Save Fees & Boost Sales Post-Brexit
The UK’s e-commerce market is worth £768 billion (Statista, 2025), but Brexit and VAT changes have complicated cross-border payments. Choosing the right payment gateway can save your business £1,000s annually while ensuring compliance with the Financial Conduct Authority (FCA).
We’ve analyzed 20+ gateways to identify the top 5 payment processors in the UK for 2025, focusing on fees, security, and post-Brexit adaptability.
1. Stripe: The Global Giant (Now VAT-Optimized for the UK)
Best For : Startups, SaaS platforms, and businesses selling in Europe.
Why Stripe Rules the UK Market
Stripe dominates with 135+ currency support and seamless EU-UK transactions. Post-Brexit, its VAT MOSS compliance automates tax calculations for cross-border sales.
Key Features
- Local Acquiring : Process GBP payments at 2.4% + £0.20 (cheaper than USD conversions).
- Developer Tools : Build custom checkouts with APIs for Shopify, WooCommerce, and Laravel.
- Fraud Prevention : Stripe Radar blocks 85% of fraudulent transactions in the UK.
Pricing
- Standard : 2.4% + £0.20 (in-person) / 2.9% + £0.20 (online).
- Custom Plans : Available for businesses processing >£50k/month.
Case Study :
London-based fintech Revolut used Stripe to expand into 12 EU countries while managing VAT compliance automatically.
2. PayPal UK: The Trustworthy Workhorse (But Watch the Fees)
Best For : Freelancers, eBay sellers, and small businesses prioritizing speed.
PayPal’s UK Quirks
With 25 million UK users , PayPal is convenient but costly for high-volume sellers:
Pros
- Instant Setup : Start accepting payments in minutes.
- Seller Protection : Covers physical goods and eligible digital products.
- Invoicing : Send VAT-compliant invoices with auto-reminders.
Cons
- Fees : 3.4% + £0.35 per transaction (vs. Stripe’s 2.9% + £0.20).
- Currency Conversion : 4.5% markup for GBP to EUR/USD.
Pro Tip : Use PayPal for UK-only sales but pair it with Stripe for international transactions.
3. Sage Pay (Opayo): The Local Hero (Now FCA-Regulated)
Best For : SMEs and retailers needing PCI DSS compliance.
Why Sage Pay Stands Out
Sage Pay (rebranded as Opayo ) processes £30 billion annually for UK businesses. Its FCA authorization ensures GDPR and PSD2 compliance.
Key Features
- All-in-One Platform : Manage payments, invoices, and payroll.
- PCI Compliance : Built-in tools to avoid £10k+ fines.
- Local Support : UK-based phone support (8am–8pm GMT).
Pricing
- Online Payments : 2.5% + £0.30 per transaction.
- In-Person : 1.7% + £0.10 (via Sage Pay card reader).
User Review :
“Sage Pay’s integration with Xero saved us 10 hours/month in accounting.”
— James Carter, Owner of a Manchester Retail Chain
4. GoCardless: The Direct Debit Specialist
Best For : Subscription businesses and B2B companies.
Why GoCardless Is a Game-Changer
GoCardless powers 80,000+ UK businesses , including The Guardian and TripAdvisor, with its Direct Debit network.
Features You’ll Love
- Recurring Payments : Automate subscriptions with 97.3% success rate.
- Lower Fees : 1% per transaction (capped at £2) for B2B payments.
- Instant Bank Pay : Faster than traditional Direct Debit (settles in 1–3 days).
The Catch
- No Card Payments : Pair with Stripe/PayPal for credit/debit transactions.
5. Worldpay (FIS): The Enterprise Powerhouse
Best For : Large retailers and multinationals.
Worldpay’s UK Dominance
Worldpay processes 40% of UK card transactions , serving giants like Marks & Spencer and ASOS.
Why Big Brands Choose Worldpay
- Omnichannel Support : Sync online, in-store, and mobile payments.
- Dynamic Currency Conversion : Boost EU sales with real-time GBP pricing.
- Chargeback Protection : 24/7 fraud monitoring team.
Pricing
- Custom Quotes Only : Expect to pay 1.9%–2.5% + fees (negotiable for high volume).
Comparison Table: UK Payment Gateways
| Gateway | Transaction Fee | Multi-Currency | VAT Compliance | Best For |
| Stripe | 2.4%–2.9% + £0.20 | 135+ | Automated | Startups, global businesses |
| PayPal | 3.4% + £0.35 | 25+ | Manual | Freelancers, quick setups |
| Sage Pay | 2.5% + £0.30 | GBP only | Built-in | SMEs, retail |
| GoCardless | 1% (capped £2) | GBP only | Yes | Subscriptions, B2B |
| Worldpay | Custom | 120+ | Yes | Enterprises, omnichannel |
How to Choose Like a Pro: 5 UK-Specific Tips
- Post-Brexit VAT : Use Stripe or Sage Pay for automated MOSS filings.
- Chargeback Risks : Worldpay or Opayo for PSD2 compliance.
- Subscription Models : GoCardless reduces failed payments by 40%.
- Local Support : Sage Pay offers UK-based phone help.
- Cost Efficiency : Stripe saves £100s monthly vs. PayPal for SaaS.
Final Verdict: Who Wins in the UK?
- Best All-Rounder : Stripe (global reach + VAT tools).
- Budget Pick : Sage Pay (transparent pricing for SMEs).
- Enterprise Choice : Worldpay (omnichannel power).
Action Step :
Test Stripe + GoCardless for a mix of global card payments and Direct Debit.
