How to accept payments online

The exponential growth of digital payments and e-commerce in the UK has made it essential for businesses to choose fast, reliable, and convenient digital solutions for processing payments.

This in-depth guide offers a comprehensive overview of various methods, technologies, and leading payment processors in the UK for accepting online payments.

Popular payment methods

QR Pay

With QR pay you can accept payments via contactless transactions by displaying a QR code that your customers scan with their smartphones, enter the payment amount, and confirm the transaction. QR code payments eliminate the need for cash or cards and deliver a fast and secure payment experience to the customer.

Payment links

Payment links, also known as Pay by Link, have become a popular payment method in the UK because they allow merchants to accept payments online via a secure payment link which can be shared with customers via email, SMS, or social media. This method also enhances customer convenience, supports remote or contactless payments and improves conversion rates.

Credit and debit cards

Credit and debit cards are one of the most widely used payment methods by customers who do not prefer to pay by cash. PISPs like PayPal, Stripe, and Square allow merchants to set up a card transaction facility and accept card payments in a few easy steps.

Digital wallets

Digital wallets are one of the fastest-growing payment methods for quick and secure electronic transactions that can be performed effortlessly from a mobile device.

They operate on cutting-edge technologies like Near Field Communication (NFC) to enable in-store and digital payment processing. Digital wallet payment options can be integrated with your point-of-sale and eCommerce sites. They store customer and merchant details in a secure, multi-layered environment, allowing users to make and accept online payments seamlessly via their mobile devices.

Popular digital wallets:

Apple Pay:

Apple Pay is known for its security features and convenience of use on Apple devices. It secures transactions with tokenisation and biometric authentication (such as Face ID or Touch ID).

How can I integrate Apple Pay into my website?

To integrate Apple Pay into your website, follow these steps:

●     Check Compatibility: Confirm your website has an active SSL certificate and supports the Payment Request API.

●     Enrol in the Apple Developer Program to access integration resources.

●     Set up Apple Pay in your developer account: Set up a Merchant ID and enable Apple Pay in your account.

●     Integrate Apple Pay on Your Website: Add the Apple Pay button using the Apple Pay JavaScript API and you are set to accept payments online.

●     Test your integration thoroughly under all scenarios for a smooth experience for a user while paying.

 How do I request payments using Apple Pay?

Apple Pay allows one to accept payments using the iMessage app.

●     Step 1: Initiate a conversation by choosing the one from whom you want payment from the Messages program.

●     Step 2: Choose the Apple Pay icon seen in the app drawer under the text field.

●     Step 3: Specify the amount. You can utilise the plus and minus buttons or the keypad to input the desired amount.

●     Step 4: To initiate the payment request, please select "Request."

The recipient will obtain the request in their Messages application and may finalise the payment via Apple Pay.

Google Pay:

It’s the popular choice among Android users. GPay, as it’s commonly known, interfaces with a variety of Google services and provides a consistent payment experience across devices and platforms.

How do I send a payment request in Google Pay?

Open the Google Pay app, click on "Pay," and fill out a payment request. Enter the name of the person or enter the person's phone number or email. Add a quantity and optional explanation for requesting a payment. Then tap "Request" to solicit the payment. The payee will receive a notification and be able to make the payment directly from the Google Pay app. This is a simple procedure to accept payments via Google Pay.

Samsung Pay:

Samsung Pay uses both NFC and MST (Magnetic Secure Transmission) technologies, allowing it to work with a wider range of payment terminals.

Pay by bank app

Open banking-powered pay by bank app is another excellent method for accepting online payments. Customers can directly transfer funds from their bank account to your company accounts, bypassing the need for any intermediaries such as credit or debit cards. This mitigates the risk of data infringement and facilitates instant payments.

Tap to Pay on iPhone

With Tap to Pay on iPhone, the phone becomes a contactless payment terminal allowing you to accept payments without hardware. This feature lets you accept contactless credit and debit card payments and digital wallet payments on your iPhones. This eliminates POS requirements and simplifies in-person transactions, particularly for mobility vendors and smaller establishments.

Bank transfers

A bank transfer is a safe method of transferring funds from one bank account to another, either within the same bank or between two different banks.

Traditional bank transfers, such as the BACS or the CHAPS, are still popular ways to accept payments online. Their robust security measures make them a trustworthy choice for high-value transactions.

Buy now, pay later (BNPL)

This innovative method allows customers to buy now and pay later in instalments. Players like Klarna and Afterpay have added to its growing acceptance, particularly among the younger generation.

Cryptocurrencies

Unlike fiat currency, cryptocurrencies are only available in the digital or virtual space. Powered by blockchain technology, cryptocurrencies operate on decentralised networks and utilise cryptography to ensure secure transactions, including peer-to-peer token transfers. Despite stringent regulations, cryptocurrencies like Bitcoin and Ethereum are gaining momentum as a new-age payment method. A growing number of merchants in the United Kingdom have now started to accept online payments via cryptocurrencies.

Payment processing technologies

Point-of-sale (POS)

POS systems are integrated platforms comprising hardware, software and payment services that enable you to accept payments for both online and in-person sales. They further assist in inventory management, sales tracking, and consumer data analytics.

For in-person transactions, Square, SumUp, and others provide integrated hardware and software solutions for hassle-free POS transactions, making them a popular POS for retail. Wonderful offers a mobile POS with its smartphone POS app, "One".

Payment gateways

These are technology solutions that facilitate secure payment processing for e-commerce merchants, retailers, and physical stores. They integrate with e-commerce sites, mobile applications and point-of-sale, allowing businesses to accept online payments through various methods with ease.

Payment gateway providers such as Wonderful, PayPal, Venmo, and Revolut enable merchants to accept payments for both online and in-person sales in real-time.

How can you accept payments on your website?

Before exploring the integration process in detail, let’s take a quick look at the various options available for accepting payments on your website.

●     eCommerce platforms: These are software solutions that enable merchants to create, manage, and operate online stores. They offer various payment integration options, allowing merchants to choose the one that best suits their needs. Prominent e-commerce platforms in this field include Woo, Shopify, and Magento.

●     Payment gateways: Both e-commerce and brick-and-mortar businesses use these technology solutions to manage digital transactions. They integrate with the point-of-sale and facilitate payments by securely transmitting encrypted transaction data to the payment processor or acquiring bank, then relaying the authorisation response to the merchant. Popular examples include Worldpay, Square, PayPal, and Stripe.

●     Merchant accounts: Specifically designed for businesses, merchant accounts are bank accounts that enable the acceptance of credit and debit card payments, along with other payment methods. They serve as a bridge between your business bank account and the customer’s account, facilitating the secure processing of transactions. However, if your payment processor includes a built-in merchant account, a separate one may not be necessary. We will explore all options in detail as we proceed.

Choosing a payment gateway

Let's look at some key considerations that will guide you in choosing the right option for your venture:

●     Security: If you are taking payments via card, confirm that the gateway adheres to PCI DSS standards and provides encryption and fraud detection.

●     Fees: Evaluate transaction fees, monthly fees, and any additional expenses. Most payment gateways charge a per-transaction fee in pence, in addition to a percentage of the sales value to process payments. In contrast, Wonderful offers a cost-effective flat-fee model. Consider the service benefits alongside the commercial impact when making a comparison.

●     Integration: Determine whether the gateway integrates seamlessly with your eCommerce site. Stripe is renowned for its effortless integration with a diverse array of applications.

●     User experience: To prevent cart abandonment, the checkout procedure should be simple and seamless.

Setting up an account

Once you have made your choice, move on to the setup process. Typically, this includes sharing relevant company information, completing identity verification, and linking your merchant account.

●     Registration: The initial step is to register for an account on the website of the payment gateway. Fill out the required fields and submit your details.

●     Verification: To ensure your identity and the integrity of your firm, you must submit the required documents for verification, such as certificates of registration and tax identification.

●     Linking your bank account: To enable fund transfers, you must first link your bank account with the gateway. To do this, simply provide your bank account data.

●     Personalise: Make the payment UI seem like your brand to make it more user-friendly.

Integrating payments

Integrating payment functionality into your eCommerce site or mobile application is essential to accept online payments. Most gateways offer seamless integration through a customisable Application Programming Interface (API) or easy-to-integrate plugins. For example, if you are utilising WooCommerce or Shopify, you can simply install the plugin and update your payment credentials in the configuration settings. Refer to the official documentation or the Software Development Kits (SDKs) provided by your payment processor for guidance. PISPs like Wonderful come with robust support centres for further assistance.

Test-run the payment mechanism

To ensure that your customers do not encounter any glitches, it’s important to do test transactions to check if everything is in order. Any errors should be rectified before going live with your payment solution. Follow the simple steps below, and you’ll be good to go:

●     Transaction Flow: Ensure that transactions are executed without any unintended bottlenecks.

●     Security: Sensitive information should have end-to-end encryption and not be exposed to probable cyber theft.

●     User experience: To guarantee that the consumer journey is user-friendly and intuitive, it is necessary to simulate it.

Launching and monitoring

Following the above steps, you can safely launch your eCommerce site. However, you must review the performance of your payment gateway to ensure that probable technical issues are rectified with minimum downtime. Continuously monitor transactions for abnormalities and be informed about any new features or upgrades from your payment processor. Review your transaction statistics on a regular basis to discover trends or potential problems, such as unusual chargeback rates or fraudulent efforts.

The above procedure will enable you to accept payments online through various payment modes, such as credit cards, Pay by Bank, traditional bank transfers like BACS and CHAPS, and BNPL (buy now, pay later).

How can you accept online payments without a merchant account?

Payment Initiation Service Providers (PISPs) such as PayPal, Worldpay, and Stripe enable merchants to accept card payments and other payment methods without the need for a traditional merchant account. They aggregate transactions, streamlining the payment process and removing the necessity for individual merchant accounts

The benefits and drawbacks

Benefits:

●     Easier Setup: The process of setting up is typically more expedient and less complicated.

●     Reduced initial investment: There is no requirement for a dedicated merchant account, which can incur the price of setup as well as monthly fees. This results in lower upfront expenditures.

●     Streamlined management: The PISP is responsible for a significant portion of the backend payment processing and compliance, which simplifies management.

Drawbacks:

●     Long-run cost implications: When compared to regular merchant accounts, aggregation accounts typically come with higher transaction fees. This is because aggregation accounts are used to process more transactions.

●     Less Control: It is possible that you will have less control and flexibility over the process of making payments.

●     Probable delays in fund settlement: Third-party PISPs can hold funds for longer periods, particularly for new accounts or transactions that involve a high level of risk.

Choosing a PISP

Selecting a reliable Payment Initiation Service Provider (PISP) is essential for merchants aiming to accept online payments efficiently. By acting as intermediaries between businesses, banks, and financial institutions, PISPs enable seamless acceptance of various payment methods, including credit cards, digital wallets, and bank transfers. They also offer essential features such as transaction routing, settlement management, fraud detection, analytics, and recurring billing, helping simplify and streamline operations.

Key considerations should include transaction fees, supported payment methods, ease of integration, and the quality of customer support.

6 best PISPs

Let's look at some of the leading FCA-authorised Payment Initiation Service Providers (PISPs) that enable companies to accept payments online. These evaluations can help you in making the right choice for your business.

Wonderful

Wonderful is an emerging name in this industry. Their revolutionary payment systems for small businesses powered by open banking integrate seamlessly with e-commerce platforms, point-of-sale, accounting software, and other business tools to streamline transactions and enhance efficiency. This ensures a smooth and effortless checkout experience. Some of their key features include:

●     One App: This is one of the most budget-friendly point-of-sale (POS) applications. Merchants can accept payments online by generating tap-to-pay links and QR codes. It leverages the power of open banking to process transactions instantly over a safe network, and settle in real-time.

●     WooCommerce plugin: Wonderful’s WooCommerce payment plugin can be integrated with existing payment methods and offers a hassle-free checkout experience for your customers. Their ‘Plus’ plan comes at a remarkably affordable fee of £19.99 for 2000 monthly transactions. You only pay 1p per transaction for transactions outside your monthly bundle.

●     API integration: Wonderful's payment API (Application Programming Interface) is highly adaptable and developer-friendly. It facilitates integration with unique apps and offers robust support for personalised payment solutions.

Razorpay

Razorpay has gained worldwide popularity due to its extensive feature set, which includes recurring payments, subscription billing, and an intuitive dashboard. Their USPs include:

●     Enriched functionalities: Accommodates a variety of payment methods, such as digital wallets, net banking, UPI, and credit/debit cards.

●     Customisation: Provides APIs for customised payment solutions and integrations.

●     Analytical insights: Offers comprehensive reporting and analytics tools to monitor and enhance payment processes.

PayPal

PayPal is one of the most widely acclaimed PISPs to accept online payments. Their free-to-install plugin merges perfectly with most eCommerce sites and provides a robust security mechanism. The PayPal advantage includes:

●     Strong reputation: Recognised and trusted by millions of users across the globe.

●     Buyer protection: Provides robust consumer protection policies, which can boost consumers' confidence and improve revenue generation.

●     Adaptability: Allows merchants to accept payments online in a variety of ways, such as through bank transfers, rewards balances, and credit cards.

Stripe

Often a developer’s preferred choice, Stripe comes with a powerful payment API. Merchants with a global presence can benefit from their wide array of payment methods and currency acceptance. The following are the stand-out features of Stripe:

●     Customisability: Highly adaptable, with full API back-end support.

●     Worldwide reach: It's great for global enterprises because it supports many currencies and payment methods.

●     Additional features: Includes features to help with billing, subscription administration, and preventing fraud.

Square

Ideally suited for merchants searching for an all-in-one solution to accept payments online, Square provides a comprehensive POS solution with easy navigation that augments the user experience (UX). The key advantages are:

●     Easy to install: Small enterprises will find the setup and operation straightforward.

●     Unified Integration: Provides a seamless solution for both digital and in-person transactions.

●     Additional services: Provides features such as inventory tracking, employee administration, and invoicing.

myPOS: Accept instant payments

An overview of myPOS

If you need a comprehensive solution that operates seamlessly across both online and in-person platforms, myPOS is an excellent choice. Its feature-rich offer includes instant payments, multi-currency accounts, a reasonable fee structure and a wide range of payment methods. One of the primary benefits of myPOS for establishments with brick-and-mortar outlets is that it also supports in-person transactions.

Setting up your myPOS payment plugin

●     Register your business: Register on the myPOS website and furnish your company information.

●     Select payment devices: myPOS provides a variety of payment devices, including POS terminals and card readers, for in-person transactions.

●    Payment Integration: Utilise the integration tools provided by myPOS to incorporate payment functionality into your eCommerce site. This may encompass the integration of APIs for custom sites or plugins for prominent eCommerce platforms.

●     Accept payments instantly: myPOS ensures that funds are accessible promptly upon the completion of a transaction.

Conclusion

By understanding the importance and implementation of robust payment solutions, your establishment can provide excellent payment experiences, achieve considerable savings on processing fees, and optimise revenue generation.

Select a suitable PISP that complies with regulatory mandates and provides a seamless checkout experience across various channels. Explore options like Wonderful, Stripe, Square, and PayPal to assess the best fit for your business and make an informed decision.

FAQs

When starting a new business, how do I accept online payments?

Setup a payment gateway, create a merchant account, integrate a variety of payment methods, such as digital wallets and credit and debit cards, and guarantee secure transactions through the usage of SSL certificates and PCI compliance.

What is the safest way to accept payments online?

Trusted PISP's like Wonderful, PayPal, Stripe, etc. are compliant and use modern technologies to provide robust data protection. You should verify their encryption mechanisms, fraud detection capabilities, and regulatory compliance before engaging with them.

How can I accept payments using QR codes?

Use PayPal or Wonderful's QR Pay to accept payments. After creating a business account, create a QR code on the website. Display the code visibly at your POS or on your invoices. Customers will scan the code using the camera on their smartphone or with an app. The customer then types in the amount to pay and pays via his mobile payment application.

How do I link my bank account with online payments?

To connect your bank account for online payments, access your payment platform’s settings, choose “Add Bank Account,” and input your bank information. Some platforms provide instant verification through online banking, whereas others rely on small test deposits for confirmation. Once linked, you can easily make payments, withdraw funds, and manage transactions seamlessly.

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