Choosing an Online Payment System: UK Provider Guide
03.02.2025
Accept Online Payments with Noda
It's important to note that the information about the payment providers in this article was taken from their websites on 27 January 2025 and is subject to change.
In the UK, 60 million internet users increasingly use online platforms for different activities, including their purchases. In fact, 80% of the UK population engages in e-commerce transactions, highlighting a clear preference for the convenience of online shopping.
This growing bias towards online shopping demands reliable payment processing solutions for merchants. Choosing the right provider can ensure smooth payments, positively impacts business costs, enhance the customer experience and drive growth potential.
This guide examines top UK online payment systems' features, capabilities and limitations to help you choose the right platform for your business.
Starting with the Basics
What is an Online Payment System and How Does it Work?
An online payment system is a crucial financial infrastructure that enables money movement between buyers, sellers and banks. It combines all necessary components - from payment gateways that capture customer details to processing services that authenticate transactions and transfer funds - while maintaining security and regulatory compliance throughout the payment chain.
Payment systems in the UK differ in several key aspects: transaction processing methods, integration requirements, geographic coverage, and pricing models. For example, traditional card-focused providers typically include interchange fees plus their own charges, while newer solutions like open banking can offer more cost-effective alternatives. These differences directly impact operational efficiency and profit margins, making it essential to understand how each provider's offering aligns with your business model.
Best Online Payment Systems in the UK: Points to Consider
When choosing an online payment system, prioritise:
Payment Methods and Costs
Identify which payment types (credit card, direct bank transfers, digital wallets) suit your business needs and their associated transaction fees, setup costs and transparent ongoing charges. Understanding these costs is crucial for budgeting and financial planning.
Geographic Scope
Consider supported countries, currencies and cross-border transaction capabilities. Extensive geographic support is vital for businesses looking to expand internationally or serve a diverse customer base.
Technical Integration
Evaluate the implementation complexity, available developer tools and compatibility with your systems.
Security and Compliance
Ensure the system adheres to fraud prevention measures, regulatory standards, and data protection. Robust security and compliance are vital to protecting your transactions and maintaining customer trust.
Choosing the Right Payment System for Your Business
Top 5 Online Payment Systems in the UK
Stripe
Headquartered in San Francisco and Dublin, Stripe serves a wide range of industries globally, including e-commerce, SaaS and retail. It is particularly well-suited for large enterprises and multinationals but also offers tools for small businesses and startups. While Stripe supports an extensive array of payment methods and currencies, its comprehensive services come at a higher cost, including fees for additional features like invoicing and subscription management.
| Company Name | Stripe |
| Services Offered | Online and in-person payment processing, subscription management, no-code integration solutions and more |
| Fees (charged per transaction) | - UK cards: 1.5% + 20p - EU cards: 2.5% + 20p - International cards: 3.25% + 20p - BNPL: from 4.99% + 20p - Dispute fee: £20 per dispute - Additional fees for invoicing and other services |
| Benefits | Supports 135+ currencies and payment methods, tailored solutions for various industries, multiple integration options |
| Downsides | High cost, additional charges for essential payment platform services like invoicing |
| Industries | E-commerce, SaaS, marketplaces, startups, retail and enterprises |
| Supported Payment Methods | Debit and credit cards, mobile wallets, crypto, BNPL platforms, local payment methods, pay-by-bank |
Noda
Based in London, Noda provides a comprehensive payment service marketplace beyond basic transaction processing. Through its full-stack platform, merchants can access everything from open banking and card payments to customer data services and no-code solutions. The platform specialises in digital payments across 28 countries, combining payment processing, data enrichment, automated invoicing and customisable integration tools.
Noda's ecosystem enables quick deployment of payment solutions to match varying business needs. Merchants can choose between direct bank transfers that reduce transaction costs or implement no-code payment pages for rapid setup. The platform's modular approach allows businesses to build their payment stack by selecting and combining the specific tools they need.
| Company Name | Noda |
| Services Offered | Open banking payment and data services, card payments and payouts, no-code payment solutions |
| Fees (charged per transaction) | Highly customisable pricing plans tailored to business volume; reach out for more details |
| Benefits | Full-stack payment platform, coverage across 2000+ partner banks in 28 countries, easy integration and competitive pricing |
| Downsides | Limited integration with offline payment systems |
| Industries | SaaS, marketplaces, travel & tourism, e-commerce, startups, retail, iGaming and more |
| Supported Payment Methods | Pay-by-bank, cards, payment links, QR codes, invoices, local payment methods |
Learn More About Open Banking with Noda
Adyen
Adyen, based in the Netherlands, serves a diverse client base. It focuses on integrating online and in-person payment solutions. While it excels at offering omnichannel payments, its online payment solutions are part of a broader suite that includes POS systems and risk management. Adyen is ideal for businesses requiring a blend of physical and digital payment systems. However, its fee structure, application process and setup may present barriers for companies seeking a more cost-effective online payment system.
| Company Name | Adyen |
| Services Offered | Online payments, in-person payments, payment links, loyalty programmes, omnichannel payments, card issuing, POS system, risk management and global payouts |
| Fees (charged per transaction) | - General transaction fee: £0.11 + payment method-specific fees - Card transactions: £0.11 + interchange fees + 0.60% - BNPL: from 2.90% to 4.99% + £0.20 (depending on service and payer region) - Pay-by-bank: £0.11 + £0.50 - Direct Debit: €0.11 + £0.55 |
| Benefits | End-to-end financial solutions, supports payments in 30 currencies, versatile payment options including card issuing and global payouts |
| Downsides | Complex application process and high transaction fees |
| Industries | Digital businesses, mobility, retail, hospitality, subscription, food & beverage and marketplaces |
| Supported Payment Methods | QR codes, credit and debit cards, local payment methods, BNPL, pay-by-bank |
PayPal
Founded in 1999 and based in San Jose, California, PayPal is a widely known online payment service among customers in the UK. Despite its popularity and the convenience of no-code payment pages, PayPal's fees can be steep, including transaction charges, monthly services and international payments. However, it remains a good choice for businesses looking for a payment system that customers are already familiar with, and that is widely accepted.
| Company Name | PayPal |
| Services Offered | Online payments, instalment payment plans, POS system, invoicing, payment links and risk management |
| Fees (charged per transaction) | - Card payments 1.2% to 3.5%+ £0.30 + interchange fees - QR Code 2% + £0.05 - Alternative Payment Methods (APMs) 1.2% + £0.30 |
| Benefits | No-code payment pages, virtual terminal, widely accepted |
| Downsides | High transaction fees, extra fees for additional features, £20 monthly fees to receive online payments, currency conversion fees |
| Industries | Insurance, grocery & food delivery, utilities, retail, travel, charities and more |
| Supported Payment Methods | Digital wallets, credit and debit cards, BNPL, local payment methods and QR codes (availability varies by region and eligibility criteria) |
Square
Square primarily facilitates card-based transactions for both online and in-person payments. While it supports other payment methods suited to small and medium-sized businesses, it mainly optimises its services for card payments, including offering different types of POS terminals. Square provides some basic services for free but it exclusively processes payments in British pounds, which may pose drawbacks for international transactions due to currency exchange fees.
| Company Name | Square |
| Services Offered | In-store payments, subscription management, online payments, omnichannel tools, payment links |
| Fees (charged per transaction) | Card-present payment 1.75% + interchange fees Card-not present payments 1.4% + + £0.25 (UK cards) and 2.5% + £0.25 (non-UK cards) + interchange fees Card on file transactions 2.5% |
| Benefits | No monthly fees for basic services, customer loyalty programmes |
| Downsides | Geographic limitation, only accepts payment in GBP, monthly fees for in-person payments |
| Industries | Services, retail, beauty, food & beverage, fitness, healthcare and more |
| Supported Payment Methods | Credit and debit cards, digital wallets, BNPL, local payment methods, pay-by-bank |
Key Takeaways to Help You Decide
Noda Advantages:
After examining the UK's major payment providers, it's clear that different solutions serve different business needs. While established providers focus primarily on card processing, Noda takes a different approach by offering a complete payment service marketplace based around open banking infrastructure. Here's what sets Noda apart:
- Quick Integration Options: Noda offers multiple ways to start accepting payments, from ready-to-use payment links and no-code pages to full API integration. Once their account is verified, merchants can begin processing transactions through instant bank transfers, cards or digital wallets.
- Payment Method Optimisation: Noda offers card processing and instant bank transfers with customisable pricing plans. Smart payment routing helps reduce transaction costs while maintaining high acceptance rates.
- Data-Driven Insights: Noda combines payment processing with customer data tools, including spend pattern analysis, customer segmentation and verification services. This unified approach helps merchants make informed business decisions while streamlining customer onboarding.
- Flexible Implementation: From no-code payment pages for quick startup to full API integration for enterprise needs, Noda lets merchants build their custom payment stack by selecting and combining specific tools. This modular approach supports business growth without requiring major system changes.
How Noda Compares:
- While Adyen and Square excel in omnichannel retail, Noda specialises in digital commerce solutions.
- Unlike card-focused providers, Noda's takes an open banking-first approach while supporting multiple payment methods and offering integrated data services.
- Unlike traditional payment providers, Noda offers flexible pricing and modular implementation options.
Why Noda?
Whether you're a UK business expanding internationally or a global merchant entering the British market, Noda's payment marketplace serves businesses across 28 countries. Our platform combines multiple payment methods with flexible pricing and quick integration to support your growth. Contact our team to discuss your specific requirements.
