Top 10 Best Payment Gateway for Small Business in the UK (2025)
Altitude Design18 min read
Choosing the best payment gateway for your small business is more than a technical decision-it's about creating a seamless, trustworthy experience for your customers and ensuring you get paid efficiently. With countless options available in the UK, navigating the maze of transaction fees, integration complexities, and feature sets can be overwhelming. This guide demystifies the process, breaking down the top 12 contenders for 2025. We'll move beyond marketing jargon to analyse real-world use cases, hidden costs, and the practicalities of getting set up, helping you select a partner that fuels your growth rather than hindering it. Whether you're launching your first online shop, managing subscriptions, or unifying online and in-person sales, the right gateway is critical to your success.
This resource is designed specifically for small businesses in Scotland and across the UK, from Dalkeith retailers setting up their first e-commerce store to service-based firms in Midlothian needing reliable booking payments. We understand that finding the best payment gateway for a small business means balancing cost, features, and customer convenience. Each profile in this list includes a detailed breakdown, screenshots, and direct links to help you evaluate your options quickly. For a deeper dive into comparing various payment gateways and finding the one that best suits your needs, explore an expert payment gateway comparison guide to supplement our findings. Our goal is to provide a clear, practical roadmap to selecting the financial engine that will power your business, streamline your operations, and help you get paid without hassle.
1. Stripe
Stripe has firmly established itself as a leading contender for the best payment gateway for small business, particularly for those with digital-first models and ambitions to scale. It offers a powerful, developer-centric platform that manages to be both accessible for startups and robust enough for large enterprises. Its comprehensive suite of tools goes far beyond simple card processing, encompassing subscriptions, invoicing, and a sophisticated global payment infrastructure.
For a UK-based small business, Stripe's standout feature is its vast ecosystem and flexibility. Whether you're using a popular e-commerce platform like Shopify or building a custom application, Stripe's extensive APIs and clear documentation make integration straightforward. This allows businesses to create seamless, branded checkout experiences. The platform also excels in handling international transactions, supporting over 135 currencies and local payment methods, which is crucial for any SME looking to expand its market reach beyond the UK.
Key Features & Pricing
Feature
Details
Pricing
1.5% + 20p for standard UK cards. 2.5% + 20p for European Economic Area cards. No monthly fees.
Payment Methods
Accepts all major debit and credit cards, digital wallets (Apple Pay, Google Pay), and Buy Now, Pay Later (BNPL) services like Klarna.
Invoicing & Billing
Includes robust tools for creating professional invoices and managing recurring payments and subscriptions automatically.
Fraud Prevention
Stripe Radar, its machine-learning-based fraud detection tool, is built-in, helping to identify and block fraudulent transactions.
PayPal is a household name, making its Commerce Platform a strong contender for the best payment gateway for small business due to its unparalleled brand recognition and consumer trust. For many online shoppers, the PayPal button is a familiar and reassuring presence at checkout, which can significantly boost conversion rates. It offers an all-in-one solution that allows businesses to accept payments via the PayPal wallet, major credit and debit cards, and alternative methods like "Pay in 3".
For a small business in the UK, PayPal’s key advantage is its simplicity and speed of setup. Integrating it into most e-commerce platforms is often a matter of a few clicks, making it highly accessible for merchants without technical expertise. The platform provides a unified dashboard for managing all transaction types, from online sales to QR code payments in-person. This ease of use, combined with built-in dispute resolution and reporting tools, allows business owners to start accepting payments quickly and manage their revenue streams effectively.
Key Features & Pricing
Feature
Details
Pricing
1.2% + 30p for standard UK commercial transactions via PayPal checkout or QR code. 1.2% + 30p for most card payments online.
Payment Methods
Accepts PayPal wallet balance, all major debit and credit cards, Venmo (in the US), and Buy Now, Pay Later (BNPL) with PayPal Pay in 3.
Micropayments
Special rates (e.g., 5% + 5p) for businesses selling low-value items, available upon application and approval.
Fund Access
Funds are typically available in your PayPal Business account moments after a transaction, ready for transfer or use.
Square has become a go-to choice for small businesses needing a unified system for both online and in-person sales. It stands out by offering an all-in-one ecosystem that combines a payment gateway, point-of-sale (POS) hardware, and e-commerce tools, making it an excellent best payment gateway for small business owners who value simplicity and cohesion across all their sales channels.
For a UK small business, especially in retail or hospitality, Square's strength lies in its seamless integration of physical and digital payments. A cafe can use a Square reader for counter-top sales and Square Online for click-and-collect orders, with all transactions and inventory syncing in one place. Its fast onboarding and transparent, flat-rate pricing remove the complexity often associated with traditional merchant accounts, allowing businesses to start accepting payments almost immediately. For those just starting their digital journey, this simplicity is invaluable when learning how to create an online store.
Key Features & Pricing
Feature
Details
Pricing
1.4% + 25p for UK cards online. 2.9% + 25p for non-UK cards online. No monthly fees for standard plans.
Payment Methods
Accepts all major cards, Apple Pay, Google Pay, and provides options for Buy Now, Pay Later services like Clearpay.
Invoicing & Billing
Send professional invoices and payment links directly from the app or dashboard at no extra monthly cost.
POS Integration
Free POS app that works on standard tablets and smartphones, with a full suite of integrated hardware available for purchase.
Worldpay is a long-standing and highly recognised name in the UK payments industry, making it a reliable choice as a best payment gateway for small business looking for an established provider. It offers a comprehensive service that covers both online e-commerce transactions and in-person card terminals, presenting a unified solution for businesses with a physical and digital presence. Its reputation is built on stability and a strong UK-based support network.
For a small business in the UK, Worldpay’s key advantage lies in its versatile pricing models and rapid settlement times. Unlike many newer fintechs, Worldpay often settles funds into your business account the next business day, significantly improving cash flow. Its focus on the UK market means its support and infrastructure are well-aligned with local business needs, a crucial factor for companies who value a strong domestic partner. This localised approach is beneficial for businesses that prioritise local customer engagement, similar to the benefits seen in effective local SEO for small businesses.
Key Features & Pricing
Feature
Details
Pricing
Pay-as-you-go online plan from 2.75% + 20p. Fixed monthly plans are also available for more predictable costs. Custom pricing for larger volumes.
Payment Methods
Accepts all major credit and debit cards, with options to add digital wallets like Apple Pay and PayPal.
Settlement Speed
Next-business-day settlement is a standard feature, which is faster than many competitors.
Fraud Prevention
Includes FraudSight, a standard tool designed to help screen and manage potentially fraudulent transactions.
Elavon, which incorporates the trusted legacy of Opayo (formerly Sage Pay), offers a robust and reliable payment solution that is often considered the best payment gateway for small business owners who prefer a more traditional provider. It combines a secure online gateway with the option of a dedicated merchant account, providing an all-in-one package from a well-established name in the UK payments industry. This makes it particularly suitable for SMEs who value stability and comprehensive, UK-based support.
For a small UK business, Elavon's strength lies in its blend of online and offline capabilities. The platform is well-suited for businesses with multiple sales channels, such as an e-commerce store alongside telephone or mail-order sales (MOTO). Its "Always Open" package is designed for simplicity, offering a fixed monthly fee that includes a set number of transactions. This predictable pricing model can be beneficial for businesses managing tight budgets. Furthermore, its 24/7 technical support provides peace of mind for business owners who need immediate assistance.
Key Features & Pricing
Feature
Details
Pricing
"Always Open" plan at £19.90/month, including 350 transactions. Additional transactions are charged at 12p each.
Payment Methods
Accepts all major credit and debit cards, with support for multi-currency processing and MOTO payments.
Funding & Security
Offers next-day funding to help with cash flow and provides support to assist with PCI DSS compliance.
Customer Support
Provides 24/7 UK-based technical support via phone, ensuring help is available whenever it's needed.
For businesses already committed to the Shopify ecosystem, Shopify Payments isn't just a convenient option; it's often the most logical and cost-effective choice, making it a strong candidate for the best payment gateway for small business within that platform. It is Shopify's own integrated payment processor, designed to eliminate the need for a third-party gateway, thereby streamlining the entire sales process from checkout to payout. This native integration simplifies setup and management significantly.
The primary advantage for a UK small business is the seamless operational efficiency. Activating Shopify Payments is a one-click process within the Shopify admin dashboard. All payments, refunds, and chargebacks are managed directly in the same interface where you handle products and orders. Crucially, using it removes the additional transaction fees that Shopify otherwise charges for using external gateways, a saving that can be substantial as sales grow. For those evaluating their entire digital setup, understanding how this fits into the best ecommerce platform for small business is a critical first step.
Key Features & Pricing
Feature
Details
Pricing
Varies by Shopify plan. Starts from 2% + 25p for Basic plan (online). No monthly fees beyond the Shopify subscription.
Payment Methods
Accepts all major credit/debit cards, Apple Pay, Google Pay, and Shop Pay for accelerated checkouts.
Integrated Payouts
Consolidates online and POS sales into a single payout, with financial reporting available directly within the Shopify dashboard.
Fraud Prevention
Built-in fraud analysis automatically flags high-risk orders, helping to reduce chargebacks and protect your business.
Mollie has emerged as a strong European-focused contender for the best payment gateway for small business, especially for UK-based SMEs targeting customers on the continent. It champions a straightforward, pay-as-you-go approach, eliminating monthly fees for its core services. This makes it an accessible and predictable choice for businesses that need a simple yet powerful payment solution without long-term commitments or hidden costs.
The platform’s key differentiator is its seamless integration of popular European payment methods alongside standard card processing. For a small business in Scotland or anywhere in the UK looking to sell into countries like the Netherlands or Germany, offering local payment options like iDEAL or SEPA Direct Debit is crucial for conversion. Mollie simplifies this process significantly, managing all methods through a single contract and integration, removing a major hurdle to cross-border e-commerce.
Key Features & Pricing
Feature
Details
Pricing
UK Cards: 1.2% + 20p. European Cards: 2.5% + 20p. No setup or monthly fees for standard gateway services.
Payment Methods
Major cards, Apple Pay, Google Pay, and leading European methods like iDEAL, Bancontact, SOFORT Banking, and Klarna (BNPL).
Integrations
Offers ready-made plugins for major e-commerce platforms including Shopify, WooCommerce, Magento, and BigCommerce.
In-Person Payments
Provides an add-on Point of Sale (POS) solution for businesses needing to unify online and offline sales channels.
Revolut Business is quickly becoming a powerful contender for the best payment gateway for small business, especially for UK SMEs that value an all-in-one financial solution. It uniquely combines business banking, foreign exchange, and payment acquiring into a single, streamlined platform. This integrated approach simplifies financial management, allowing businesses to accept payments, manage funds, and handle international transactions without juggling multiple providers.
For a modern small business, Revolut’s key advantage lies in its highly competitive pricing and modern feature set. The platform offers a full suite of payment acceptance tools, from online checkouts and payment links to card readers and Tap to Pay on iPhone. This flexibility caters to both online e-commerce stores and brick-and-mortar shops. Its transparent fee structure and built-in multi-currency accounts are particularly beneficial for businesses dealing with international suppliers or customers, helping to reduce cross-border transaction costs significantly.
Key Features & Pricing
Feature
Details
Pricing
For UK consumer cards: 1% + 20p online. In-person UK consumer cards from 0.8% + 2p. Monthly plan fees may apply.
Payment Methods
Accepts major credit/debit cards, Apple Pay, Google Pay, and Revolut Pay. Supports both online and in-person payments.
Integrated Banking
Combines payment processing with multi-currency business accounts, foreign exchange, and corporate cards.
Flexibility
Offers a variety of payment solutions including customisable online checkout, QR codes, payment links, and physical card readers.
Checkout.com presents itself as a sophisticated, full-stack payment service provider, positioning it as a strong candidate for the best payment gateway for small business with significant growth ambitions. It provides a modular, cloud-based platform that offers granular control over payments, making it ideal for scaling SMEs that require more than just basic transaction processing. It is designed for businesses that want deep insights and a high degree of customisation in their payment infrastructure.
For a UK-based business planning international expansion, Checkout.com's key differentiator is its unified global acquiring footprint. This allows businesses to process payments domestically in numerous countries, which can improve authorisation rates and reduce cross-border fees. The platform’s advanced data analytics and reporting tools give businesses a transparent view of their transaction data, helping them to optimise their payment flows and identify trends, which is a significant advantage for data-driven companies.
Key Features & Pricing
Feature
Details
Pricing
Bespoke pricing. Offers a choice between flexible flat-rate or transparent Interchange++ models, requiring a custom quote.
Payment Methods
Supports all major card schemes, digital wallets, and over 150 currencies for global reach.
Global Reach
Domestic acquiring in over 45 countries, enabling local payment processing to boost acceptance rates.
Analytics & Reporting
Provides advanced, granular data through a unified API for detailed performance analysis and reconciliation.
10. GoCardless (bank payments/Direct Debit + Instant Bank Pay)
GoCardless offers a compelling alternative to traditional card networks, positioning itself as a specialist in bank-to-bank payments. It is an excellent choice for UK small businesses that rely on recurring revenue, subscriptions, or regular invoicing. By focusing on Direct Debit and open banking-powered Instant Bank Pay, it directly addresses the high costs and involuntary churn associated with expired or cancelled cards, making it a strong contender for a specific type of best payment gateway for small business.
For a business model built on retainers, memberships, or service invoices, GoCardless provides significant advantages. Its core strength lies in automating payment collection directly from a customer's bank account, which dramatically reduces payment failures. The introduction of Instant Bank Pay also allows for one-off payments to be confirmed immediately, bridging the gap between slow bank transfers and instant card payments. Its deep integrations with accounting software like Xero and QuickBooks mean that payment reconciliation is seamless, saving valuable admin time for SMEs.
Key Features & Pricing
Feature
Details
Pricing
For UK transactions: 1% + 20p (capped at £4). International and advanced plans available with different pricing structures.
Payment Methods
UK Direct Debit (Bacs), SEPA, and bank debits in over 30 countries. Instant Bank Pay for immediate one-off payments.
Integrations
Over 350 integrations with major accounting, CRM, and subscription management platforms like Xero, Sage, and Zuora.
Success+
A tool that uses machine learning to predict and intelligently retry failed payments at the optimal time to increase success rates.
Amazon Pay leverages one of the world's most trusted brands to offer a streamlined checkout experience for customers. While not a full-service payment service provider, it serves as a powerful supplementary option that can significantly boost conversions. It allows millions of shoppers to use their existing Amazon account details to pay on a third-party website, removing the friction of entering card and address information and increasing customer confidence.
For a UK small business, adding Amazon Pay alongside a primary gateway like Stripe or PayPal is a strategic move to capture sales that might otherwise be abandoned. The familiarity and security associated with the Amazon brand can reassure hesitant buyers. It integrates smoothly with major e-commerce platforms, offering a familiar login and payment process that reduces checkout time and builds instant trust, making it a valuable addition to any list of the best payment gateway for small business options.
Key Features & Pricing
Feature
Details
Pricing
Volume-based: 2.7% + 30p for monthly volumes under £50,000, scaling down to 1.9% + 30p for higher volumes. An authorisation fee also applies.
Payment Methods
Allows customers to use any credit or debit card stored in their Amazon account.
Consumer Trust
Leverages Amazon's A-to-z Guarantee and advanced fraud protection, providing peace of mind for both merchant and customer.
Integration
Offers simple integration with major e-commerce platforms like Shopify, BigCommerce, and Magento, as well as custom solutions.
Adyen offers an enterprise-grade payment solution that is increasingly accessible to ambitious UK SMEs, positioning it as a powerful contender for the best payment gateway for small business focused on growth and international sales. It operates on a unified commerce platform, meaning a single integration gives businesses access to a vast array of payment methods online, in-app, and in-store. This approach simplifies operations and provides a holistic view of customer transactions across all channels.
For a growing UK business, Adyen’s key differentiator is its transparent Interchange++ pricing model and powerful data analytics. This structure can be more cost-effective at scale compared to fixed-rate pricing, as it passes on the direct interchange and scheme fees. Furthermore, its advanced risk management tools and detailed reporting offer deep insights into payment performance, helping businesses to optimise authorisation rates and reduce fraud, a crucial advantage when expanding into new markets.
Key Features & Pricing
Feature
Details
Pricing
Interchange++ or a processing fee + payment method fee. For example, UK Visa/Mastercard is IC++ plus a 10p processing fee. No setup or monthly fees, but minimum invoice amounts may apply.
Payment Methods
A single integration provides access to over 100 global and local payment methods, including all major cards, digital wallets, and region-specific options.
Unified Commerce
Manages online, mobile, and physical point-of-sale transactions through one system, providing consolidated data and reporting.
Risk Management
Advanced, customisable fraud prevention tools that use machine learning to adapt to specific business risk profiles.
Navigating the landscape of payment gateways can feel overwhelming, but after reviewing the capabilities of providers from Stripe to GoCardless, a clear picture emerges. The central takeaway is that the best payment gateway for your small business is not a one-size-fits-all solution. Instead, it is the one that aligns most precisely with your unique business model, customer preferences, and future growth trajectory. Your choice is a strategic partnership, not just a technical integration.
We've seen how platforms like Stripe and Adyen excel with their developer-first approach, offering unparalleled customisation for tech-savvy businesses aiming for global scale. Conversely, Square and Shopify Payments provide a beautifully integrated, all-in-one ecosystem for retailers and e-commerce brands who value simplicity and a unified view of their online and in-person sales. For businesses in Dalkeith and across Scotland relying on recurring revenue or subscriptions, GoCardless offers a powerful, cost-effective alternative focused on bank-to-bank payments and Direct Debit.
Key Considerations Before You Commit
Before finalising your decision, it's crucial to step back and synthesise your findings. Your final choice should be a deliberate one, grounded in a clear understanding of your operational needs. Reflect on these critical questions:
What is your primary sales channel? An e-commerce-heavy business has different needs from a local tradesperson in Midlothian who primarily sends invoices, or a retailer who needs a seamless Point of Sale (POS) system. Square shines for omnichannel retail, while Mollie or Elavon can be excellent for straightforward online stores.
Who are your customers? Do they expect to pay with digital wallets like Apple Pay and Google Pay? Are they international, requiring multi-currency support? Platforms like PayPal and Revolut Business are strong contenders here due to their wide user bases and currency features.
What is your technical comfort level? Are you or your developer prepared to work with APIs for a custom integration, as you would with Stripe or Checkout.com? Or do you need a plug-and-play solution that works out of the box with minimal configuration, like Shopify Payments?
How predictable are your sales volumes? A startup with fluctuating sales may favour a pay-as-you-go model with no monthly fees, a hallmark of Stripe and PayPal. In contrast, a more established business with consistent, high-volume transactions might benefit from the custom pricing offered by providers like Worldpay or Adyen.
From Selection to Implementation: A Strategic Approach
Choosing your payment gateway is only the first step. The implementation process is where your decision translates into tangible results for your business. A poorly integrated gateway can lead to a frustrating customer experience, abandoned carts, and lost revenue. A seamless integration, however, builds trust and maximises conversions.
This is especially true when it comes to your website's performance. The speed, security, and user experience of your online store are directly impacted by how well your payment gateway is integrated. A clean, efficient website codebase ensures that the checkout process is fast and reliable, preventing technical glitches that can deter customers at the final hurdle. Partnering with a web design team that understands these technical nuances is vital.
Ultimately, optimising your payment processing is a foundational element of a much larger business strategy. A frictionless checkout experience is critical, but it works best when combined with other initiatives designed to attract, convert, and retain customers. To build on this foundation, it's essential to explore more potent growth strategies for your small business to ensure sustainable, long-term success. By pairing a best-in-class payment system with a proactive growth mindset, you create a powerful engine for your company's future.
Ready to build a high-performance website that provides a seamless checkout experience for your customers? At Altitude Design, we specialise in creating fast, secure, and professional websites for Scottish businesses, with clean code that integrates perfectly with leading payment gateways like Stripe and PayPal. Visit Altitude Design to learn how our transparent, fixed-price web design services can help you maximise conversions and grow your business online.
