Choosing the best payment gateway for your WooCommerce store

Whether you run a small online store or a growing eCommerce brand, choosing the right WooCommerce payment gateway can make a significant difference. It affects everything from transaction speed and payment security to customer experience and operational costs.

This guide is designed specifically for UK ecommerce businesses using WooCommerce, helping you compare, evaluate, and integrate the payment gateway that best fits your business goals.

But before we dive into options and integrations, let’s understand just how influential WooCommerce has become for the eCommerce ecosystem.

Recent WooCommerce data

How popular is WooCommerce among UK eCommerce stores in 2025?

WooCommerce powers approximately 39% of all eCommerce websites worldwide, making it the most widely used eCommerce platform globally. Its user base includes over 6.3 million websites, and that number is growing steadily.

According to The State of WooCommerce 2024 by Store Leads:

• WooCommerce saw a 9.6% quarter-on-quarter increase in online stores in Q1 2024
• Year-on-year growth reached 50% by the end of Q1 2024
• The United Kingdom accounts for 3.9% of all WooCommerce stores, the second-highest share globally.

Key insight: This rapid growth highlights the increasing reliance on WooCommerce among UK merchants and the need to choose the right payment gateway to stay competitive.

Why choosing the right WooCommerce payment gateway matters for your online store

Your WooCommerce payment gateway is more than just a tool for collecting payments; it impacts your conversion rate, operational efficiency, security posture, and scalability.

Here’s why selecting the right payment gateway is critical for any UK-based WooCommerce store:

Customer experience: Reduce cart abandonment and improve conversions

According to Baymard Institute, the average cart abandonment rate for eCommerce stores in 2024 was 70.19%. A major cause? Friction during checkout.

A well-integrated WooCommerce payment gateway:

• Supports open banking, digital wallets (e.g. Apple Pay, Google Pay), and card payments
• Offers faster checkout with minimal redirects
• Reduces friction with features like one-click payments and auto-fill

Result: Smoother experiences that build trust, reduce abandonment, and increase repeat purchases.

Cost-effectiveness: Lower transaction fees and hidden costs

Not all WooCommerce payment gateways charge the same. If your store handles high volumes, switching to a lower-cost provider could significantly reduce your overheads.

Watch out for:

• Transaction fees (percentage + fixed)
• Monthly subscription costs
• Setup or integration charges
• Fees for chargebacks or currency conversion

Tip: Look for transparent, flat-rate providers who offer value-added services without hidden costs.

Checkout complexity and hidden fees are top reasons customers abandon their carts. See how a purpose-built Woo plugin can reduce abandonment and support faster payouts, without disrupting your current setup.

Safety and compliance: Protect your Woo store and customers

In 2024, 43% of UK consumers reported encountering online payment fraud. Meanwhile, 75% of online retailers planned to increase spending on fraud prevention.

Your WooCommerce payment gateway must ensure compliance with key standards:

• PCI-DSS Compliance: Protects cardholder data using encryption and tokenisation
• GDPR Requirements: Clear documentation on data storage, retention, and customer rights
• Strong Customer Authentication (SCA): Mandatory for UK and EU payments under PSD2; adds two-factor authentication for higher-risk transactions

Best practice: Choose gateways that include machine learning-based fraud detection, real-time monitoring, and adjustable fraud filters that suit your risk tolerance.

Global expansion: Accept international payments with ease

The best WooCommerce payment gateways support:

• Multi-currency transactions
• Cross-border payments
• International compliance and tax handling

Benefit: You can tap into new markets, reduce payment friction abroad, and appeal to global customers, all while maintaining compliance.

Scalable integrations: Future-proof your WooCommerce operations

As your WooCommerce store grows, your payment infrastructure must scale too.

Choose a payment gateway that:

• Seamlessly integrate with WooCommerce, accounting tools, CRMs, and shipping platforms
• Support high transaction volumes without performance drops
• Offer features like subscription billing, invoice automation, and real-time reporting

Result: Streamlined backend operations, better financial tracking, and a payment stack that grows with your business.

A strategic payment choice is a business advantage for UK merchants using WooCommerce. The right payment gateway isn’t just a plug-in; it’s a critical business decision. It shapes customer experience, controls costs, and ensures security and compliance.

Types of WooCommerce payment gateways

Choosing the right WooCommerce payment gateway is a strategic decision for any UK-based online store. The gateway you select will impact everything from checkout speed and user trust to fees, compliance, and future growth potential.

To make the best choice, it's important to understand the types of payment functionality available and how these gateways can be integrated into your WooCommerce store.

By business use case

WooCommerce payment gateways can be grouped into three core types based on how your store handles payments:

1. Standard payment gateways

Handle one-time transactions for products or services. Best for businesses with a simple sales model and no recurring billing needs.

Examples: PayPal Standard, Stripe, Square

2. Subscription payment gateways

Designed for recurring billing, these gateways manage automatic payments, renewals, and invoice generation. Essential for membership sites or services with monthly fees.

Examples: Stripe + WooCommerce Subscriptions, GoCardless

3. Multipurpose payment solutions

These gateways support both one-time and recurring payments, often adding extras like multi-currency support, buy now, pay later, and local bank integrations. Ideal for stores with diverse offerings and international customers.

Examples: Mollie, Klarna, WorldPay

By technical integration model

Payment gateways also differ in how they’re embedded into your WooCommerce checkout experience. This affects user flow, PCI compliance needs, and customisation potential:

1. Direct (On-site) payment gateways

Customers enter their card details directly on your website, enabling a seamless checkout experience. These require your store to meet PCI-DSS security standards.

• Pros: Fast, professional user flow
• Cons: Higher compliance burden

Examples: Stripe, Square, PayPal Pro

2. Redirect (Off-site) payment gateways

Shoppers are redirected to an external, secure payment page to complete their transaction. These are easier to set up and maintain compliance but may slightly interrupt the user journey.

• Pros: Simpler setup, less risk
• Cons: Potential drop in conversions

Examples: PayPal Standard, SagePay

3. API-based or hosted solutions

These provide flexible, developer-friendly APIs or pre-built hosted checkouts. Great for stores that require customisation, local bank integrations, or open banking support in the UK.

Examples: Worldline, Trust Payments, custom bank integrations

Final takeaway

Understanding the types of WooCommerce payment gateways, both in terms of business fit and technical setup,  is crucial for optimising your store’s performance. Whether you're a UK small business just launching or an established brand scaling globally, choosing the right gateway will directly influence your customer satisfaction, compliance, and bottom line.

What Is the WooCommerce payment gateway API?

If you're looking to add a custom payment gateway to your WooCommerce store, the platform offers a robust and well-documented API designed to support seamless integration.

The WooCommerce Payment Gateway API allows developers to build fully custom solutions tailored to specific business requirements, such as integrating with local banks, supporting open banking, or enabling alternative payment methods.

Key components of the WooCommerce payment gateway API

Here are the main elements developers use when building a custom WooCommerce payment gateway:

1. Classes

To create a new gateway, developers extend the core class:

class WC_Gateway_YourGateway extends WC_Payment_Gateway { }

This forms the foundation for your payment method’s structure.

2. Functions

WooCommerce provides essential functions to customise your gateway:

• init_form_fields() – defines admin settings for your gateway
• process_payment() – handles the payment transaction logic
• validate_fields() – validates user input before processing

3. Webhooks

Webhooks allow you to respond to asynchronous events, such as:

• Payment confirmations
• Refund processing
• Failed or cancelled transactions

This ensures your WooCommerce store stays synchronised with your payment provider in real time.

Want to build a custom payment gateway?

WooCommerce provides full documentation to guide developers through the process. For more detailed technical information, refer to the official WooCommerce payment gateway API documentation.

WooCommerce payment integration: A step-by-step guide

Integrating a payment gateway with your WooCommerce store is a straightforward process, especially with the wide range of official and third-party plugins available for UK merchants.

Whether you're setting up a standard card processor, open banking solution, or subscription billing provider, the following steps outline the typical integration process via the WordPress admin panel:

How to add a payment gateway to WooCommerce

Step 1: Install the WooCommerce payment plugin

From your WordPress dashboard, go to:

Plugins > Add New

Search for your preferred payment gateway (e.g. Stripe, PayPal, Wonderful, GoCardless), then click Install Now on the plugin.

Step 2: Activate the plugin

Once installation is complete, click Activate to enable the plugin on your WooCommerce store.

Step 3: Configure the payment gateway settings

Navigate to:

WooCommerce > Settings > Payments

You’ll see the newly installed gateway listed here. Click on it to edit the configuration, including:

• Enabling/disabling the gateway
• Setting display names at checkout
• Customising payment instructions

Step 4: Set up your account credentials

Enter the required authentication details provided by your payment provider. This may include:

• API keys or tokens
• Merchant IDs
• Webhook URLs
• Security credentials for sandbox/live environments

Be sure to keep these details secure.

Step 5: Test in a sandbox environment

Before accepting live transactions, test the integration using the gateway’s sandbox mode. This helps verify:

• Payment success and failure scenarios
• Order status updates in WooCommerce
• Email confirmations and receipts

Tip: Most providers offer detailed sandbox testing guides. Testing helps avoid costly issues when your store goes live.

Final note on integration

Some payment providers may require additional setup steps, such as enabling webhooks, configuring 3D Secure, or verifying your business account. Always refer to your provider’s official WooCommerce documentation for platform-specific requirements.

How to integrate a local bank payment gateway with your WooCommerce store

For UK businesses looking to work directly with domestic banks or regional payment providers, integrating a local bank payment gateway into your WooCommerce store can open up new growth opportunities, especially if you're targeting specific customer preferences, B2B invoicing, or open banking.

Here’s how to do it step-by-step:

1. Obtain API documentation from Your bank

Begin by contacting your bank to request its payment gateway API documentation. This will typically include:

• Endpoint URLs
• Authentication keys
• Security requirements (e.g., OAuth, 3D Secure)
• Data handling protocols

2. Develop a custom WooCommerce plugin

Use the WooCommerce Payment Gateway API to create a custom plugin that connects your store to the bank’s payment service.

Key development tasks include:

• Extend the WC_Payment_Gateway class
• Define settings with init_form_fields()
• Handle transaction logic in process_payment()
• Validate user inputs with validate_fields(

Tip: WooCommerce developer documentation provides sample code to speed up your development process.

3. Test in a sandbox environment

Before going live, test the gateway in a sandbox (test) environment. This will help you:

• Validate successful and failed transactions
• Identify API request/response issues
• Simulate refunds or chargebacks

Involve your bank's tech support if necessary, especially for authentication setup or error debugging.

4. Ensure compliance with UK financial regulations

Compliance is essential when processing payments, particularly with bank integrations. You must adhere to:

• PCI-DSS standards (including encryption/tokenisation)
• GDPR for customer data protection
• Strong Customer Authentication (SCA) under PSD2

Speak to your provider about their compliance procedures and document everything for internal audits.

5. Go live and monitor transactions

Once tested and approved, deploy your plugin to your live WooCommerce store. Closely monitor the first few transactions to ensure:

• No failed payments
• Accurate status updates in WooCommerce
• Timely customer notifications

Optimising WooCommerce payment gateway performance

A successful integration is only the beginning, performance is equally crucial, especially in a high-volume or subscription-driven store.

Key performance areas to monitor:

Speed and latency

A good gateway should process transactions within 2 to 3 seconds. Delays over 5 seconds can increase cart abandonment by up to 27%, especially during peak traffic times.

Recurring billing (for subscriptions)

For subscription-based WooCommerce stores:

• Look for gateways with automatic retries for failed payments
• Support for plan upgrades/downgrades
• Easy billing schedule modifications

Stress testing and error recovery

Your integration should be built to handle:

• High transaction volumes, such as during sales events
• Downtime or timeouts, with clear error messages and retry logic

Full compatibility with mobile commerce, as over 60% of eCommerce traffic now comes from mobile devices

Ongoing performance monitoring

Set up automated performance reports to track:

• Transaction success rates
• Error types and frequencies
• Average processing times

Use this data to proactively troubleshoot and optimise your system.

6 best WooCommerce payment gateways for UK merchants 

Choosing the right WooCommerce payment gateway is essential for UK-based online stores. Whether you're prioritising lower fees, recurring billing, security, or multi-channel compatibility, your payment gateway directly impacts the checkout experience, customer trust, and your store’s profitability.

Here are six of the best WooCommerce payment gateways for UK merchants, each with unique advantages suited to different business models:

1. Wonderful: Best for low-cost, ethical open banking payments

Ideal for: UK small businesses, social enterprises, and budget-conscious merchants

Overview: Wonderful is redefining WooCommerce payments through Open Banking. Unlike traditional gateways, Wonderful charges zero percentage fees, making it one of the most affordable payment gateways in the UK. It's FCA-authorised and designed to support businesses that value cost-efficiency and corporate social responsibility (CSR).

Key features:

• £19.99/month for 2,000 transactions; just 1p per additional transaction
• Bank-level security and strong customer authentication (SCA)
• Instant bank transfers with fast settlement for better cash flow
• Seamless WooCommerce plugin with minimal technical setup
• Can run alongside other gateways for a flexible checkout experience
• Supports UK charities by eliminating card processing fees entirely

2. PayPal: Best for global reach and customer trust

Ideal for: WooCommerce stores with international customers

Overview: PayPal remains a top-tier gateway thanks to its wide recognition, ease of use, and buyer protection policies. It integrates smoothly with WooCommerce and supports multiple payment types, including debit/credit cards and PayPal balances.

Key features:

• Available in 200+ countries and supports major currencies
• Advanced fraud detection and buyer protection policies
• No monthly fee for standard accounts
• Simple WooCommerce integration with pre-built plugins
• Recognised brand boosts consumer trust and conversion rates

3. Stripe: Best for flexibility, subscriptions and customisation

Ideal for: Developers, subscription businesses, and growing WooCommerce stores

Overview: Stripe is a developer-friendly, highly scalable solution that supports everything from basic card payments to subscriptions, mobile wallets, and advanced analytics.

Key features:

• Accepts cards, Apple Pay, Google Pay, ACH, and more
• Built-in tools for recurring billing and subscription management
• In-depth reporting and analytics dashboard
• Highly customisable API for tailored WooCommerce experiences
• Strong compliance (PCI-DSS, SCA) and fraud prevention tools

4. Square: Best for omnichannel (Online + In-store) payments

Ideal for: WooCommerce stores with physical retail locations

Overview: Square allows merchants to unify both their online Woo store and offline point-of-sale (POS) system. Its WooCommerce plugin is easy to set up and comes with additional tools for inventory and customer management.

Key features:

• Accepts in-person and online payments under one system
• Built-in tools for inventory tracking, sales reporting, and CRM
• No monthly fees or hidden costs
• Instant synchronisation between WooCommerce and POS sales
• Easy plugin setup, ideal for non-developers

5. Authorize.Net: Best for security and high-risk merchants

Ideal for: Businesses with high security needs or recurring payments

Overview: Authorize.Net offers robust fraud prevention, recurring billing support, and multi-payment options. It’s a reliable choice for UK WooCommerce merchants handling sensitive customer data or operating in high-risk sectors.

Key features:

• Advanced Fraud Detection Suite (AFDS)
• Accepts card payments, digital wallets, and e-cheques
• Strong subscription billing support
• Customer Information Manager (CIM) for secure repeat billing
• Well-documented WooCommerce integration options

6. Amazon Pay: Best for fast, familiar checkout

Ideal for: Stores aiming to boost conversions through speed and trust

Overview: Amazon Pay enables customers to check out using their existing Amazon accounts. This not only shortens the checkout process but also capitalises on the trust and familiarity of the Amazon ecosystem.

Key features:

• Seamless checkout across desktop and mobile
• Works on tablets, smartphones, and desktops
• Quick setup and plugin-based WooCommerce integration
• Amazon’s trusted security infrastructure
• Especially useful for increasing conversion rates and reducing drop-off

Summary table

Compare leading WooCommerce payment gateways in one place

See how major processors like Wonderful, PayPal, and Stripe differ when it comes to fee structures, fund availability, and platform compatibility. This comparison can help you make informed decisions that impact revenue and cash flow.
View the comparison sheet

What other payment gateways does WooCommerce support?

The growing global adoption of WooCommerce has encouraged a diverse range of payment gateway providers to build dedicated integrations. Whether you’re a UK-based merchant looking for recurring billing options, European market access, or enhanced fraud protection, there’s a WooCommerce-compatible solution to suit your needs.

Here are some notable alternative payment gateways supported by WooCommerce:

GoCardless

A top choice for subscription-based businesses and those who prefer direct debit payments over cards.

• Specialises in recurring billing and automated Direct Debit collection
• Offers intelligent payment retries, reducing failed transactions
• Fully compliant with UK and EU regulations, including SEPA

Best for: Membership sites, utility services, and B2B SaaS platforms in the UK and Europe

Worldpay

One of the UK’s most established payment processors, now fully integrated with WooCommerce.

• Supports multi-currency transactions for international commerce
• Offers advanced fraud detection and secure tokenisation
• Includes comprehensive reporting tools and chargeback management

Best for: Large UK eCommerce stores with complex, high-volume operations

Global Payments

An increasingly popular option among UK WooCommerce store owners for both one-off and subscription transactions.

• Offers a robust WooCommerce plugin supporting recurring billing
• Strong focus on security compliance, including PCI-DSS and SCA
• Backed by a wide support network across the UK and Ireland

Best for: UK merchants needing flexible billing models and high service reliability

🇪🇺 WebToPay

A strong choice for UK businesses targeting EU markets, especially Eastern and Northern Europe.

• Provides regional payment options such as bank transfers and e-wallets
• Supports WooCommerce multi-language and multi-currency setups
• Enables seamless integration for cross-border selling

Best for: UK businesses expanding into EU regions with localised payment preferences

MultiSafepay

Offers a wide range of localised payment options across Europe, with a strong WooCommerce integration.

• Accepts gift cards, local bank methods, and digital wallets
• Includes customisable checkout flows and subscription management
• Offers full visibility into transactions with detailed reporting dashboards

Best for: Niche retailers and WooCommerce stores focused on custom user experiences in EU markets

Summary

These gateways offer valuable alternatives to standard providers like Stripe or PayPal, especially if your business model requires:

• Direct Debit
• Subscription billing
• Multi-currency support
• Regional/localised payment methods
• Higher security or compliance standards

Always evaluate your store’s customer base, transaction volume, and regional strategy when selecting a payment gateway.

Understanding WooCommerce subscription payment systems

For UK WooCommerce businesses offering subscription-based products or services, from digital memberships to physical subscription boxes, selecting the right WooCommerce subscription payment gateway is critical to long-term growth, cash flow stability, and customer retention.

It’s not just about accepting payments. Subscription gateways must manage the entire billing lifecycle, including automation, error handling, and customer communications.

Key features to look for in a subscription payment gateway

When evaluating a payment gateway for WooCommerce subscriptions, prioritise the following:

• Automated recurring billing
  Seamlessly charge customers on a fixed schedule (weekly, monthly, annually) without manual intervention.
• Failed payment handling
  Automatically retry failed transactions, notify customers, and maintain active subscriptions with minimal churn.
• Flexible subscription management
  Enable customers to upgrade, downgrade, pause, or cancel plans. Your gateway should support dynamic billing and proration.
• Smart dunning tools
  Reduce involuntary churn with automated reminders and retry sequences.
• Secure tokenisation
  Store customer payment details securely for one-click renewals and compliance with PCI-DSS.
• Support for variable billing
  Ideal for businesses offering usage-based or metered billing models.

Popular WooCommerce subscription gateways

Several leading payment providers offer strong plugin support for WooCommerce subscription models:

• Stripe for WooCommerce subscriptions
  Offers robust recurring billing, flexible subscription plans, smart retry logic, and seamless integration with the official WooCommerce Subscriptions plugin.
• PayPal Payments
  Widely used and trusted, PayPal supports recurring billing and pre-built tools for customer communications and billing updates.
• GoCardless
  Specialises in Direct Debit payments in the UK and EU, a lower-cost alternative to card-based subscriptions. Excellent for B2B and service-based firms.
• Square and Authorize.net
  Suitable for businesses that need flexible billing frequencies and detailed reporting.

Tip: To unlock full subscription functionality, pair your payment gateway with the official WooCommerce Subscriptions plugin, which supports:

• Prorated charges
• Manual or automatic renewals
• Free trials and sign-up fees
• Synchronised payment schedules

By selecting a WooCommerce payment gateway purpose-built for subscriptions, you ensure not only secure recurring billing, but also a smooth experience for your UK customers, improving retention, reducing failed payments, and supporting long-term business scalability.

Future trends in WooCommerce payment options

The way UK merchants accept and manage payments on WooCommerce is rapidly evolving, driven by both technology and shifting consumer expectations. Staying ahead of these trends ensures your store remains competitive, secure, and customer-focused.

Open banking integration

Open Banking is transforming WooCommerce payment processing in the UK. By enabling direct bank-to-bank transfers through secure APIs, it offers merchants:

• Lower transaction fees (vs traditional card processors)
• Faster settlement times, improving cash flow
• Bank-level security with strong customer authentication (SCA)
• Real-time payment visibility, reducing delays and disputes

Open Banking solutions are increasingly supported by modern WooCommerce payment gateways, making them a smart addition for UK-based stores.

Emerging WooCommerce payment features

Several cutting-edge features are shaping the future of WooCommerce payments:

• Cryptocurrency payments
  Gateways with crypto support (e.g. Bitcoin, Ethereum) are gaining traction, especially among digitally savvy customers. Some WooCommerce plugins now allow easy integration with popular crypto wallets.
  
• Buy Now, Pay Later (BNPL)
  BNPL options like Klarna and Clearpay are growing rapidly in the UK, especially among Gen Z and millennial shoppers. They improve conversion rates by offering flexible instalments without upfront costs.
  
• Mobile wallet integration
  Apple Pay, Google Pay, and Samsung Pay are now expected by many consumers. Their fast, secure, and mobile-first nature makes them essential for WooCommerce stores targeting mobile shoppers.

Key insight for UK merchants:

Flexibility is the future. The most successful WooCommerce stores will be those that offer multiple payment options, tailored to user preferences, from instant bank transfers to crypto and instalment payments.

The latest insights on WooCommerce payment costs

A current look at payment gateways supporting WooCommerce in the UK and globally. Compare service fees, settlement speeds, and pricing structures, all in one visual reference.
View the fee structure and savings report

Corporate social responsibility (CRM)- The Wonderful way

In today’s purpose-driven economy, customers increasingly value businesses that align with meaningful social causes.

One standout example is Wonderful, an FCA-authorised payment provider designed around ethical business practices. Here’s how they’re different:

• Zero processing fees for merchants and charities
• Supports charitable giving via every transaction
• Emphasises transparency and trust over profit
• Partners with socially responsible UK businesses

By using payment providers like Wonderful, WooCommerce store owners can reduce costs while contributing to wider social impact initiatives, enhancing both brand value and customer loyalty.

FAQ

Can WooCommerce support multiple payment gateways?

Yes, WooCommerce supports multiple payment gateways, allowing UK merchants to offer various checkout options. This helps reach local and global customers, and can improve checkout conversion rates.

How do I choose the best WooCommerce payment gateway for international customers?

Choose a payment gateway with multi-currency support and global reach. PayPal, Stripe, and Authorize.net are great for UK stores selling abroad.

Which WooCommerce payment gateway offers instant settlement?

Wonderful offers instant settlement via Open Banking. It's ideal for UK merchants who want faster cash flow and lower WooCommerce gateway fees.

Are there any free WooCommerce payment gateways?

While no gateway is fully free, platforms like PayPal and Stripe have no setup fees or monthly charges. Wonderful also offers low-cost plans for UK stores.

What mobile features should I look for in a WooCommerce payment gateway?

Look for fast mobile checkout, mobile SDKs, and wallet support. These features help reduce cart abandonment and improve mobile payment conversion.

How do I prepare my WooCommerce payment gateway for high-traffic events?

Ensure your payment gateway supports load balancing and has error handling. Check hosting and gateway capacity before sales peaks like Black Friday.

Which WooCommerce payment gateway works best for UK businesses?

Stripe, PayPal, and Wonderful are top WooCommerce payment gateways for UK stores, offering local bank support, compliance, and low fees.

What is the easiest WooCommerce payment gateway to set up?

PayPal, Stripe and Wonderful offer the easiest setup. They work out-of-the-box with WooCommerce and require no coding, ideal for small UK stores.

Photo by Mike Petrucci on Unsplash