Best Payment Gateway UK (2026): Fees Compared
Choosing the best payment gateway in the UK comes down to three things: what you sell, how much you process each month, and whether you already have a merchant account. There is no single winner for every business, but there is usually a clear winner for yours. This guide compares the main UK options on fees, features and fit so you can pick with confidence.
What is the best payment gateway in the UK?
For most UK small businesses, Stripe is the best all-round payment gateway thanks to flexible tools and no monthly fee. Square suits simple online shops, PayPal adds buyer trust, SumUp works well for payment links without a website, and a gateway-only product like Opayo makes sense if you already hold your own merchant account.
The right answer shifts with volume. At low volume, pay-as-you-go pricing with no monthly fee almost always wins. As your online sales grow past a few thousand pounds a month, per-transaction percentages start to matter far more than monthly fees, and negotiating a custom rate or pairing a gateway with your own merchant account becomes worthwhile. The logic is the same one we cover in flat-rate vs custom pricing, just applied online.
What does a payment gateway actually do?
A payment gateway securely captures your customer's card details at checkout, encrypts them, and passes them to the banking system for approval. It is the online equivalent of the card machine on your counter.
The gateway talks to an acquirer, which actually moves the money. Some providers bundle both roles into one service, which is why fees and setup vary so much. We explain the full chain in what is a payment gateway and what is an acquirer.
How much do UK payment gateways charge?
Most UK payment gateways charge between 1.4% and 2.9% plus 20p to 30p per online transaction, with no monthly fee on pay-as-you-go plans. Gateway-only products charge a monthly fee from around £32 instead, with your acquirer billing transaction fees separately.
| Provider | Typical published online rate | Monthly fee | Best for |
|---|---|---|---|
| Stripe | 1.5% + 20p (UK consumer cards) | None | Flexibility, subscriptions, developers |
| Square | 1.4% + 25p (UK cards) | None | Simple online shops, links, in-person mix |
| PayPal | Up to 2.9% + 30p | None | Buyer trust, marketplaces, casual sellers |
| SumUp | 2.5% (payment links) | None | Selling without a website |
| GoCardless | 1% + 20p (Direct Debit, capped) | None | Recurring invoices and subscriptions |
| Opayo (gateway only) | Set by your acquirer | From around £32 | Businesses with their own merchant account |
Rates shown are standard published pricing at the time of writing and vary by card type and plan, so always confirm on the provider's site. Non-UK and corporate cards usually cost more, and higher-volume businesses can often negotiate below the headline rate.
Which payment gateway is best for a small online shop?
For a small UK online shop, Square or Stripe are usually the best fit. Both plug into the major ecommerce platforms, charge no monthly fee, and settle quickly.
If you already use Squarespace, Wix or Shopify, check which gateways your plan supports before choosing, because platform lock-in matters more than a fraction of a percent. Shopify, for example, applies extra transaction fees when you use a third-party gateway instead of its own.
Which is best if you already have a merchant account?
If you already hold a merchant account with an acquirer, a gateway-only product such as Opayo connects your website to that account, so you keep your negotiated card rates and pay a flat monthly gateway fee instead of a bundled percentage.
This route usually works out cheaper for established businesses processing higher volumes, because bundled gateways charge a premium for convenience. If you are not sure whether you have a dedicated merchant account, our guide to what a merchant account is breaks it down.
Which is best for invoices and recurring payments?
GoCardless is the strongest option for recurring payments because it collects by Direct Debit at 1% plus 20p, capped per transaction, which undercuts card rates significantly on larger invoices.
Stripe also handles subscriptions well by card, and most gateways now offer payment links for one-off invoices. For the mechanics of collecting by Direct Debit, see Direct Debit explained.
How do you choose without overpaying?
Work out your average transaction value and monthly online volume, then compare the real monthly cost of each gateway rather than the headline rate. A 2.9% gateway on £3,000 a month costs around £87 in percentage fees; a 1.5% gateway costs around £45 for the same sales.
Fixed pence fees hit small transactions hardest, and percentage fees hit large ones, so a coffee subscription business and a furniture maker can reach opposite conclusions from the same table. If your online and in-person fees together feel high, our guide on how to lower your card processing fees covers the levers you can pull.
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Get your free statement reviewFrequently asked questions
What is the cheapest payment gateway in the UK?
On headline rates, Square at 1.4% plus 25p and Stripe at 1.5% plus 20p are among the cheapest pay-as-you-go options for UK cards. The true cheapest option depends on your transaction size: fixed pence fees make small payments proportionally expensive, while percentage fees dominate on larger ones.
Do payment gateways charge monthly fees?
Most pay-as-you-go gateways such as Stripe, Square and PayPal charge no monthly fee and take a percentage per transaction instead. Gateway-only products for businesses with their own merchant account typically charge from around thirty-two pounds a month, with transaction fees billed by your acquirer.
Do I need a merchant account to use a payment gateway?
No. Providers such as Stripe, Square, PayPal and SumUp act as payment facilitators, which means they aggregate your payments under their own merchant account. You only need your own merchant account if you choose a gateway-only product.
Is PayPal a payment gateway?
Yes. PayPal works as a bundled gateway and processor, and it also offers its familiar wallet checkout. Many businesses run PayPal alongside a card gateway because some customers simply prefer paying with it.
How long do payment gateways take to pay out?
Most UK gateways settle in one to three working days. Some offer next-day or instant payouts, sometimes for a small extra fee, so check the settlement terms as closely as the transaction rate.
Can I use more than one payment gateway?
Yes, and many businesses do. A common setup is a card gateway for checkout plus PayPal as a secondary option, or Direct Debit for recurring invoices alongside cards for one-off sales.
Are payment gateways safe?
Reputable gateways are PCI DSS compliant and encrypt card details end to end, which means the sensitive data never touches your own systems. Using a hosted gateway is generally the safest and simplest route for a small business.
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