Compare the top 5 eCommerce payment systems and solutions in UK | 2024

What is an eCommerce payment system?

eCommerce payment systems help online businesses accept payments.

A whopping 2.14 billion shoppers are now buying online – it doesn’t matter if you’re a growing global eCommerce brand or an online marketplace, you need reliable, efficient eCommerce payment software to stay in business. 

eCommerce payment providers sell a type of financial software that acts as a secure bridge between a customer buying a product or service and the funds being safely transferred to your bank (the merchant bank).

Let’s say you’re an online business owner selling software; when a customer purchases a subscription, your eCommerce payment software will encrypt their financial data and send it to the relevant payment processor to be authenticated and approved. If successful, the customer’s funds will then be transferred to your business account.

In this way, eCommerce payment service providers act like a payment gateway; but most modern suppliers offer much more. Additional features like funds management, supplier payments and detailed analytics are now commonplace.

The best eCommerce payment companies save online businesses time and money by boosting checkout conversions, reducing the risk of fraud and automating payments.

eCommerce payment systems typically includes features such as:

• Secure payments

• Fraud prevention

• PCI compliance

• Business accounts

• Automated payment workflows

• Reporting and analytics

• Integration with other business systems.

A strong payments provider should act as your financial partner. It won’t just keep you in business; it’ll help you scale while protecting your bottom line.

In this article, we’re going to explore 5 of the top eCommerce payment solutions and providers to help you decide which is best suited to your business. 

How does an eCommerce payment system work?

eCommerce payment systems work by taking money from the customer's account and placing it in the merchant account on behalf of the customer. If you’re selling online, eCommerce payment processing systems are an essential part of your checkout process.

But they’re also a useful tool for wider financial management and operational streamlining. eCommerce payment systems integrate several other functionalities that can help you slash admin hours, save on transaction and currency fees and manage your funds efficiently.

Here’s a breakdown of how eCommerce payment processing systems typically work:

• They process transactions safely: the core function of eCommerce payment software is to facilitate seamless and secure financial transactions. As customers purchase online, their payment information is encrypted and sent to the merchant's bank (acquiring bank), and in turn the issuing bank, for verification. After successful authorisation, the eCommerce payment system communicates confirmation to both the merchant and the customer.

• They help with fund management: beyond transactions, providers can help manage your earnings. Online businesses use this kind of software to access global accounts that allow them to hold multiple currencies and convert money at competitive rates, streamlining their financial infrastructure in a cost-effective way.

• They simplify supplier payments: automatic supplier payments is another feature offered by providers like Airwallex. Businesses can streamline outbound payments by setting up scheduled payments for recurring expenses and executing cross-border transactions with ease. This ensures timely supplier payments and can remove friction in procurement processes.

• They protect your business and your customers from fraud: good eCommerce payment providers have stringent security protocols, safeguarding sensitive customer information and ensuring all transactions comply with global standards like PCI DSS.

• They integrate with existing business systems: most suppliers integrate with major accounting softwares, eCommerce and CRM platforms, improving your operational efficiency by minimising manual administration and the potential for errors.

• They help you stay in control of your financial health: built-in reporting tools and analytics can offer critical insights into sales trends and customer behaviour, helping businesses make big decisions and refine their growth strategy.

• They help you grow across borders: some eCommerce payments providers like Airwallex help businesses expand internationally by supporting multi-currency transactions and simplifying international payments.

The top 5 eCommerce payment systems and solutions in 2024

In no particular order:

• Airwallex: Provides a payment gateway, processor and business accounts all in one platform. Airwallex is designed for eCommerce businesses who operate in multiple markets and currencies.

• AmazonPay: allows customers to use their Amazon accounts to make secure and convenient online payments.

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

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

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

Top features to look for in an eCommerce payment system

Navigating the world of eCommerce payment systems can be daunting. Here's a list of essential features to help you make an informed decision, with a focus on the UK market:

• Security: Your payment system should be PCI DSS compliant and have robust fraud prevention measures. For the best security, look for advanced encryption, SOC1, SOC2, and PSD2 compliance. Also, consider systems that support Strong Customer Authentication (SCA) for an added layer of protection.

• Cost: Look for platforms with clear fees and flexible terms. Be sure to include monthly fees, foreign transaction fees, and currency conversion charges. If you’re in the UK, you can save on fees by choosing a platform that supports local GBP payments.

• Integration capabilities: Select a system that integrates seamlessly with your existing accounting and eCommerce platforms. This will help you reconcile, checkout and forecast. Popular UK accounting platforms include Xero, QuickBooks and Sage.

• Global reach: Select a payment system that supports international transactions without steep FX or conversion charges. Extending local payment methods—like iDEAL in the Netherlands, Giropay in Germany, and Sofort across multiple European nations—will broaden your market appeal.

• Scalability: Opt for a solution that can seamlessly cope with surges in transactions and the expansion into new territories. This strategic move diminishes the need to switch systems as your business flourishes across the UK and beyond.

Compare the top eCommerce payment systems and solutions

In alphabetical order.

eCommerce payment processing systems are great for modern eCommerce businesses to accept payments from customers.

Beyond providing secure online transactions, modern payment gateway providers and eCommerce payment providers are becoming increasing comprehensive and are evolving into more holistic payment providers and consolidating the payment processing chain.

What questions should you ask when selecting an eCommerce processing system?

The safety and efficiency of managing customer payments is the most important question, but it’s also worth checking compliance, conversion fees, scalability, integration capability and much more.

Here’s a list of questions to ask your potential provider that will help you make an informed decision: 

1. What payment methods do you support? Understand the range of payment methods the provider supports, including credit/debit cards, digital wallets, bank transfers and any global region-specific options. Offering your customers local payment methods can boost checkout conversions.

2. What are your security measures and compliance standards? Ask about your potential new provider’s security protocols, such as how they conduct KYC/AML checks, their encryption and fraud detection capabilities, and ensure they comply with industry standards like PCI DSS.

3. Do you offer global payment support? If you have customers around the world, or you’re planning to launch in new markets soon, ask about multi-currency support and international payment capabilities. Avoid hidden fees by understanding exactly how the provider handles currency conversions and cross-border fees.

4. What are the fees and pricing structure? Find out all the potential costs associated with the service, including transaction fees, monthly fees, setup costs, conversion fees and any hidden charges. This will help your financial planning.

5. How easy is the integration process? Most eCommerce payment services integrate with major accounting, CRM and eCommerce platforms. Make sure you choose a provider that works with your existing software and assess the ease of integrating (no or low code plugin options are the most popular).

6. What level of customer support do you offer? Find out what kind of support is available to you if something goes wrong – ask about support hours, the type of support (email, phone, chatbot) and response times.

7. How do you handle refunds and chargebacks? Understanding the provider’s process for dealing with chargebacks and whether they offer any support or protection against could save you money in the future.

8. How do you support business growth? It’s worth discussing scalability options with your new provider because you don’t want to waste time switching services every couple of years. Your chosen solution should be able to handle increased transaction volumes and multiple overseas markets without significant disruptions.

9. What analytics and reporting tools are available? Detailed transaction data and analytics can streamline reconciliation and accounting processes and give you valuable insights into your financial performance. Ask what reports are available and how easy they are to generate.

Why choose Airwallex as an eCommerce payments solution?

Hundreds of thousands of online companies partner with Airwallex to simplify their payments and financial operations, from fast-growing eCommerce startups to global online marketplaces.

We’re best known for our global reach. If you’re looking for an eCommerce payments service provider that makes selling across borders easy, safe and cost-effective, Airwallex is a smart choice. We can help you:

• Go global: tap into new markets and collect payments in 170+ currencies with local payment methods that cater to your customers’ preferences.

• Save money: protect your bottom line with low transaction and currency conversions fees, plus market-leading FX rates.

• Collect directly with eComm platforms: get local accounts for overseas customers with quick, simple integration with platforms like Klarna, PayPal, Shopify, Stripe, eBay and more.

• Simplify supplier payments: pay your suppliers on time with less hassle. Automated payments can help you save hours and strengthen relationships.

• Gain visibility over your finances: get a clear, real-time overview of your cash flow, manage multiple currencies effortlessly and move money between entities with just a few clicks.

• Scale quickly: no need to switch providers – Airwallex grows with you. It’s built to support global businesses of all sizes. 

Airwallex supports ambitious and multi-entity eCommerce businesses of all shapes and sizes automate payment collection, slash financial admin hours and move money across borders efficiently.

FAQs about eCommerce payment systems 

What is eCommerce processing system?

An eCommerce processing system is a kind of financial system that connects an online store to payment processor systems. It helps online businesses accept payments by securely transferring customers’ funds to the merchant’s bank.

What important factors to choose when selecting an eCommerce payment processing system?

The key factors to consider are security and compliance, fees and costs, integration capabilities, scalability, international payments support, customer service and which payment methods are supported.

How much does it cost to onboard an eCommerce payment service?

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

How safe are eCommerce payment processing services?

Most major suppliers are considered safe. Look for fraud prevention systems, end-to-end data encryption and compliance with PCI DSS (the global security standard for organisations that store sensitive data).

Sources & references

² https://pay.amazon.eu/help/5BDCWHCUC27485L

³ https://pay.amazon.co.uk/help/SKX7JCY3G3SP73U

⁴https://gocardless.com/blog/how-much-do-international-payments-really-cost/

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

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

⁷ https://stripe.com/payments/payment-methods

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

⁹ https://wise.com/us/blog/stripe-international

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 Processing Services & Companies in the UK

• Top Online Payment Systems & Providers in the UK

• Top Digital Payment systems & Solutions in the UK