high-volume retailer, WorldPay provides strategic partnerships and online payment systems to businesses worldwide. Their standard online payment gateway comes at a monthly subscription fee of 19 euros, which includes 350 transactions. Additionally, there are no extra charges for setup. Simplify your payment process and grow your business with Worldpay!

5. GoCardless 

GoCardless simplifies payment processes by specialising in Direct Debit services, making it easy for businesses to handle recurring payments. It caters to both small ventures and large corporations, offering automation for payment collection and reconciliation.

With GoCardless, users can seamlessly integrate a robust Direct Debit system into their website, mobile app, or desktop software, tailoring it to their specific requirements.

6. Cardstream

Cardstream stands out as the sole provider of a fully independent white-label payment gateway in the UK. This gateway enables you to accept card payments on your website and offers a real-time virtual terminal for phone or mail transactions.

What sets Cardstream apart is its complete independence from acquiring banks and other payment processors. This allows you to utilise Cardstream as your payment gateway, irrespective of your bank, and effortlessly incorporate a fully customisable gateway into your website.

7. Stripe

Stripe is a leading payment gateway solution provider. Its headquarters are in California, United States, with an additional office in Dublin, Ireland. The company offers payment processing software and APIs for online stores and mobile apps. Trusted by over 3.1 million websites worldwide, Stripe's payment system is renowned for its reliability and efficiency.

8. Planet

Planet specialises in connecting payments with essential software for top-tier retail and hospitality brands across the globe. Whether it's integrating payments into an e-commerce checkout, a hotel booking engine, or a secure payment link for selling goods or services, Planet's online gateway facilitates accepting payments from anyone, anywhere.

Unlike traditional online gateways, Planet is tailored specifically for the retail and hospitality sectors, offering global reach, scalability, and reliability to excel in dynamic environments. This empowers merchants to accommodate online shoppers' preferences, safeguard card data, and reduce cart abandonment, fostering trust and growth.

9. eWay 

eWay is an online payment gateway tailored for merchants selling goods and services over the internet. It ensures secure and efficient payment processing for both local and international transactions, spanning across more than 180 countries.

With eWay, merchants gain access to a robust platform equipped with various tools and features to enhance business growth. Setting up is a breeze – within just 60 seconds, eCommerce merchants can integrate eWay into their websites or mobile apps and start accepting payments instantly.

10.Mollie

Mollie is Europe's fastest-growing payment services provider, trusted by over 130,000 merchants across the continent. Headquartered in Belgium, Mollie processes approximately 10 billion euros in transactions annually. Their payment gateway service is widely used by e-commerce merchants throughout Europe. Mollie's fees typically amount to 2.5% plus 0.20 euros per transaction, with no additional monthly charges. For merchants with higher transaction volumes exceeding 50,000 euros per month, Mollie offers discounted pricing.

How to Choose the Best Payment Gateway Provider for Your Business?

When selecting an online payment gateway provider in the UK, several crucial factors play a role in ensuring a smooth and secure transaction process for both your business and your customers. Here's how to make the best choice:

Security

The security of your payment gateway should be your top priority since it stores sensitive information. Ensure that the gateway is level-1 PCI DSS compliant and equipped with fraud detection tools to prevent unauthorised activities.

Easy to integrate

Look for a payment gateway that is easy to integrate with your e-commerce platform. Many providers offer ready-made UX components or payment pages, simplifying the integration process. However, you can learn from our guide on how to add a payment gateway into a website to make things easier for you.

Pricing

Consider the cost of the payment gateway, including transaction fees, monthly charges, and any additional costs. Choose a provider that offers the necessary features within your budget and consider long-term scalability as your business expands.

Customer support 

Reliable customer support is essential for addressing customer queries and complaints. Choose a payment gateway with responsive support services to ensure prompt assistance when needed.

Bank Settlement Time

While payments may be approved immediately, it typically takes a few days for the funds to settle in your account. This time frame varies from 1-7 days, depending on the service provider. Consider your cash flow needs when deciding whether to opt for immediate payment or wait for settlement. Working with a reputable e-commerce development agency can help streamline this process so you can optimise your cash flow management strategies.

It's a Wrap!

For any eCommerce business, having a reliable payment gateway is essential to facilitate smooth transactions with customers. Choose from the top 10 payment gateways listed above and ensure secure payments for your online store.

In addition to factors like security, user experience, compatibility, pricing, and customer service, it's crucial to cater to popular UK payment methods. This includes card payments, especially Visa and Mastercard®.

Whether you prioritise integration capability, pricing flexibility, or reliable support, we hope this article assists you in finding a solution that aligns with your requirements. Ready to position your business for success in the UK e-commerce market? Contact us today!

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