The UK is an enormous globally leading e-commerce market. Its e-commerce market is also the major driver of the economy. A report by J.P. Morgan highlights, prior to COVID-19, it contributed to 16.5 per cent of the total annual business turnover in the country. During the pandemic, the sales hit a record high in April of 2020, with 30.7 per cent of all retail sales were from e-commerce as opposed to 19.3 per cent before the pandemic. Future projections affirm the steady growth of e-commerce long after the pandemic subsides. As more and more businesses transition to a more agile business model, finding the right resources and technology is more crucial than ever today. Since people are moving away from cash sooner than ever before, businesses need to accommodate these payment preferences to increase frequency. The following table provides an overview of how frequently consumers used cash to make payments. 

Checkout the top 5 payment gateways ➡

Cash payments trend: 

Year	Cumulative cash payment volume (%)
2010	56
2015	45
2020	17

According to a report published by UK Finance, in 2020, there were 13.7 million that used cash merely once a month or not all to make payments. The same report also takes into account the other payment methods consumers are using instead. 

Payment mode	Payment volume (millions)
Debit card	15812
cash	6075
Direct debit	4507
Credit / charge / purchasing card	2827
Bacs Direct Credit	1945
Other	732
Cheque	185

This data reflects that over half of all the payments made by customers for their purchases were card payments. 

Whether your business has made the transition effectively or is still in the process of figuring out your strategy and logistics, choosing the right payment gateway can be nerve-wracking. Online payments have become a critically important feature of every e-commerce marketplace. To process payments online, integrating with a payment gateway is the way to go. 

Top 5 Ecommerce Payment Gateways: 

Worldpay: 

It provides merchant services and payment gateway services to process online transactions. In 2019, it was merged into Fidelity National Information Services and now it has over 20,000 customers making use of its payment gateway. It supports over 120 currencies globally making it a very convenient option for customers all over the world. It is adequately flexible and remarkably effective. 

Pricing

• Merchant Service Charge (standard) – £19pm
• Merchant Service Charge (advanced) – £45pm
• PCI Compliance Fee: £29.99 per year
• Chargeback fee: £15

Pros

• Real-time data
• Fast payouts 
• Global reach
• Flexible price plans
• Fraud protection
• Accepts all cards

Cons

• Hit or miss customer service
• Variable service charges

Although, having a payment processing partner like Worldpay means dealing with a large provider. Thus, customer support will be hit or miss. So if you have account issues, it might drastically compromise the customer service the gateway offers. 

Shopify: 

This comprehensive payment gateway is also a leading e-commerce platform in the UK that will help you set up your online business in just a few clicks. It is an exceptional choice if you have a website on Shopify up and running. However, if you consider integrating a third-party payment processing system for your Shopify website, the fees will be much unfavourable. 

Pricing

Plan type	Cost
Basic Shopify – suitable for new e-commerce businesses	$29pm
Shopify – suitable for a growing business with online and in-store sales	$79pm
Advanced Shopify – offers advanced features for businesses wishing to scale	$299pm

Pros

• Provides the full e-commerce package (website setup + payment gateway)
• 14-day free trial
• Affordable plans
• Join without a credit card

  Cons

• Cost more to integrate the site with a third party payment gateway

Shopify payments are ideal for any business that intends on selling online. It has an effortless signing up process and you can test the platform for free before deciding whether you want to commit to it. 

Stripe

It offers “a fully integrated suite of payments products”. It has a merchant account, an effective payment gateway and helps you create your customised payment gateway. It also allows you to send invoices, get financing and organise business spendings. It accepts more than 100 currencies and all the major credit and debit cards. Regardless, many have had difficulties with withheld funds and delayed customer support. 

Pricing

• Transaction fees (European cards): 1.4% plus 20p
• Transaction fees (non-European cards): 2.9% +20p 
• Chargeback Fees: £14

Pros

• Transparent pricing
• Customisable payment gateway
• Intuitive user interface
• No monthly fees or setup cost

Cons

• Account freezes
• Technical knowledge required to best navigate 
• Issues with customer service

Paypal

It is indefinitely one of the most familiar and trusted payment gateways out there. They are known for fast checkouts and secure transactions. It has over 360 million active users and accepts online payments in over 100 currencies. It does not have consistent transaction fees and is budget-friendly for businesses that wish to scale. Though might be less favourable for businesses with smaller sales targets. 

Pricing

• Transaction fees: 1.9%-3.4% + 20p per transaction
• Chargeback Fees: £14
• Monthly Fees: £20 per month (Web Payments Pro)

Pros

• Easy to setup 
• Supports recurring payments 
• Fraud protection
• Accepts most major cards
• Transparent pricing 

Cons 

• High fees for businesses with low volume sales
• Customisation is available with only the extensive version
• The free version is basic

You can accept payments conveniently with Paypal’s flexible and intuitive payment gateway. However, some users complained that their account was suspended without justification. 

Omnipay

It offers flawless integration to enable the immediate processing of payments. Offering a plethora of tools for your business payments needs, they make over 35 million transactions annually. This complex yet easy to use payment gateway was founded in 2012 and provides merchant services to businesses throughout Europe and recently expanded into Australia, New Zealand, Ireland. It is known for charging fair rates for processing transactions. 

Pricing

• Merchant service charge – Credit: 0.7% 
• Merchant Service Charge – Debit: 0.5%
• Terminal Hire: £10 
• Authorisation Fee: £0.03
• Chargeback fee: £15

Pros

• No setup fee or minimum monthly service charge
• Transparent pricing 
• Get paid however you choose
• Access to detailed reports
• Fraud protection 
• Customer service

Cons

• A lot of pros

OmniPay offers a full suite of merchant services that includes the most loved OmniPay App to accept and track payments through the phone. And the gateway offers full integration to most of the popular shopping carts.

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