What’s the Best Payment Gateway in 2023?

Payment gateways are the key link between business sales and the banks that process transactions. They allow customers to enter their payment information securely so you can make money from online sales.

The best payment gateways make the process as easy as possible, both for the consumer and the merchant. You’ll need one with low fees, a simple user experience, top-notch security and great customer service.

In this guide, I’ll show you my top payment gateway choices on the market, explaining their pros and cons and who I feel they’re appropriate for.

If you’re short of time:

• Square is the best payment processor for those who offer in-person payments and want a simple solution. Learn more on their website.
• Worldpay is the best payment processor for scalability
• Shopify Payments: is the best payment processor for Shopify Users

Compare the 9 Best Website Payment Gateways

In my detailed review of the top payment gateway, I looked at factors like versatility, ease of use, global reach, and support for various payment methods.

Based on my research, the best payment gateways for businesses are Square, Stripe, PayPal, Worldpay, Adyen, Amazon Pay, Shopify Payments, Opayo (formerly Sage Pay), and Braintree. These providers offer distinct strengths and can meet the different needs of businesses.

9 Best Payment Gateways and Online Payment Systems 2023

Square: Best Payment Gateway for Microbusinesses

Square is an all-in-one solution for payment processing. They offer card readers and EPOS machines as well as simple payment gateways you can integrate with all major e-commerce systems.

Set up a free online store, process payments via social media, or even customise your setup with their free APIs and SDKs.

Connect with Wix, Weebly, Ecwid, BigCommerce, 3dcart, Drupal Commerce, WooCommerce, and Magento with a simple plugin or APP.

Square works with any UK-issued and most international tap, chip and PIN, magnetic stripe cards with a Visa, MasterCard, American Express, Maestro, Visa Electron or Vpay logo.

Square Pricing & Fees

Square’s pricing is simple.

For in-person transactions, it’s 1.75% per swipe or tap, and for online transactions, it’s 2.5%. No setup fees, no monthly charges; it’s as straightforward as it gets.

You do pay slightly more for it’s sheer simplicity. Stripe, by comparison, charges 1.5% + 20p for online transactions.

Who Should Use Square?

If you’re a micro business looking for a no-fuss, reliable payment gateway, Square should be on your shortlist. The service is excellent for those who want an all-in-one solution for payments, inventory, and even customer relationship management.

It gets my top vote for best entry level card reader.

Stripe: Best Payment Gateway for Competitive Fees

Stripe is an excellent choice for businesses that require a multi-functional platform capable of handling subscriptions, invoices, and even fraud protection. For those looking to expand globally, Stripe’s support for multiple currencies and payment methods is a significant advantage.

However, the platform’s extensive range of features can also be a drawback, particularly for smaller businesses that may find themselves paying for functionalities they don’t necessarily need. Stripe’s pricing model, while transparent, can become costly as you add more advanced features or if you process large volumes of transactions.

Another point of consideration is the technical expertise required for maximising Stripe’s full potential. While it offers pre-built solutions for those without a technical background, businesses looking to customise extensively may need a skilled developer. This could add an additional layer of cost and complexity.

Lastly, while Stripe does offer a variety of pre-built integrations, your current software stack may not be fully compatible, necessitating additional time and resources for custom integration.

Stripe Pricing & Fees

Stripe offers a pay-as-you-go pricing model. Domestic transactions are charged at 1.5% + 20p for European cards and 2.5% + 20p for non-European cards. There are no setup or monthly fees.

Using a payment link is more cost-effective at 1.2% + 20p for all UK cards.

Additional services like subscriptions or international payments come with their own pricing.

Who Should Use Stripe?

Stripe is well-suited for online businesses that require a flexible, scalable payment solution. It’s particularly beneficial for companies with a global reach due to its multi-currency support. Moreover, its rich API environment makes it an excellent choice for those comfortable with custom coding.

PayPal: Best Payment Gateway for Brand Recognition

PayPal is one of the most widely recognized and used payment gateways in the world and a very reliable way to take payments. PayPal’s broad adoption offers instant credibility for merchants, along with a range of features from invoice creation to subscription billing.

I wouldn’t suggest you use PayPal as your only payment gateway simply because the fees are amongst the highest. But it’s useful as a secondary integration because it’s so commonplace. It also supports over 200 currencies and accepts payments from over 200 countries.

PayPal Pricing & Fees

PayPal levies a fee of 2.9% plus £0.30 per transaction for domestic sales within the UK. For international transactions, the rate climbs to 4.4% per transaction, in addition to a fixed fee that varies depending on the currency involved.

While there are no initial setup or ongoing monthly fees, additional charges may be incurred for services such as chargebacks.

Who Should Use PayPal?

Given its ubiquity and ease of use, PayPal is suitable for both any type of business. It’s particularly useful for those who wish to reach a broad, international customer base, given PayPal’s widespread recognition and trustworthiness.

PayPal vs. Competitors

In contrast to Stripe’s focus on customizability and API options, PayPal offers a ready-to-use solution that appeals to businesses seeking to get started quickly. However, its fee structure makes it potentially more expensive for micro-transactions.

Worldpay: Best Payment Gateway for Diverse Payment Methods

Worldpay is a comprehensive global payment gateway, serving over 146 countries and offering more than 300 payment methods. Apparently they process some 26 million transactions a day, and they are certainlyt one of myt top providers.

They’re secure, great for multi-currency support, and can help your business offer card payments, online payments, mail and phone payments with ease. Choose from pay-as-you-go or pay monthly, and you’ll also get excellent customer servive which receives consistently good reviews.

The pay as you go rates aren’t the cheapest (2.75% of each transaction plus a fixed fee of £0.20) but it gets more competitive once you go onto a contract. That said, their contracts are quite long: typically a standard three-year contract with an auto-renewal clause that means you’ll be signed up for an additional year at the end.

Worldpay Pricing & Fees

Worldpay has a complex pricing model that can be customized based on your specific business needs. Typically, businesses will encounter a setup fee, monthly fees, and variable transaction charges depending on the payment methods used. Exact details require consultation with Worldpay.

Who Should Use Worldpay?

Worldpay is the right choice if you’re happy to enter into a contract for at least three years. It’s a huge and reliable company used by over 250,000 UK SMEs, and probably the best for integrations. Be warned that if you leave the contract early, they will still charge you the full amount.

Adyen: Best Payment Gateway for Risk Management

Adyen is a huge global payment company based in the Netherlands. Often considered a competitor to Stripe, is one of Europe’s largest fintech with a market capitalization of approximately 23.4 billion. They’re an all-in-one payments processor that delivers payments over online, mobile and in-store channels.

Adyen is a good solution for a large firm because it has a larger global network of banks and acquirers than Stripe or Worldpay. It also has very sophisticated risk management system and a scalable infrastructure. They handle high volumes of transactions for some of the world’s largest companies, such as Spotify, Uber, and Airbnb.

Adyen Pricing & Fees

Adyen employs a blended pricing model that includes a processing fee and a payment method fee. The exact cost can vary depending on the payment methods used, transaction volume, and other factors. Overall they are competitive but not suited to micro businesses.

Who Should Use Adyen?

Adyen is a great fit for mid-to-large enterprises that require a multi-currency, multi-payment method solution, particularly those that operate in multiple markets. Its advanced analytics features also make it suitable for businesses focused on data-driven decision-making.

Amazon Pay: Best Payment Gateway for Conversion

Amazon Pay stands out as a top choice for boosting conversion rates on your e-commerce site. With such a huge proportion of online shoppers already having Amazon accounts with saved payment details, they can checkout process faster and easier, reducing cart abandonment.

The familiar Amazon branding also adds a layer of trust, encouraging more customers to complete their purchases. Overall, its streamlined and trusted platform can significantly help in converting browsing into actual sales.

It’s worth pointing out Amazon Pay is focused on online payment solutions and doesn’t offer any card readers or Electronic Point of Sale (EPOS) systems. It’s designed to integrate with your online storefront to facilitate smooth transactions, rather than handling in-person sales.

Amazon Pay Pricing & Fees

• Transaction fees vary based on the country but generally range from 2.9% + £0.30 per transaction.
• No monthly fees or setup costs.

Who Should Use Amazon Pay

This payment gateway is particularly beneficial for established online businesses that want to leverage Amazon’s extensive user base and are looking for a highly secure, trusted payment solution.

Shopify Payments

Shopify Payments is the native payment gateway for the Shopify e-commerce platform. Engineered for seamless integration with Shopify stores, it streamlines the payment process, making it simpler for business owners to manage transactions within the Shopify interface.

Shopify Payments Pricing & Fees

• Standard Shopify charges apply, starting at 2.9% + 30¢ per transaction for the basic plan.
• Additional fees for international transactions and currency conversions.

Who Should Use Shopify Payments

Businesses that are already using or planning to use Shopify for their online store will find Shopify Payments to be an extremely convenient solution, designed to function seamlessly within the Shopify platform.

Opayo

Opayo, formerly known as Sage Pay, is a payment service provider based in the UK that offers a range of payment solutions, including online card processing, phone payments, and invoice payments. It’s known for its strong security features and compliance with high-level encryption and anti-fraud protocols.

Opayo Pricing & Fees

• A flat monthly fee starting from £19.90 per month for up to 350 transactions.
• Custom pricing available for larger businesses requiring a greater volume of transactions.

Who Should Use Opayo

Opayo is best suited for UK-based SMEs that require a variety of payment options and prioritize security. It’s also a good fit for businesses that prefer a flat monthly fee to a per-transaction cost.

Braintree

Braintree is a full-stack payment platform known for its ease of use and seamless integration capabilities. Owned by PayPal, it provides a range of features such as mobile payments, subscription billing, and foreign currency acceptance. The platform is designed to make complex payment needs simple, allowing businesses to focus more on their operations and less on payment processing.

Braintree Pricing & Fees

• 1.9% + £0.20 per transaction for European cards.
• 2.9% + £0.20 per transaction for non-European cards.
• Additional fees for add-on services like advanced fraud protection.

Who Should Use Braintree

Braintree is suitable for businesses that require a multifaceted payment solution capable of handling various payment types and currencies. Its seamless integration makes it a good choice for those who need to scale quickly.

How Payment Gateways Work

At its core, a payment gateway functions as a digital intermediary, facilitating the exchange of financial information between the different parties involved in a transaction.

When a customer initiates a payment, the payment gateway securely captures and encrypts the payment details and routes them to the merchant’s acquiring bank. The acquiring bank then forwards the information to the issuing bank for verification.

The payment gateway waits for the issuing bank’s response, which confirms whether the transaction is approved or declined. Upon receiving this feedback, the payment gateway conveys the status back to the merchant’s system, allowing the transaction to proceed to completion or be halted.

From a business standpoint, the reliability and efficiency of this process are crucial. A delay or failure in the payment gateway chain can lead to abandoned carts, lost sales, and diminished customer trust. Furthermore, a gateway’s ability to handle multiple payment methods and currencies becomes particularly relevant for businesses with a diverse or international customer base.

Choosing the Right Payment Gateway for Your Business

Choosing a payment gateway is a critical decision for businesses of all sizes. It can have a lasting impact on your operations, customer experience, and bottom line.

When evaluating potential options, it’s important to go beyond mere functionality and consider a range of criteria, including:

• Fees and pricing structure: Compare the upfront setup fees, transaction fees, monthly subscriptions, and any potential hidden charges to ensure that the total cost of ownership aligns with your budget.
• Integrations and compatibility: Consider the gateway’s ability to integrate seamlessly with your existing technology stack, including your e-commerce platform, point-of-sale system, and accounting software.
• Reporting and analytics: Sophisticated reporting tools can offer valuable insights into customer behavior, sales trends, and transaction success rates. This data can be used to inform strategic decision-making and performance optimisation.
• Security and compliance: Since payment gateways handle sensitive financial information, robust security features and compliance with industry standards like PCI DSS are essential.
• Scalability and flexibility: Choose a gateway that can scale in line with your growth plans, whether that entails expanding to new markets or adding additional payment methods.
• Customer support: Consider the support channels available and their responsiveness to ensure that you can get assistance when you need it most.

Setting Up a Payment Gateway

The basic steps to integrate a payment gateway with your website or POS system are generally as follows:

1. Research Options: Look at different payment gateways, consider fees, customer service, and features.
2. Compatibility Check: Make sure the one you choose works with your website or POS system.
3. Create Account: Sign up and provide the necessary business details and documents.
4. Configure Settings: Tailor the gateway settings like currency, tax, and payment methods to suit your business.
5. Integration: Add the gateway to your site or system. This might involve some coding, or using a pre-made plugin or app.
6. SSL Certificate: Ensure your website is secure with an SSL certificate for safe transactions.
7. Test Transactions: Run test payments to ensure everything works as it should.
8. Check Legalities: Make sure you’re compliant with regulations like PCI DSS for card payments.
9. Set Up Refund Policy: Make sure you have a clear refund and return policy, and that it’s easily accessible to customers.
10. Go Live: Once you’re sure everything works and is compliant, activate the gateway for customer use.
11. Monitor: Keep an eye on transactions and customer feedback to make sure everything is running smoothly.
12. Optimise: Use analytics to improve user experience and potentially lower cart abandonment rates.

What types of businesses are payment gateways suitable for?

Payment gateways are versatile and can be used by a wide range of businesses, including:

• Online retailers: E-commerce platforms need a secure and efficient way to handle online payments.
• Brick-and-mortar stores: Physical retail outlets can benefit from integrated payment gateways in their POS systems for more payment options and faster checkout.
• Subscription services: Businesses that offer subscription-based products or services can automate recurring charges through payment gateways.
• Digital services: Companies that sell digital products, software, or online courses can utilize payment gateways for instant access post-purchase.
• Nonprofits: Charitable organizations can use payment gateways to securely process donations online.
• B2B companies: Business-to-business operations often involve large transactions, and a robust payment gateway can streamline these.
• Freelancers and consultants: Individual service providers can use payment gateways to facilitate easy payment for their services, often through invoicing platforms that integrate a payment gateway.
• Food and beverage industry: Restaurants and cafes offering online ordering can make the process more efficient with an integrated payment gateway.

What are the Cheapest Payment Gateways?

The most affordable payment gateways are:

It’s worth noticing cheaper transaction rates are often available for businesses willing to commit to long-term contracts or those processing a high volume of transactions per month.

Alternative Payment Solutions

If a traditional payment gateway doesn’t align with your business requirements, there are other financial technology solutions to consider. Peer-to-peer payment systems, direct debit services, and cryptocurrency payment platforms are among the alternatives.

While these may not offer the full range of features that dedicated payment gateways provide, they can offer specific advantages such as lower fees or faster transactions, depending on your business needs.

1. Cryptocurrency Processors: Platforms like BitPay or Coinbase Commerce allow merchants to accept cryptocurrencies like Bitcoin or Ethereum. These services often charge lower fees but require both merchants and consumers to be comfortable with digital currencies.
2. Direct Bank Transfer Systems: Solutions such as GoCardless or Bacs in the UK facilitate direct debit payments from a customer’s bank account to the merchant’s account. This method is often used for subscription-based services.
3. Cheque Payments: Although increasingly uncommon, some businesses still accept cheques as a form of payment. This method is often used for B2B transactions.
4. Bank Transfers: Direct transfers from one bank account to another can be arranged without the involvement of a dedicated payment processor. However, this method is often cumbersome for routine retail transactions.
5. Escrow Services: These are third-party services that hold funds until goods or services are delivered, commonly used in freelance or contract work.
6. Money Order: Similar to cheques but more secure, money orders are often used for larger transactions and are common in the real estate industry.
7. Layaway Plans: Some retailers offer layaway plans that allow customers to reserve a product by paying a small deposit, then paying off the balance over time before receiving the product.

Frequently Asked Questions