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The pandemic has accelerated the growth of ecommerce with online transactions now accounting for more than 30% of retail sales in 2020 the UK. If you’re looking to capitalise on this growth and start taking payments online for the first time, or you’re looking to improve your existing online payment system, we’ll give a run down of some of the best online payment systems to consider.
Online payment systems include the elements required to accept online payments for goods and services. An online payment system will usually be made up of a number of 3 main components:
These individual elements can come separately or packaged as a single service so you may not realise you are receiving all three from one company offering an online payment system.
At a very high level, a payment gateway is a form of software that securely transfers information between the card network and the payment processor.
Businesses will also need aa merchant bank account that allows them to accept credit and debit card payments but this is normally provided by the payment processor.
The right solution for your business will depend on its size, card transaction volume, and a number of other factors. Some specialist providers allow businesses to host their own checkout by using an API (Application Programming Interface) solution, but most SMEs will be better served by an out-of-the-box hosted solution.
If you don’t want to use one of many 3rd party online payment system providers that will provide the functionality you need out-of-the-box, it is possible to set up your own solution. Doing so is no simple task, but by following these steps you can create a fully bespoke system for your organisation:
Many lists of payment systems can be regarded as a list of options to accept payments online that can be combined into a single online payment system.
For example, eCommerce platforms such as WooCommerce and Shopify allow you to choose from (and even combine) multiple online payment methods including PayPal, Klarna, and Amazon Pay while using a merchant account such as WorldPay, Global Payments, or First Data to process and bank the revenue you generate.
Before deciding which route is best for your business, it’s important to understand the difference between hosted and self-hosted online payment systems.
Hosted online payment systems are easy to set up and manage, since the checkouts and infrastructure are already designed. This means that businesses can use hosted solutions without the need for extensive coding experience. These solutions are offered by eCommerce providers such as Shopify, along with numerous payment processors such as Stripe.
Self-hosted online payment systems may offer more extensive customisation options, but this comes with added complexity. Businesses will need to have some coding capabilities to manage a solution using an API (Application Programming Interface), and this option is arguably more suitable for those with a higher turnover and the need for flexibility. Providers of self-hosted online payment systems include Ayden, Braintree, Stripe, and Checkout.com.
Although you may be left with less control over your payment processing by using these integrated eCommerce payments, they do simplify the entire process. This is why many small businesses choose to work with an eCommerce platform that can provide them with the functionality of an online payment system without the need to create their own infrastructure.
Stripe is a major international payments platform that has become popular amongst start-ups and growing businesses of all sizes. While it can be complex to set up using its API, Stripe comes with extensive customisation options and can be customised to meet your business needs.
Transaction fees are transparent and lower than many of the other providers that publish fees (although still higher than most businesses can get by integrating with their own payment processor / merchant account which we can help with). There are no set-up fees or monthly costs. Businesses should, however, be aware that Stripe applies a reasonably expensive rate to non-European card transactions.
| Payment System(s) | Online payment gateway and payment processing solution for integration with an existing website or eCommerce platform. |
| Functionality Offered | Payment Gateway Virtual Terminal Invoicing Recurring Payments Integration with Alipay, Apple Pay, Google Pay and more |
| Speed of Payments | Funds reach merchant accounts within seven working days. |
| Integration | Self-hosted with API Hosted with Stripe Checkout Prebuilt payment interfaces from Stripe Elements |
| Fees | No contract or monthly fees 1.4% + 20p charged on European card transactions 2.9% + 20p charged on non-European card transactions 0.5% charged for recurring payments 2% currency conversion charge |
| Best Suited To | Businesses with strong technical capabilities that require customisation options and flexibility, including: Marketplace platforms Membership-based services SaaS Providers |
Ayden is a well-regarded payment solution provider that’s used by some of the world’s largest brands including Netflix, Uber, and Spotify. It facilitates easy international business payments, but may be a little expensive for businesses with lower transaction volumes.
The all-in-one solution accommodates a huge range of international payment options, and is suitable both for online merchants and those with a bricks-and-mortar presence.
| Payment System(s) | Online payment gateway and payment processing solution for integration with an existing website or eCommerce platform. |
| Functionality Offered | Payment Gateway Virtual Terminal Invoicing Recurring Payments Integration with Alipay, Apple Pay, Google Pay and more |
| Speed of Payments | Funds reach merchant accounts within seven working days. |
| Integration | Self-hosted with API Hosted with Stripe Checkout Prebuilt payment interfaces from Stripe Elements |
| Fees | No contract or monthly fees 1.4% + 20p charged on European card transactions 2.9% + 20p charged on non-European card transactions 0.5% charged for recurring payments 2% currency conversion charge |
| Best Suited To | Businesses with strong technical capabilities that require customisation options and flexibility, including: – Marketplace platforms – Membership-based services – SaaS Providers |
Trustpayments.com offers a wide range of payment solutions, including a payment gateway and a number of support tools for eCommerce businesses. While the pricing structure can be difficult to make sense of without consulting with their team, the fintech firm provides an all-in-one payment gateway and processing solution that is geared towards merchants who need customisation and integration options.
| Payment System(s) | Integrated system for online, in-app, point of sale (POS) and in-store payments. |
| Functionality Offered | Rapid and secure ePOS solution Payment tracking International payment capabilities with processing of over 100 currencies Shopping cart integration for Shopify, BigCommerce, WooCommerce and more |
| Speed of Payments | Three to five business days depending on merchant services provider. Faster settlement times available dependent on merchant services account and package. |
| Integration | Integrated service through TRU Connect SME Self-hosted API available |
| Fees | Bespoke pricing on application. |
| Best Suited To | SMEs that want to add a customisable e-payment capability to their online commerce site. |
Checkout.com is a global fintech firm that offers a single API that can be developed to provide one united payment gateway and processing solution. Processing over 150 currencies with domestic coverage in more than 45 countries, merchants benefit from detailed data analysis, advanced anti-fraud tools, and the ability to cope with high transaction volumes.
Although Checkout.com does offer a highly competitive service, reviews indicate that the provider may be less willing to work with smaller businesses than some competitors. Its service may therefore be more suitable for larger merchants with higher monthly revenue figures.
Payment System(s) | A unified payments platform, with an eCommerce plugin that works with Magento, WooCommerce, Shopify and more. |
Functionality Offered | Payment Gateway Full PCI compliance Accepts multiple international currencies. Advanced fraud protection Capable of integration with Shopify, Bigcommerce, and other eCommerce platforms |
Speed of Payments | 30 minutes using Fast Funds, or up to 48 hours otherwise. |
Integration | Self-hosted API available for a unified platform. |
Fees | Bespoke pricing on application. |
Best Suited To | Larger businesses requiring support with a high volume of transactions and a customisable payment solution. |
PayPal
is the first name that comes to mind for most of us when we think about online payments and this counts for your customers, too. It’s probably the easiest way for merchants to start accepting online payments quickly – although there are a few compromises.
Notably, PayPal is not the cheapest payment gateway and processing option, and becomes more economical for businesses that are dealing with high revenues and transaction volumes.
Payment System(s) | A fully customisable system that accepts major credit and debit cards, along with PayPal and PayPal Credit. |
Functionality Offered | Payment gateway Payment links Buy buttons Virtual terminal Invoicing |
Speed of Payments | Immediately to online accounts Up to two working days for manual transfers |
Integration | Fully integrated payment solution API available for broad customisation options |
Fees | No contract or monthly fees 2.9% + 30 pence fee for UK card transactions 0.5% – 2% cross-border fee + 2.5% currency conversion fee for non-UK card transactions |
Best Suited To | Sophisticated businesses that need near-universal payment system integration and high-volume capabilities. |
Worldpay is a well-regarded online payments provider that processes over a third of UK card payments. Plans are created on an individual basis and account for your sales volume, business sector, and the specifics of the online system you require.
With virtual terminals, Pay by Link, and a variety of other payment solutions on offer, Worldpay can provide a comprehensive package to suit almost any commercial requirements.
| Worldpay | |
| Payment System(s) | Online payment gateway that connects with multiple eCommerce platforms. A variety of business tools come at no extra charge. |
| Functionality Offered | Payment gateway Payment links Virtual terminal Recurring payments |
| Speed of Payments | One to three working days. |
| Integration | Integrated service Self-hosted API available |
| Fees | 30-day rolling contract, or custom agreement Bespoke pricing on application |
| Best Suited To | Businesses that need a robust and comprehensive payment solution and customisation options |
Previously known as Sage Pay, Opayo is an established market player that offers a complete payment solution for online businesses. Merchants can rely on fast remittance times, transparent fees, and a number of business support features including payroll and accounting functionalities.
| Payment System(s) | Complete payment service provision including online payment gateway, processing, and additional business tools. |
| Functionality Offered | Payment gateway Payment links Virtual terminal Recurring payments |
| Speed of Payments | Two working days or less. |
| Integration | Integrated service Self-hosted API available |
| Fees | Bespoke pricing on application. |
| Best Suited To | Businesses that require a single, cohesive payment solution that unites online and in-store channels. |
Square is a ready-to-use payment platform that offers reasonable rates with a full range of free online payment tools. With no contract or monthly fees, Square is ideal for businesses that process a limited number of transactions each month.
The platform handles all payment processing and a simple set-up process, along with rapid transfer speeds.
| Payment System(s) | Online payment gateway that stacks with free eCommerce and business features. |
| Functionality Offered | Payment gateway Virtual Terminal Invoicing Recurring payments Payment links and buy buttons Click & collect |
| Speed of Payments | Funds reach merchant accounts within one to two working days, or immediately with Instant Transfer enabled (1% extra fee applied). |
| Integration | Integrated with Square selling tools, with APIs available to connect with external eCommerce platforms. |
| Fees | No contract or monthly fees except for online store plans 1.9% charged on European card transactions 2.9% charged on non-European card transactions 2.5% charged for virtual terminal transactions and invoices 2% currency conversion charge |
| Best Suited To | Small businesses with low card transaction volumes online or in-store. |
Shopify
offers a comprehensive eCommerce platform, allowing businesses to create their own websites and choose from thousands of integrated apps and plugins. The Shopify payment gateway is easy to set-up, and allows for integration with over 100 other independent payment gateways.
It’s arguably the simplest and most widely known all-in-one eCommerce solution that allows you to create a store, sell your products, and accept payments – all from the same software platform.
| Payment System(s) | Integrated eCommerce payment gateway. |
| Functionality Offered | Ready-to-use payment gateway Website builder Inventory management Data insights Shopify mobile app Abandoned shopping cart recovery and conversion |
| Speed of Payments | Payments for UK-based stores reach accounts within three working days. |
| Integration (Hosted or Self-Hosted with API) | Integrated, with the option to use over 100 independent payment gateways. |
| Fees | Monthly cost based on store plan: Basic Shopify – $29 per month, with 2.2% + 20 pence fee for card transactions and 2.0% fee for use of other payment providers. Shopify – $79 per month, with 1.9% + 20 pence fee for card transactions. Advanced Shopify – $299 per month, with 1.6% + 20 pence fee for card transactions. Monthly charges are made in USD for UK customers so GBP amounts will change with FX rate. |
| Best Suited To | Online businesses that need the full eCommerce package, and those who do not already have an existing website. |
BigCommerce
is a highly customisable eCommerce platform that enables users to create online stores and scale them rapidly. Unlike some other eCommerce providers, BigCommerce does not handle payment services themselves, and instead facilitates full integration with a wide range of online payment systems.
| Payment System(s) | eCommerce site builder that accepts payment gateway integration from numerous payment solutions providers. |
| Functionality Offered | Integration for a huge variety of payment gateways including 2Checkout, Ayden, Amazon Pay, Klarna Payments, and PayPal. |
| Speed of Payments | Dependent on chosen online payment gateway provider. |
| Integration | n/a |
| Fees | Essentials (Hosted) Packages: Standard: $29.95 Plus: $79.95 Pro: $299.95 They offer optional partnerships with Braintree (1.55% – 1.85% + 18p per transaction depending on package) and Barclaycard (1.75% + 15p per transaction). It may be cheaper to integrate with your own payment processor / merchant account. |
| Best Suited To | Businesses that want to create an attractive and feature-rich online storefront, with separate provision for a payment gateway. |
WooCommerce is an intuitive and highly customisable eCommerce site builder that allows users to create an attractive website and choose from over 100 payment gateway providers. With their own WooCommerce Payments option, it’s easy for businesses to set up and start taking payments – although the set-up, design, and development of a WooCommerce eCommerce store can present a steep learning curve.
| Payment System(s) | eCommerce site builder that accepts payment gateway integration from numerous payment solutions providers. |
| Functionality Offered | Full-service eCommerce site builder with own brand payment processing functionality Wide variety of online storefront management tools Payment processing for over 100 international currencies |
| Speed of Payments | Dependent on chosen online payment gateway provider. |
| Integration | Fully integrated plugins from over 100 payment gateway providers. |
| Fees | No set-up costs or monthly fees Costs dependent on chosen payment gateway provider |
| Best Suited To | Merchants with design and development capabilities that require extensive control over their online store. |
Magento is a well-regarded self-hosted eCommerce platform that’s recommended to larger retailers who need extensive customisation options. It’s a powerful system but can be difficult to use without the assistance of an experienced design and development team.
| Payment System(s) | Ecommerce platform built on open source technology which provides online merchants with a flexible shopping cart system. |
| Functionality Offered | Integration for a wide variety of payment gateways including PayPal, Braintree, and dozens of others using extensions available through its marketplace. |
| Speed of Payments | Dependent on chosen online payment gateway provider. |
| Integration | Dependent on chosen online payment gateway provider Self-Hosted with API recommended by Magento |
| Fees | Dependent on chosen online payment gateway provider. |
| Best Suited To | Larger businesses with high revenues that require full control of the customisation of their eCommerce site. |
2Checkout is one of the biggest names in online payment processing, and has a strong track record for providing stellar support for international payments. While the company’s rates may be higher than some providers, they do offer a transparent service that’s easy to set up and use.
As one of the original companies to offer online payment processing, 2Checkout provide a user-friendly service – but it’s worth keeping in mind that the market has expanded significantly since they first started, and other options are available.
| Payment System(s) | Online payment gateway and payment processing. |
| Functionality Offered | Payment Gateway Full PCI compliance Accepts 87 currencies in 15 different languages Advanced fraud protection Easy integration with Shopify, Bigcommerce, and other eCommerce platforms Recurring payments |
| Speed of Payments | Two to five business days using wire transfer Instant checkout to PayPal One business day for pre-paid 2Checkout MasterCards |
| Integration (Hosted or Self-Hosted with API) | Integrated service Self-hosted API available |
| Fees | No set-up or ongoing monthly charge 2Sell Package for global eCommerce – 3.5% + 0.25p per transaction 2Subscribe Package for recurring payments – 4.5% + 0.35 pence per transaction 2Monetize Package for sale of digital goods – 6.0% + 0.45 pence per transaction |
| Best Suited To | SMEs that require international payment support and are not concerned about spending more on transaction fees. |
Authorize.net is one of the oldest names in online payments and still one of the favourite choices for online retailers around the world. Its key selling point is its robust international payments functionality and this makes it another option for retailers selling to multiple countries.
In terms of features and pricing, there isn’t much to complain about but Authorize.net has a mixed bag of reviews from existing and previous customers. The platform is, however, one of the few that can deal with a high volume of overseas transactions.
| Payment System(s) | Integrated payment processing via website, mobile app, or manual transaction. API available via developer centre for full customisation. |
| Functionality Offered | Payment gateway functionality Capable of handling high volumes of overseas transactions Support for a wide variety of global currencies Advanced fraud detection Extensive API customisation options Integrates with a huge range of eCommerce platforms |
| Speed of Payments | Three to five business days depending on merchant services provider. |
| Integration | Integrated service Self-hosted API available |
| Fees | No set-up fees Monthly gateway charge of $25 USD Transaction fees of 2.9% + 0.3 USD per transaction for all-in-one option, or $0.1 per transaction + $0.1daily batch fee for payment gateway only |
| Best Suited To | Businesses that need international payment support for high volumes of overseas transactions. |
Which online payment system is right for your business will depend on a variety of factors including costs, transaction volume, and the products and customers that you deal with.
An integrated solution will suit the vast majority of SMEs, but businesses that require further customisation options may benefit from a self-hosted online payment system developed using an API.
It is often best to avoid online payment systems offered by merchant acquirers like Worldpay, Opayo etc as they don’t have the tech skills to produce the quality of online payment systems provided by the specialists.
Their merchant accounts may well be worth considering due to their fees but we’d advise avoiding using their default online payment systems and just integrate with one of the systems above or another payment gateway.
If you fill in our short form we can help you, find the most suitable online payment system for your business and save you a significant amount in transaction fees.
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