In the expanding payment gateway market, which are the best alternatives to Stripe?

As e-commerce expands in this digital-first economy, payment gateways gain momentum in driving operational efficiency and customer satisfaction. Stripe, with its strong API integration and flexibility, has become a global giant in the payment processing business. However, with the UK payment market size expected to expand from $490 billion in 2024 to more than $849 billion in 2029, other players are making their presence felt. Businesses are considering affordability, special features, and customer support, among other factors, while evaluating a Stripe alternative.

In this exploratory article, we take a look at alternatives to Stripe, with a focus on the UK market.

What is Stripe and how does it work?

Launched in 2010, Stripe has gained worldwide popularity as a versatile payment gateway that helps businesses of all sizes accept payments online. Its easy-to-integrate Application Programming Interface (API) has made Stripe a developers’ favourite.

Stripe enables businesses to accept digital wallet transactions, mobile payments, and credit and debit card payments. It is the obvious choice for businesses with a global consumer base, as it supports a diverse selection of payment methods and currencies. Stripe provides businesses with a comprehensive solution for online transactions, including invoicing, subscription administration, and fraud prevention.

But are there glitches in Stripe’s armoury that competitors are exploiting? Let’s explore…

What are some good Stripe alternatives?

As you search the market for alternatives to Stripe, you may be looking at more cost-effective options, a payment gateway with robust international customer support, or features that meet your specific requirements. Keeping these probable factors in mind, we have collated some of the strongest alternatives to Stripe. Here’s a list of some of the key competitors:

Wonderful

Wonderful, a UK-based payment provider, presents a compelling alternative to Stripe, particularly for businesses keen to capitalise on the power of open banking technology to make substantial savings on payment processing fees. It focuses on providing a wide array of instant payment and instant settlement options, including QR code payments and payment links, enabling swift and secure transactions without relying on conventional card networks. This lowers transaction costs and enhances transparency.

To give you an idea of their highly affordable cost structure, Wonderful’s basic plan starts at just £9.99 for 1,000 monthly transactions. Merchants also only pay 1p per transaction outside the bundle. Its emphasis on speed, security, and exceptional customer support makes Wonderful stand out as an appealing choice for small businesses in the UK looking for a Stripe alternative. An added feather on their cap is their tech-for-good heritage, which translates into free service for UK-registered charities.

PayPal

PayPal is the ‘big daddy’ of the payment processing market worldwide, boasting over 300 million customers. It has a simple user interface and accommodates many payment methods, including credit cards, bank transfers, and PayPal balances. The primary advantage of PayPal is its extensive global reach, rendering it an appealing choice for enterprises engaging with foreign clientele. Nonetheless, its transaction fees may be elevated in comparison to certain Stripe alternatives.

Square

Square is an excellent choice for small businesses that want a retail point-of-sale system in order to accept payments made online. Mobile point-of-sale (POS) and retail point-of-sale (POS) solutions are used by brick-and-mortar enterprises and small merchants. Additionally, Square adheres to a transparent pricing approach that does not include any hidden fees, which contributes to the company's trust. Therefore, it is a complete alternative to Stripe because it provides extensive billing and appointment scheduling capability.

Adyen

Adyen is a popular payment gateway, particularly among large enterprises, due to its extensive selection of payment methods and global reach. It provides an omnichannel payment solution that enables businesses to collect payments in-store and online. Adyen is an exceptional option for global eCommerce enterprises, as it supports more than 250 payment methods and 150 currencies. It may not be the most suitable choice for lesser merchants, as its fees are determined by the volume of business.

GoCardless

If recurring payments or direct bank transfers are important to your business, GoCardless is an excellent Stripe alternative. GoCardless specialises in Direct Debit transactions, which enable companies to get regular payments from users' bank accounts. People in the UK and Europe, where bank transfers are frequent, have shown an increasing preference for GoCardless. With lower transaction fees compared to credit cards, this is a good option for businesses that need to make recurring payments.

Braintree

Braintree, a PayPal affiliate, offers a developer-friendly API like Stripe for customisable payment solutions. It accepts credit cards, digital wallets like Apple Pay and Google Pay, and ACH payments. Braintree offers competitive pricing, starting at 2.9% + 30¢ per transaction, similar to Stripe. Businesses using PayPal can easily integrate it into their existing payment gateway.

What is the difference between Stripe and some of the alternatives to Stripe?

Stripe vs. Wonderful

USPs:

●     Stripe is the optimal choice for businesses that require a high degree of customisation when integrating card payments. It is designed to meet the complex requirements of businesses that specialise in online card payments and provides sophisticated features such as subscription billing, fraud protection, and multi-currency support.

●     Wonderful, on the other hand, offers a simple user interface, an aggressively priced, flat-fee model, open banking-powered instant payments, and robust security. These features make them ideal for small businesses in the UK looking for a flexible and scalable Stripe alternative. Wonderful is an FCA-authorised payment institution.

Pricing:

●     Stripe charges 1.5% + 20p per transaction in the UK, which is on par with market standards.

●     Wonderful’s flat-fee structure allows flexibility to businesses in the growth stage. An affordable starting plan at just £9.99 for 1,000 monthly transactions and only 1p per transaction outside the bundle makes them highly attractive for small and medium businesses.

Customer support:

●     Though Stripe provides solid customer support, some users have raised concerns regarding response time and live support.

●     Wonderful prides itself on direct customer service, providing support telephone numbers on its website, making it an excellent option for businesses that seek direct and responsive support in managing payment challenges.

Stripe vs. Square

USPs:

●     Stripe is acclaimed for its online payment processing functionalities. It provides a comprehensive API that enables enterprises to process payments internationally, incorporate subscription services, and oversee invoicing. Stripe's advantage is its adaptability and capacity for growth in online-centric enterprises.

●     Square is intended for small, brick-and-mortar enterprises. It is a comprehensive payment processor that provides mobile POS and retail POS systems in addition to allowing businesses to accept online payments. Square is an ideal choice for businesses seeking online and offline payments, as it is adept at integrating physical and online transactions.

Pricing:

●     Stripe follows a simple pricing model for online payments with a fixed rate of 1.5% + 20p per transaction.

●     Square levies a fee of 2.6% + 10¢ for in-person card transactions and 2.9% + 30¢ for online payments. Square offers an all-in-one solution for businesses that have both a physical and virtual presence.

Hardware support:

●     Stripe is primarily meant for online payments and doesn’t have the hardware infrastructure for in-person payments.

●     Square provides a diverse selection of hardware, such as mobile POS terminals, card scanners, and complete POS systems. Square is an exceptional option for small businesses that require tangible tools to process in-person payments.

Stripe vs. GoCardless

USPs:

●     Stripe offers a highly customisable API that enables organisations to design custom payment solutions. However, this level of customisation may necessitate technical knowledge, making it more appropriate for firms that have access to developers.

●     GoCardless focuses on simplicity and convenience of use for direct debits, needing less technical knowledge than Stripe. This makes it an excellent alternative for organisations looking for a straightforward, off-the-shelf solution for recurring payments.

Pricing:

●     Stripe sets a 1.5% fee plus 20p per transaction for card payments, which can result in significant expenses for businesses that handle a high volume of small transactions.

●     For businesses that depend on recurring or direct debit payments, GoCardless is a significantly more cost-effective option, as it charges approximately 1% per transaction for bank payments.

What is the best Stripe alternative for real-time payment processing?

In this jet age, time optimisation is of the essence. Businesses looking for real-time payment processors should factor in the security and scalability of service providers, apart from the transaction speed. Among the top alternatives to Stripe, the operators who emerge as the best real-time payment providers are:

●     Wonderful’s emphasis on instant payments via open banking positions it as a compelling choice for businesses that value speed and efficiency, along with reliability, in the UK market.

●     GoCardless shines as a remarkable real-time payment processor, providing pay-by-bank services that reduce dependence on conventional card networks.

●     Adyen truly stands out in this domain, especially for global enterprises seeking a smooth, instantaneous solution across various payment channels.

Which payment gateway is the best Stripe alternative for small businesses?

Small businesses or startups typically have unique business challenges, like stringent budgets, flexibility during the growth phase, limited technical knowledge, and manpower to delegate different operational tasks. Keeping these prerequisites in mind, the following Stripe alternatives are best suited to cater to their dynamic needs:

●     Wonderful is great for UK small businesses that want a solution that lets them accept fast payments and bank transfers and has clear, competitive pricing.

●     Square is a great option for small businesses, especially ones that have stores. Its retail POS system and mobile POS tools make it easy to take payments in-store and online.

●     Another great choice is PayPal, which is especially useful for businesses that need to take funds from customers in other countries. It is a strong competitor because people know the name and it is easy to add to other systems.

Which is better for website payments, Stripe or PayPal?

When choosing between Stripe and PayPal for website payments, businesses should reflect on various important aspects, such as the simplicity of integration, pricing structures, available features, and the extent of global reach. Stripe and PayPal are both prominent players in the online payments arena, each catering to distinct users and businesses. This comparison will guide you in discovering the option that aligns best with your needs:

Stripe is an excellent option for companies that either have in-house developers or are willing to invest in freelance developers with the intent to construct payment experiences that are suited to their specific interests. The fact that it is compatible with a broad variety of payment methods, including digital wallets and credit cards, makes it an excellent choice for online retailers who understand the importance of flexibility.

PayPal is well-known for its user-friendliness and global recognition in the industry. PayPal is trusted by customers, which can result in increased conversion rates on their part. Because of its intuitive user interface and seamless interaction with major eCommerce platforms, it is an excellent option for small enterprises or individuals who are searching for a solution that can be implemented immediately. Their simplistic interface enables non-tech users to quickly understand the installation and operating mechanisms, thus reducing probable overhead costs.

Conclusion

While it’s worth acknowledging that Stripe has made a significant contribution to the growth of the payment processing market, other payment gateways have come up with customised solutions to plug in some of the loopholes left by this Dublin-based service provider. Cost-effective pricing models, like the one offered by Wonderful, flexible options for brick-and-mortar and online businesses, like Square’s solutions, or the simple yet feature-rich offering of PayPal, can cater to a business segment that doesn’t require the tech-heavy framework of Stripe.

FAQs

What are the best alternatives to Stripe for UK business?

For businesses in the United Kingdom, GoCardless and Wonderful are excellent alternatives to Stripe because they provide affordable pricing and swifter bank-based payment processing.

What are some alternatives to Stripe that work worldwide?

PayPal, Square, Adyen, and Braintree are strong Stripe alternatives that boast a robust international network.

What are the top Stripe alternatives for small businesses?

Each of the three payment processors—Square, Wonderful, and PayPal offer a unique set of advantages, such as retail POS systems, instant payments, and the ability to accept online payments globally.

What is the best and fastest online payment processor, like Stripe?

In the race for the fastest payment processors in the UK, Wonderful and GoCardless are among the frontrunners, as both leverage the open banking system that promotes swift payment methods and immediate settlements.