How to choose the right payment processing provider

If you want to grow your business, you’ll need a suitable payment processing provider by your side.

Payment processing providers don’t just handle transactions, they can directly impact the customer experience, too. Choose the wrong one and your customer might abandon their purchase resulting in lost sales. But get it right and your payment processor could unlock more revenue, valuable insights, and help protect against fraud and security risks as your business scales.

Key factors when choosing a payment processing provider

Whether you’re a new or well-established business, it’s important to ask yourself the right questions. Your ideal payment solution will depend on a few factors, including:

1. What you’re selling – do you sell online or in-person? Do you offer one-off or subscription-based products, or both?

2. How big is your business and what're your expansion plans?

3. Where are your customers, what digital payment options are available to them and which do they prefer to use? 

4. How robust and secure the system is – will it protect your business against fraud? Is the payment gateway easy for your customers to use?

5. The pricing structure* – what are the transaction fees for each payment processing provider?

6. What specific features and integrations your business and customers need? For example, buy now pay later (BNPL) options or reporting tools.

7. How easy is the system to use and integrate with existing business tools, like an accounting software?

8. What kind of support is offered to you and your customers?

The good news is there’s plenty of digital payment options to choose from. The bad news is it can take a while to narrow them down. 

To help you make the right choice for your customers and business, check out our payment processing provider comparison below.

A payments solution comparison

Let's take a look at each provider in a little bit more detail:

1. Stripe

Overview: A fully integrated suite for accepting payments online and in-person using mainly credit and debit cards in multiple currencies. Also supports other payment methods like buy now, pay later.

Features and integrations: Online and in-person payment processing, recurring subscription payments, one-off invoicing, fraud prevention, and tools for platforms and marketplaces.

Pricing: 

• Transaction fees: 1.5% plus 20p per card transaction (UK), fees vary based on payment method and country

• Fee-free period: No

• Monthly fees: None

• Pay-as-you-go pricing: Yes

• Additional fees: Advanced features, chargebacks

Typical use cases: Startups and tech companies, including subscription-based businesses (SaaS platforms, gyms, etc.), retail, e-commerce, and online marketplaces.

2. Adyen

Overview: Provides one solution to accept payments and control finances on a global scale.

Features and integrations: Online, in-person or cross-channel payment processing, fraud prevention, data-driven business insights, and physical or virtual cards for corporate expense management.

Pricing:

• Transaction fees: 11p plus a fee determined by the payment method per transaction (UK)

• Fee-free period: No

• Monthly fees: None

• Pay-as-you-go pricing: No - depends on industry or business model

• Additional fees: Cross-border fees, advanced features, chargebacks, buy now pay later options

Typical use cases: Large e-commerce platforms, multi-channel retail, subscription services.

3. PayPal

Overview: Offers a global payment solution for businesses to accept payments online and in-person, one of the most well-known payment processing brands.

Features and integrations: Tools for online checkouts, recurring payments, one-off invoicing and point-of-sale (POS) systems, including various payment methods like “Pay in 3” and QR codes.

Pricing: 

• Transaction fees: 1.2% plus 30p (UK), fees vary based on payment method and country

• Fee-free period: No

• Monthly fees: None

• Pay-as-you-go pricing: Yes

• Additional fees: Advanced features, chargebacks

Typical use cases: Small-to-medium-sized businesses, freelancers, e-commerce sites.

4. GoCardless

Overview: Helps businesses to collect one-off and recurring bank payments using methods like Direct Debit and open banking. Covers international payments in over 30 countries.

Features and integrations: Automated payment collection for subscriptions and one-off products or services, instalment payments, failed payment retries, fraud prevention, can integrate with 350+ partner apps from accountancy software to sports management.

Pricing: 

• Transaction fees: 1% plus 20p (UK), fees vary by country but capped at £4 (domestic only)

• Fee-free period: 90 days

• Monthly fees: None

• Pay-as-you-go pricing: Yes

• Additional fees: Advanced features, chargebacks

Typical use cases: Subscriptions or memberships (gyms, sports clubs, SaaS platforms, streaming services, etc.), professional services (accountants, consultants, etc.), utility providers, educational institutions and charities.

5. Braintree

Overview: An integrated platform owned by PayPal which supports a wide range of global and local payment methods including credit cards, debit cards and PayPal.

Features and integrations: Flexible payment options – including digital wallets, robust payment gateway, fraud prevention.

Pricing: 

• Transaction fees: 1.9% plus 20p per transaction (UK), transaction fees vary by payment method and country

• Fee-free period: No

• Monthly fees: None

• Pay-as-you-go pricing: Yes

• Additional fees: Chargebacks, card transactions issues outside the UK

Typical use cases: Online marketplaces, mobile apps, e-commerce. 

6. Square

Overview: Offers in-person and online payment solutions, giving customers the option to pay by chip and PIN, mobile or contactless card payments. 

Features and integrations: Point-of-sale (POS) solution for in-person payments, inventory management, and customer engagement.

Pricing: 

• Transaction fees: 1.75% per card transaction (UK), 1.4% plus 25p per online transaction (UK), fees vary based on payment method and country

• Fee-free period: No

• Monthly fees: No

• Pay-as-you-go pricing: Yes

• Additional fees: Chargebacks, manually entered card details, advanced features and packages, invoices, buy now pay later options

Typical use cases: Brick-and-mortar retailers, food and beverage businesses.

No one-size-fits-all, but we can help

Unfortunately, there’s no silver bullet when it comes to choosing the right payment partner, but assessing your specific business needs is a good place to start.

Factors like what you’re selling, your business size and growth plans, your customers’ location, security requirements, and the system’s pricing structure will all have a big influence on the right choice for you, your customers, and ultimately your future success.