Top 7 Shopify UK Payment Gateways (2024)

Last updated on August 19th, 2024 at 10:19 am

Shopify UK payment gateways are payment processing technologies that enable e-commerce businesses to securely accept credit and debit card payments from customers.

Payment gateways ensure that payment data is securely transmitted from the customer to the merchant, protecting all entities involved.

Shopify UK payment gateways facilitate secure credit and debit card payments when customers make a purchase, and protect both the merchant and customers.

This is because all payment data is communicated securely, and as such, are essential for enabling cashless transactions and securely transmitting payment information for authorization and settlement.

Shopify UK payment gateways include Shopify Payments, PayPal, Worldpay, Stripe, Amazon Pay, Opayo (formerly Sage Pay), and others.

Shopify Payments is Shopify’s native payment gateway, so it doesn’t require third-party integrations.

Similarly, the channel’s user-intuitive interface means customers can quickly pay for products they order.

Shopify Payments allows businesses based in the United Kingdom to accept Visa, Mastercard, American Express, Maestro, Discover, Diners Club, and UnionPay debit and credit cards.

They can also accept Apple Pay, Google Pay, and Shop Pay. Businesses in the United Kingdom can also accept payments using Bancontact and iDEAL.

When choosing a Shopify UK payment gateway, businesses should consider factors such as transaction costs, supported payment methods, security features, and integration with the Shopify platform.

Top 7 Shopify UK Payment Gateways

Here are some popular payment gateways for Shopify stores in the UK:

Shopify Payments

Shopify Payments is a payment gateway that is integrated into the Shopify platform, making it easy for merchants to accept payments online.

Shopify Payments is available to merchants in the UK and supports all major payment methods, including Visa, Mastercard, American Express, Maestro, Discover, Diners Club, and UnionPay debit and credit cards.

Merchants can also accept payments using Apple Pay, Google Pay, and Shop Pay.

Shopify Payments eliminates the need for third-party payment providers or merchant accounts, making it easy for merchants to set up and use.

Shopify Payments also offers customers more flexibility, such as the ability to pay in installments, use one-click checkout, and securely store credit card details for repeat purchases.

Shopify Payments is fully integrated with the Shopify platform, so merchants can manage their payments and orders in one place.

Merchants can view their payment history, issue refunds, and manage chargebacks directly from their Shopify dashboard.

Shopify Payments also integrates with other Shopify features, such as Shopify POS, making it easy for merchants to accept payments in person.

Shopify Payments charges transaction fees based on the merchant’s Shopify plan.

For Basic Shopify, Shopify, and Advanced Shopify plans, the transaction fees are 2.2%, 1.9%, and 1.6%, respectively, plus 20p per transaction.

Merchants on the Shopify Plus plan pay no transaction fees except for merchants in Belgium and Sweden.

Customer reviews and ratings for Shopify Payments are generally positive, with many merchants praising its ease of use, reliability, and integration with the Shopify platform.

Some merchants have reported issues with chargebacks and account freezes, but these are relatively rare.

PayPal

PayPal is another one of the top Shopify UK payment gateway that offers a range of payment processing services, including PayPal Payments Pro and Payflow Payment Gateway.

PayPal Payments Pro allows merchants to accept credit cards, PayPal Credit, and PayPal, with fully customizable integration and APIs.

It provides detailed order management and can be configured to work across devices.

Additionally, it offers a scalable checkout solution for web and mobile, as well as the ability to add billing or recurring payments to the checkout and set up and send custom invoices.

To integrate PayPal with Shopify, merchants can set up PayPal Express Checkout from the Payments section of their Shopify dashboard.

Once set up, customers can pay through credit cards, bank accounts, buyer credit, or PayPal account balances.

PayPal Express Checkout also allows customers to pay without a PayPal account by activating guest payments.

PayPal transaction fees vary depending on the payment gateway service used.

For PayPal Payments Pro, transaction fees are 2.9% + $0.30 per transaction, while Payflow Payment Gateway fees start at $0.10 per transaction.

PayPal also charges additional fees for chargebacks, refunds, and other services.

Customer reviews and ratings for PayPal are generally positive, with many merchants praising its ease of use, reliability, and integration with the Shopify platform.

Some merchants have reported issues with chargebacks and account freezes, but these are relatively rare.

Worldpay

Worldpay is a large payment processor that offers a variety of payment solutions for businesses.

It’s a good option for businesses that need to accept payments from customers in a variety of countries and currencies.

Worldpay’s fees for Shopify stores in the UK can vary depending on several factors, including:

Transaction type:

Card payments: These typically incur a percentage fee (around 2.75%) and a fixed transaction fee (around 20p).
International payments: Additional fees may apply depending on the currency and location.
ACH payments: Fees can be lower than card payments, but vary based on the specific type of ACH payment.

Monthly volume:

Worldpay offers tiered pricing based on your monthly transaction volume. Higher volume generally brings lower per-transaction fees.
Some plans have monthly minimum fees regardless of transaction volume.

Contract length:

Shorter contracts often have higher fees compared to longer contracts with fixed rates.

Industry and risk:

Higher-risk industries may face additional fees or be ineligible for certain services.

Additional features:

Using features like fraud prevention or tokenization might incur additional charges.

Opayo (formerly Sage Pay)

Sage Pay is a popular payment gateway in the UK.

It’s a good option for businesses that want to accept payments from customers in the UK and Europe.

Sage Pay can be expensive, and you may need to sign up for a long-term contract.

Opayo (formerly Sage Pay) charges a $25 per month gateway fee and a 2.9% + $0.30 per transaction processing fee for users who pick the payment gateway and a merchant account.

However, the pricing structure of Opayo may vary, and merchants are advised to check the specific pricing for their region and business type directly with Opayo.

Stripe

Stripe is a popular payment processor that’s used by businesses of all sizes.

It’s a good option for businesses that want a simple and easy-to-use payment gateway.

Charges a flat fee per transaction, with additional costs for extra services like international payments or currency conversion.
Standard pricing rate of 2.9% + 30¢ per successful card charge.
Offers a more flexible payment solution, working for both e-commerce and in-person transactions

Clearpay

Clearpay is a “buy now, pay later” service that allows consumers to pay for their purchases in four interest-free installments, with the first installment paid at the time of purchase and the remaining three paid every two weeks.

Late fees apply for missed payments, with a £6 late fee for each late installment and a further £6 if it remains unpaid after 7 days.

Late fees are capped at £24 or 25% of the order value, whichever is less.

For merchants, Clearpay offers a layer of protection through a verification process that considers various factors before approving purchases, helping to reduce chargebacks and nonpayment costs.

Additionally, the Afterpay processing fee for merchants is 6% + 30¢ per Afterpay order, and sellers using Afterpay get paid the full amount at the time of purchase, minus the processing fee on the total order.

Klarna

Klarna is another popular “buy now, pay later” (BNPL) service, that offers various payment plans for customers, including the option to pay in four installments or within 30 days, with no interest if the payment is made within the set time.

However, late or missed payments may incur a fee of up to $7, and customers opting for formal financing may be subject to interest charges of up to 19.99% APR.

For Shopify merchants, Klarna charges a $0.30 transaction fee and variable fees ranging from 3.29% to 5.99% of the transaction total.

Late payments and unpaid debts from customers may result in fees, but there is no annual fee for using Klarna.

The processing rates for merchants are determined during onboarding and outlined in the contract, typically ranging from 3.29%–5.99% + 30 cents, depending on the size and processing volume of the business.

How to Pick The Best Payment Gateway

Picking the best payment gateway for your Shopify store in the UK involves considering several factors beyond just popularity. Here’s a breakdown to help you choose the right one:

1. Cost:

Transaction fees: Most gateways charge per transaction, ranging from flat fees to percentages. Consider your average transaction value and volume to estimate costs.
Monthly fees: Some gateways have monthly fees regardless of transactions, often suitable for high-volume businesses.
Setup fees: Look for waived or low setup fees, especially for startups.

2. Payment methods:

Essential: Visa, Mastercard, Maestro, Discover should be covered.
Additional: Consider Apple Pay, Google Pay, Shop Pay, international options based on your audience.
Emerging: Buy-now-pay-later (BNPL) options like Clearpay and Klarna might be relevant.

3. Security:

PCI compliance: All reputable gateways ensure this, but double-check.
Fraud prevention: Look for features like fraud detection and chargeback management.
Data security: Understand how customer data is stored and protected.

4. Integration:

Ease of setup: Check for simple integration with Shopify and any additional platforms you use.
Customization: See if you can customize the checkout experience for branding and user flow.
Technical support: Ensure readily available support for troubleshooting and integration issues.

5. Other factors:

Reputation: Research the gateway’s reliability, uptime, and customer reviews.
Scalability: Choose a gateway that can grow with your business volume.
Additional features: Consider value-added services like invoicing, subscriptions, or analytics.

Based on these points, here’s a revised analysis of the gateways we mentioned:

Shopify Payments: Easy setup, wide payment options, but higher fees for high-risk products.

PayPal: Popular, international reach, but separate account needed and potential fees.

Worldpay: Comprehensive solutions, global reach, but potentially expensive and long contracts.

Sage Pay: UK-focused, good for European customers, but similar cost considerations to Worldpay.

Stripe: Simple and user-friendly, but fees could be high for low-volume businesses.

Clearpay/Klarna: Attractive for BNPL, but limited product eligibility and transaction fees apply.

Remember, the best gateway depends on your specific needs.

Analyze your priorities, compare costs and features, and read reviews for informed decision-making.

How to set up a payment gateway for Shopify UK

To set up a payment gateway for Shopify in the UK, you can follow these general steps:

Shopify Payments Setup: If you’re using the Shopify platform, you’re automatically set up to access its payment gateway, Shopify Payments. With Shopify Payments, you can quickly set up your payment gateway without the need for extra complicated setup. You only need to supply your bank details, and Shopify takes care of the rest.
Third-Party Integration: If you prefer to use a third-party payment gateway, Shopify allows you to integrate with over 100 other payment providers around the world. You can explore the top Shopify UK payment solutions, such as PayPal, Worldpay, Stripe, Amazon Pay, and others, and choose the one that best suits your business needs.
Considerations: When choosing a payment gateway, consider factors such as transaction fees, supported payment methods, security features, and integration with the Shopify platform. If you need help integrating any third-party payment gateway on your Shopify store, you can reach out to experts for assistance.

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If you follow these steps and consider the available options, you can set up a reliable payment gateway for your Shopify store in the UK, ensuring secure and seamless transactions for your customers.