Compare the top 7 payment gateway providers & services in UK 2024

What is a payment gateway provider or service?

A payment gateway provider helps businesses accept money from customers who pay using a credit card or another method of electronic payment.

Although the term is mostly used to describe eCommerce payments like accepting payment for a pair of headphones online (i.e. online checkouts), payment gateways can also facilitate in-person purchases or Point of Sale (PoS).

Payment gateway providers sell software applications (these are the payment gateway) that encrypt sensitive financial information passing between the customer and the payment processor. This means details like credit card details are securely transmitted during payment.

No matter the size of your business, you’ll need a reliable, secure, efficient payment gateway to get paid. The payment gateway market has exploded in recent years as society becomes increasingly cashless – it’s expected to grow by a whopping $5.54 billion in 2024 alone.

Payment gateway providers typically offer the following features:

• Encryption and security

• Payment processing

• Fraud detection and prevention

• Integration capabilities

• Reporting and analytics

As a business owner, having an efficient, reliable payment gateway provider helps you create a seamless, secure checkout experience by offering multiple payment methods and currencies, reduced fraud risk and by having access to valuable customer behaviour data. 

With so many options available, it can be hard to know which payment gateway software is best for your business. In this article, we’re going to explore 8 of the top payment gateway providers to help you decide.

How does a payment gateway provider work?

Payment gateway providers are an essential part of the payment process. They make sure your customers’ money gets safely from their credit, debit card or digital wallet to your bank.

How? The payment gateway software they sell facilitates secure and efficient electronic transactions of financial information through encryption. It manages the flow of protected information to the entities responsible for authorising payment. If successful, funds then move from customer to merchant.

Here’s a breakdown of how payment gateway systems typically process an online transaction. Steps 1 to 7 usually occur in seconds.

1. Order placement: the journey begins when a customer decides to make a purchase and clicks ‘buy’ on a merchant's website

2. Onsite/offsite transaction: depending on the merchant’s gateway, the transaction is either processed directly on their website (onsite), or the customer is redirected to the payment gateway’s platform to complete the payment (offsite). The latter is usually less desirable as it detracts from the brand experience and can affect conversion

3. Encryption of information: the customer's payment details are encrypted to protect the data during its journey across the internet

4. Transmission to the acquiring bank: the encrypted information is sent to the merchant's bank, also known as the acquiring bank or the acquirer. The acquiring bank forwards the transaction details to the card network or issuing bank for verification

5. Authorisation request: after receiving the transaction details, the issuing bank conducts several checks to verify the validity of the card and make sure sufficient funds are available

6. Approval or decline: the issuing bank approves or declines the transaction based on these checks, sending the decision back through the payment gateway

7. Finalising the sale: with approval received, the merchant finalises the sale. The payment gateway communicates a confirmation to both the merchant and the customer

8. Settlement of funds: funds are transferred from the customer's bank to the merchant's account. Depending on the size of the transaction and payment gateway solution, this can be instant or take a few days

The top 7 payment gateway service providers in 2024

1. 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.

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

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

4. Braintree: A subsidiary of PayPal, Braintree offers a payment gateway for businesses, supporting mobile and web payments and providing tools like fraud detection and data encryption.

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

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

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

Top features to look for in a payment gateway service provider

• Processing location: some gateways process transactions on your website, while others redirect customers to a new page to pay. For the smoothest checkout experience, look for a gateway with onsite transactions.

• Security: your gateway should be PCI DSS compliant and use the latest end-to-end encryption technology and fraud prevention tools to protect your data.

• Integrations: your provider should integrate easily (no code required) with your other business systems like your accounting software or eCommerce platform.

• Cost: pricing varies between payment gateway companies. Make sure you understand all fees upfront, from free trials to chargebacks and international transactions.

• Reporting: look for software that offers insights into transaction data and customer behaviour – these can help you optimise your sales strategy and forecasts.

• Breadth of service: While many traditional providers only offer a payment gateway service, new entrants are able to offer a payment gateway alongside a rich array of useful financial tools. This helps reduce tool sprawl and, more importantly, centralises the management of your company's funds.

Compare the top payment gateway providers

Many payment services play more than one role in the payment process

Payment gateways are essential for modern businesses to accept payments from customers.

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

Why choose Airwallex as a payment gateway solution?

Airwallex is more than a payment gateway; it helps thousands of businesses simplify their financial operations and grow without limits.

Our platform provides an end-to-end payment solution allowing you to collect, hold, manage and spend on the same platform.

As a payment gateway provider, payment processor and acquirer we stand out for global reach, competitive pricing, advanced security, seamless integration with tools like Shopify and WooCommerce and detailed reporting analytics.

If you’re looking for a trusted, lightning-fast way to accept payments online, with Airwallex you can: 

• Securely accept local and global payments from customers (no coding required)

• Choose from 160+ payment methods

• Protect yourself against fraud

• Integrate with eCommerce platforms in minutes

• Save on costly domestic and foreign processing fees

• Eliminate unnecessary FX conversion fees

• Boost checkout conversion rates

• Streamline your end-to-end cash management

• Manage your finances with one easy-to-use dashboard.

 Plus, Airwallex offers a range of additional features that help boost your bottom line. You can get more control over your expenses, move money across borders cost-efficiently, automate bill paying, issue multi-currency employee cards and get real-time visibility over your cash flow with our market-leading technology.

Our payment solutions include an all-in-one Business Account with seamless integrations, powerful and flexible APIs to programmatically manage your money, and technology to build your own global financial products.

FAQs about payment gateway providers 

What is a payment gateway provider?

A payment gateway provider facilitates safe and secure online transactions. It encrypts and transmits payment data from a customer to a merchant and their associated bank. 

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

It’s worth considering security credentials, supported payment methods, fees, currency support, integration with your business systems, transaction success rates, scalability and the quality of customer support available. 

How much does it cost to onboard a payment gateway solution?

Pricing varies widely between providers. Factors like setup fees, monthly subscription charges, transaction and currency conversion fees will impact cost. 

How safe are payment gateway services?

Most payment gateway services are safe. The best use advanced end-to-end encryption tools and are compliant with security standards like PCI DSS to prevent unauthorised access or fraud. 

Sources & references

² https://www.adyen.com/en_GB/pricing

³ https://www.braintreepayments.com/gb/braintree-pricing

⁴ https://wise.com/gb/blog/braintree-vs-stripe-uk

⁵https://gocardless.com/blog/how-much-do-international-payments-really-cost

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

⁷ https://www.revolut.com/business/business-account-plans/

⁸ https://www.shopify.com/uk/pricing

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 eCommerce Payment Systems & Solutions in the UK

• Top Online Payment Systems & Providers in the UK

• Top Digital Payment systems & Solutions in the UK