Table of contents
Updated 25 August 2026. Prices were checked on the providers' official UK pages on this date.
The cheapest online payment gateway for your business depends on what you sell, how customers pay and the value and volume of your transactions. A percentage fee may look modest on a £20 sale and become expensive on a £500 invoice. A monthly plan can deliver a lower effective cost when payment volume is predictable.
This guide compares five ways to take online payments in the UK: Wonderful, Square, Stripe, Shopify Payments and PayPal. It shows the public headline costs, the role each service performs and the questions that affect your real monthly bill.
Prices can change. Check the linked provider pages and your contract before choosing a service.
Online payment costs at a glance
The table uses public UK pricing checked on 25 August 2026. Card rates refer to the specified domestic or standard UK card transaction. Wonderful uses Pay by Bank, so the payer authorises an account-to-account payment through their bank.
| Provider | Payment route | Headline UK online price | Monthly cost | Strong fit |
|---|---|---|---|---|
| Wonderful | Pay by Bank | 0% percentage fee. Plans include 300, 800 or 2,400 payments. Overage is 6p, 4p or 2p. | £24, £48 or £96 plus VAT | UK businesses seeking predictable costs, payment links, Woo, Xero or API options |
| Square | Cards | 1.4% + 25p for an online UK card transaction | No start-up fee for payment processing | Businesses combining online checkout with Square's wider commerce tools |
| Stripe | Cards and other supported methods | 1.5% + 20p for a standard UK card | No setup or monthly fee for standard Payments pricing | Developer-led checkout and broad payment-method coverage |
| Shopify Payments | Cards inside Shopify | From 2% + 25p for a standard online card on Basic | Basic starts at £25 when paid monthly | Businesses that also need an ecommerce website and store-management platform |
| PayPal | PayPal wallet and commercial payments | 2.9% + 30p for an 'all other' domestic commercial transaction in pounds | Transaction pricing used here; optional products and agreements vary | Businesses that value PayPal wallet availability and its established checkout route |
Wonderful's current plans and allowances are published on its pricing page.1 Square publishes 1.4% + 25p for online UK cards.2 Stripe publishes 1.5% + 20p for standard UK cards.3 Shopify's Basic plan lists a £25 monthly price and a 2% + 25p standard online card rate when paid monthly.4 PayPal lists 2.9% plus a 30p fixed fee for its 'all other' domestic commercial transaction category in pounds.5
Gateway, provider and payment method
These terms affect what you are comparing.
- Payment method: the route the customer uses, such as a card, PayPal wallet or Pay by Bank.
- Payment gateway: the checkout technology that securely passes payment information into the payment process.
- Payment processor or payment service provider: the business and technical service that handles payment processing and returns transaction status.
- Ecommerce platform: software that can combine website hosting, catalogue, stock, checkout and order management. Shopify sits in this category and includes Shopify Payments.
A broad gateway comparison can therefore include services that solve different parts of the job. Your shortlist should start with the payment routes customers need and the systems you already use. The small-business payment systems guide can help you compare the wider methods before you choose a provider.
Calculate the real monthly cost
Start with a representative month. Record your number of successful payments, average order value, UK and international card mix, refund and dispute volume, currencies, sales channels and required integrations. Apply every relevant percentage fee, fixed fee, subscription, allowance, overage and additional product charge.
These two examples use 100 and 500 successful £50 UK transactions. They use the headline rates in the comparison table, exclude VAT and optional products, and assume every card fits the named domestic or standard UK category. The PayPal figure uses its 'all other' domestic commercial transaction rate. Shopify uses Basic on monthly billing. Wonderful uses Starter with published overage pricing.
| Provider | 100 payments at £50 | 500 payments at £50 |
|---|---|---|
| Wonderful Starter | £24 plus VAT | £36 plus VAT, including 200 payments at 6p overage |
| Square online UK cards | £95 | £475 |
| Stripe standard UK cards | £95 | £475 |
| Shopify Basic and Shopify Payments | £150 | £650 |
| PayPal domestic commercial payments | £175 | £875 |
The example shows how percentage fees increase with sales value. It also shows why a headline transaction rate cannot make the whole decision. Wonderful's Starter plan covers links, in-person payments and remote collection. Woo or Xero requires Plus, and API access requires Pro. Shopify's monthly charge also pays for a broader ecommerce platform. Square, Stripe and PayPal provide card or wallet coverage that a Pay by Bank-only route does not replace for every customer.
Run the same calculation with your own numbers. Include the cost of any card mix, currency conversion, disputes, accelerated payouts, extra software, hardware and staff time that applies to your operation.
Five cost-effective online payment options
1. Wonderful for predictable Pay by Bank costs
Wonderful lets a customer make a one-off payment from their bank account. The public plans charge £24, £48 or £96 per month plus VAT, with no percentage fee. Each plan has a monthly allowance and a fixed overage price. The Starter plan includes links, in-person payments and remote collection. Plus adds one integration, and Pro includes multiple integrations, simple API access and custom branding options.1
This structure becomes attractive when order values rise because the fee does not take a percentage of the sale. A £50 and a £500 payment use one payment from the allowance.
The payment route also changes. Your customer selects their bank and authenticates inside their banking service. Their bank decides whether to authorise the payment. Wonderful then reports the payment status. Bank authorisation, provider status, credit to your account, funds availability and reconciliation remain separate stages. The step-by-step Pay by Bank guide explains the sequence.
Wonderful supports payment links, Woo, Xero and an API through its published plans and integrations.6 Check the required plan before comparing costs. Customer preference and supported-bank coverage also belong in the decision.
2. Square for a low public UK online card rate
Square publishes a 1.4% + 25p fee for UK cards used through Square Online, Online Checkout and its ecommerce API and SDK. It lists 2.5% + 25p for non-UK cards and different rates for invoices, manually entered payments and cards on file.2
The 1.4% headline percentage is the lowest standard UK online card percentage in this five-provider comparison. The 25p fixed element has more impact on low-value sales. On a £5 transaction, the published UK online fee is 32p. On a £500 transaction, it is £7.25.
Square can suit businesses that want online and in-person card acceptance within the same provider family. Check any software-plan, hardware, instant-transfer and non-UK card costs that apply to your setup.
3. Stripe for developer-led card checkout
Stripe publishes 1.5% + 20p for a successful online payment using a standard UK card. It states that standard Payments pricing has no setup or monthly fee. Premium UK cards, EEA cards, international cards, currency conversion and optional products carry their own rates.3
The fixed 20p component helps Stripe match Square's cost in the £50 example. Square becomes cheaper in this simple comparison as the transaction value increases because its percentage is 0.1 points lower. Your actual result depends on card classification and any additional Stripe products you use.
Stripe can suit a business that wants developer tools, hosted checkout options and broad payment-method coverage. Review the exact services in your implementation and price each one.
4. Shopify Payments for an integrated online store
Shopify combines an ecommerce platform with payments. Its UK pricing page lists Basic at £25 per month on monthly billing, with a 2% + 25p standard online card rate. Higher plans carry lower standard online card rates and higher monthly subscriptions. Shopify also lists additional transaction fees when a third-party payment provider is used.4
The monthly platform price covers more than payment processing. It includes the online store, hosting and commerce tools listed for the plan. That can make sense when you need the full platform. A business with an established website may find that the extra platform scope duplicates systems it already pays for.
Compare the complete Shopify plan against the complete alternative stack. Include website, checkout, stock, reporting and any third-party payment-provider fee.
5. PayPal for wallet availability
PayPal's UK merchant fee page lists several domestic transaction categories. The broad 'all other commercial transactions' rate is 2.9% plus a fixed fee, with 30p listed for pounds sterling. It also publishes different rates for QR transactions and certain card-funded payments made without a PayPal account.5
PayPal can add a familiar wallet route to checkout. The value of that option depends on your customers and the transactions they make. Use the precise rate for each payment type and include international surcharges or other product fees where they apply.
The standard 2.9% + 30p example is the highest headline transaction rate in this five-provider comparison. Negotiated or category-specific rates can produce a different result.
Choose the right option for your checkout
List the payment routes customers need
Decide whether your checkout needs cards, Pay by Bank, PayPal, recurring collection or a mix. A lower-cost route delivers value when customers can and will use it. Many businesses keep more than one route available.
Model a normal month and a peak month
Calculate total cost at your real order value and volume. Test a peak trading month as well as the average. Percentage pricing, allowances and overages behave differently as the numbers change.
Check card and country mix
Standard UK cards can carry a lower rate than premium, EEA or international cards. Currency conversion can add another fee. Use your own historic mix where available.
Check payment status and access to funds
Ask each provider what every status means. A payer can authenticate, a bank can authorise and a provider can send a success status before your internal reconciliation is complete. Confirm when money is credited, when it becomes available and what your team must do when status is delayed or uncertain.
Check integrations and operational work
Confirm that the provider connects to your website, accounts and order workflow. Review Woo, Xero, API, reporting and reconciliation needs. A cheap transaction can still create expensive manual work when systems do not connect.
Test the customer journey
Run the checkout on mobile and desktop. Check payment presentation, authentication, return to your site, confirmation, failure handling and customer support. Measure completed purchases with your own data before making a broad rollout decision.
The UK payment-processing companies comparison can help you map provider roles. The cards versus Pay by Bank cost guide gives a closer comparison of those two routes.
Frequently asked questions
What is the cheapest online payment gateway in the UK?
The answer depends on transaction value, volume, payment method, card mix and required software. In the worked examples above, Wonderful has the lowest provider charge for businesses whose customers use Pay by Bank. Square and Stripe have the lowest public standard UK online card costs among the card options compared at £50 per transaction.
Can I take online payments for free?
Every provider in this comparison has a cost under the scenarios shown. Some services waive setup or monthly fees and charge per transaction. Wonderful charges a monthly plan with an allowance and no percentage fee. Free trials and promotions have conditions and end dates, so they should not form the long-term cost model.
Is a percentage fee or monthly plan cheaper?
A percentage fee can suit low or irregular sales because the fee follows each transaction. A monthly plan can reduce the effective cost per payment when volume is predictable or order values are high. Calculate both structures with your own numbers.
Should I use Pay by Bank or cards?
Pay by Bank can reduce processing costs and move money directly from the customer's bank. Cards provide broad familiarity and support payment journeys that Pay by Bank may not cover. Your checkout can offer both routes and let customers choose.
How quickly will I receive the money?
Timing varies by payment method, provider, bank and account setup. Confirm the separate stages of authorisation, processing, provider status, credit and funds availability. Use the provider's contract and live reporting for your exact service.
Which fees should I compare?
Compare the percentage fee, fixed transaction fee, monthly plan, allowance, overage, setup, card category, international, currency-conversion, dispute, payout, hardware and optional software costs that apply. Include VAT where the provider charges it.
Footnotes
- Wonderful, payment plans and pricing, checked 25 August 2026.
- Square, UK fee schedule, updated 2 February 2026 and checked 25 August 2026.
- Stripe, UK pricing and fees, checked 25 August 2026.
- Shopify, UK plans and payment rates, checked 25 August 2026.
- PayPal, UK merchant fees, last updated 15 July 2026 and checked 25 August 2026.
- Wonderful, payment integrations, checked 25 August 2026.