Best Payment Processor for UK Small Business 2026

/ 02

How we picked

Our ranking uses these criteria — the things that actually matter to a UK small business, not vanity feature counts:

• • UK transaction fees
• • Settlement speed
• • Checkout conversion
• • Ease of integration
• • Recurring / subscription support

/ 03

#1 · Stripe

The default for online payments. Pricing: 1.5% + 20p per transaction.

Best for: Any UK business taking online payments.

• • Pros: Excellent developer tools, Fast settlement, Works globally, Strong fraud prevention
• • Cons: Slightly higher fees than some rivals, Account freezes can happen

/ 04

#2 · SumUp

Best for in-person and mobile payments. Pricing: From 1.69% per transaction.

Best for: Trades, market stalls, and face-to-face sales.

• • Pros: Simple hardware, No monthly contract, Great for trades and events
• • Cons: Online checkout is weaker, Limited customisation

/ 05

#3 · Square

Strong all-rounder, especially for retail. Pricing: 1.75% card present, 2.5% online.

Best for: Retailers and hospitality businesses.

• • Pros: Free POS software, Good ecommerce integration, Fast setup
• • Cons: Online fees higher than Stripe, UK support can be slow

/ 06

#4 · PayPal

Customers trust it, fees are higher. Pricing: 2.9% + 30p per transaction.

Best for: Businesses whose customers prefer PayPal.

• • Pros: Huge trust and recognition, Buyer protection, Easy setup
• • Cons: Higher fees, Account holds are common, Checkout UX is dated

/ 07

#5 · GoCardless

Best for Direct Debit and subscriptions. Pricing: 1% + 20p per transaction, capped at £4.

Best for: Subscriptions, memberships, and B2B invoicing.

• • Pros: Perfect for recurring revenue, Low fees for B2B, Reliable
• • Cons: Not for instant card payments, Slower for new customers

/ 08

Our winner

Stripe for online. SumUp for in-person. GoCardless for subscriptions.

Every business is different — the "best" tool depends on your specific setup, budget, and where you're headed. If you want a second opinion for your own context, we're around.

/ FAQs

Common questions