Compare the top 7 digital payment systems & solutions in UK in 2024

What is a digital payment system?

Digital payment systems help businesses manage their money online.

This kind of financial software can save you time and money by helping you receive global online payments for goods or services and simplifying your financial operations.

A good digital payment system should give you one centralised dashboard for all your payment needs. By offering payment services, multi-currency accounts, global transfers, corporate cards, expense management and software integrations they can streamline your finances and fuel your growth.

The total transaction value in the digital payments market is expected to skyrocket to $513.10bn¹. Meanwhile, businesses continue to face a competitive macroeconomic environment – whether you’re a digital marketing agency or eCommerce aggregator it’s more important than ever before to find an efficient, reliable payments partner.

If you’re looking to grow globally, you may be thinking about streamlining your operations and reducing overheads. An all-in-one digital payment solution could help.

These kinds of online platforms typically include the following features:

• Secure payments

• Global business accounts

• Automated payment workflows

• Expense management

• Reporting and analytics

• Integration with other business systems.

With so many providers available, it can be hard to know which suits your business needs best. In this article, we’re going to explore 7 of the most popular digital payment solutions to help you decide.

How do digital payment systems work?

Digital payment systems work by providing a convenient and secure way to make payments online. They typically involve a mobile app or online platform that allows users to link their bank accounts or credit cards.

When making a payment, the user enters the necessary details, such as the recipient's name or account number, and authorises the transaction. The funds are then transferred electronically from the user's account to the recipient's account. Digital payment systems often include features like contactless payments, QR code scanning, and peer-to-peer transfers, making it easy for users to manage their finances.

The payment process typically includes the following steps:

• Payment is initiated by the customer and financial details are entered on a website, mobile app or POS

• This financial information is encrypted by the digital payment system and securely transmitted to the payment processor via a payment gateway

• The payment processing part which verifies the transaction details with the customer’s bank (issuing bank) and the merchant’s bank (acquiring bank)

• The issuing bank authenticates and approves the transaction

• Funds are settled and move from the customer’s bank to the merchant’s bank.

The top digital payment solutions in 2024

• Airwallex: offers a financial platform that enables businesses to collect, hold, convert and spend money internationally.

• Stripe: offers a comprehensive suite of online payment processing and financial services for businesses.

• Worldpay: One of the global incumbents in payment processing technology and solutions, offering a wide range of merchant payment services.

• PayPal: A traditional payment gateway provider known for its wide acceptance, offering payment solutions for both personal and business needs.

• Adyen: Provides a payments platform to accept payments, with a strong focus on mobile payments and direct credit card acceptance.

• GoCardless: Specialises in direct debit payments, providing a simple and cost-effective way for businesses to accept recurring payments.

• Revolut: Offers a digital banking service that includes a payment gateway. May be more suited to the needs of micro-SMEs and startups.

Top features to look for in digital payment services

 It can feel overwhelming when you start comparing digital payment providers. To help, we’ve compiled a list of the most important features to look out for:

• Security: at the minimum, your provider should be PCI DSS compliant and have fraud prevention systems in place. For best-in-class, look for advanced encryption, SOC1, SOC2 and PSD2 compliance.

• Cost: find a platform that’s right for you by asking about fee structure and the length of contract. Don’t forget about monthly subscription fees, foreign transaction fees and currency conversion costs.

• Integration capabilities: it’ll make reconciliation, checkouts and forecasting easier and faster if your digital payment software integrates easily with your existing accounting and eCommerce platforms.

• Global reach: look for a provider that helps you accept global payments without paying unnecessarily high FX or conversion fees, and offers local payment methods to your customers.

• Scalability: look for a solution that can handle increased transaction volumes and multiple overseas markets without significant disruptions. This reduces the likelihood of you having to switch providers as you grow.

Compare the top digital payment systems in 2024

In alphabetical order.

What questions to ask when onboarding a digital payment solution?

Asking the right questions when selecting a new digital payment solution can make all the difference. You don’t want to end up with a platform you don’t like and waste time trying to exit a 12-month contract after a couple of months.

To help you make an informed decision, we’ve included a roundup of the key questions to ask your digital payment company when you’re in the onboarding phase:

• Tell me about your security protocols. How does the provider ensure the safety and security of transactions? Investigate their KYC/AML procedures, encryption standards and fraud detection capabilities. They should at least meet PCI DSS industry standards.

• Please explain your pricing structure. Ask about all potential fees, such as transaction, monthly, setup and conversion fees. This will help you avoid unexpected costs, particularly for international transactions.

• Do you support global payments? Beyond understanding the cost of accepting international payments, does the provider allow you to collect and hold multiple currencies? Or will you be forced to convert all payments? This can get expensive, fast.

• How many payment methods are available? Does the service support a variety of payment methods, including local and alternative options, as well as Visa, Mastercard and American Express credit and debit cards?

• What integrations do you offer? Ensure the provider offers integrations with your existing accounting, CRM and eCommerce platforms to streamline your operations.

• What kind of customer support available? Understand their customer service options, including response times and the availability of support channels like email, phone and chatbot.

• Can you support quick business growth? It costs time and money to switch services every couple of years. Check your new provider can help you as you scale with increased transaction volumes and the ability to operate in multiple overseas markets without significant disruptions.

• Tell me about your refunds and chargebacks policy. Ask how the digital payment system handles refunds and chargebacks – this can help protect your funds in the future.

• Do you offer analytics? Reporting capabilities are valuable as they can help you forecast and reconcile your books quicker. Ask what kind of data insights are available with the platform and how detailed they are.

• What is the customer experience like? Is the checkout functionality customisable? How does it integrate with your website/app and ensure a smooth transaction? This will help you understand how much the platform has considered user design. 

Why choose Airwallex as a digital payment solution?

Airwallex is a global financial platform that transforms how businesses move and manage money domestically and internationally.

As a digital payment system, it helps businesses build frictionless global checkouts instantly, issue payment links, offer 160+ local payment methods and settle like-for-like in 12 currencies.

Beyond transactions, Airwallex is also known for streamlined global funds management. With a Business Account you can issue multi-currency employee corporate cards and manage your expenses to track spending, simplify expense reimbursement processes, boost budget management and improve employee productivity. 

Airwallex is a smart choice if you’re looking to benefit from:

• Gold standard security: safeguard funds with best-in-class payment acceptance and fraud protection that’s PCI DSS compliant.

• Flexible payment options: offer your customers 160+ payment methods, with local options that cater to their preferences.

• Global reach: accept payments from 180+ countries and open bank accounts with local details in 22+ currencies.

• Competitive fees: maximise revenue with like-for-like currency settlement, market-leading FX rates and competitive transaction fees.

• Efficient funds management: get real-time visibility over cash flow, expenses and multi-entity accounts.

• Seamless integration: plugin seamlessly (no coding required) with platforms like Shopify, WooCommerce, Xero and NetSuite to reduce finance team admin hours.

FAQs about digital payment solutions

What is a digital payment system?

A digital payment system is a kind of software or digital tool that facilitates electronic payments and helps businesses manage their money. 

What important factors to choose when selecting a digital payment solution?

There are lots of factors worth considering, including security and compliance, fees and costs, integration with business tools, scalability and growth potential, and which payment methods are supported. 

How much does it cost to onboard a digital payment company?

Pricing varies between providers; some offer simple subscription plans, like Airwallex, while others operate on a per-transaction model. Don’t forget there are often hidden fees for international payments. 

How safe are digital payment services?

Secure digital payment services should include fraud prevention systems, end-to-end data encryption and be compliant with PCI DSS (the global security standard for organisations that store and process sensitive data).

Sources & references

¹ https://www.statista.com/outlook/dmo/fintech/digital-payments/united-kingdom

² https://www.adyen.com/global-payment-processing

³ https://www.adyen.com/en_GB/pricing

⁴https://gocardless.com/blog/how-much-do-international-payments-really-cost/#:~:text=For%20international%20payments%2C%20GoCardless%20will,customer%2C%20our%20fee%20is%20%24100.25

⁵ https://www.paypal.com/uk/enterprise/payment-methods

⁶ https://www.paypal.com/uk/webapps/mpp/merchant-fees

⁷ https://wise.com/us/blog/stripe-international

⁸ https://wise.com/us/blog/stripe-international

⁹ https://www.revolut.com/business/multi-currency-accounts/

¹⁰ https://www.revolut.com/business/business-account-plans/

¹¹https://www.worldpay.com/-/media/fisglobal/WorldPay/Docs/Solutions/Global-Acquiring-Brochure-New.pdf?sc_lang=en-AU

 Disclaimer:  We wrote this article in Q1 2024. The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. If you would like to request an update, feel free to contact us at [email protected].

Related articles about payment services and solutions:

• Top Payment Gateway Providers & Services in the UK

• Top Payment Processing Services & Companies in the UK

• Top eCommerce Payment Systems & Solutions in the UK

• Top Online Payment Systems & Providers in the UK