When you’re setting up an online shop, one of the most important decisions is how you’ll take payments. The payment provider you choose affects your customers’ experience, your running costs, and even your cashflow.
Below we’ll compare seven of the most popular providers used by small businesses in the UK: Stripe, WooPayments, PayPal, Square, WorldPay/Opayo, Klarna, and GoCardless.
Payment Provider Costs at a Glance
| Provider | Transaction Fee (UK) | Setup Fee | Monthly Fee | Free Transactions? |
|---|---|---|---|---|
| Stripe | ~1.5% + 20p (UK cards); 2.9% + 20p (non-EU); +2% FX on conversions | None | None | No |
| WooPayments | Similar to Stripe; pay-as-you-go | None | None | No |
| PayPal | 2.9% + 30p (UK); ~4.19% + 30p (international) | None | None | No |
| Square | 1.4% + 25p (UK cards); 2.5% + 25p (international) | None | None | No |
| WorldPay / Opayo | From 1.3% + 20p (eCommerce plan) or 1.5% + £19.95/month (Simplicity plan) | None | £0–£19.95/month (plan dependent) | No |
| Klarna | 1.65% + 20p (“Pay Now”); 2.9% + 20p (“Pay Later”); 4.99% + 20p (“Pay Over Time”) | None | None | No |
| GoCardless | 1% + 20p (UK, capped £4); 1.25% + 20p (advanced, capped £5); 2.25% + 20p (international) | None | None | Free for first 90 days |
Provider Breakdowns
Stripe
Best for: Flexibility, subscriptions, international sales.
Reliable, developer-friendly, and widely supported. Handles everything from one-off card payments to recurring billing.
- Pros: No setup/monthly fees, competitive rates, excellent for subscriptions.
- Cons: FX conversions add 2%; non-EU cards are pricier.
WooPayments
Best for: Simplicity and a built-in WooCommerce experience.
Made by the WooCommerce team, this keeps everything inside WordPress.
- Pros: Easy to set up, fully integrated, no extra plugins.
- Cons: Fewer advanced features than Stripe, international fees vary.
PayPal
Best for: Customer trust and global reach.
PayPal is familiar to customers and can increase checkout conversions.
- Pros: Trusted, fast checkout, easy integration.
- Cons: Higher fees, off-site checkout flow.
Square
Best for: Businesses selling both online and in person.
Perfect if you use card readers or POS alongside WooCommerce.
- Pros: Unified sales reporting, no monthly fees, free POS tools.
- Cons: Not as feature-rich for online-only shops.
WorldPay / Opayo
Best for: Established businesses and higher volumes.
Longstanding UK provider with competitive eCommerce rates.
- Pros: Trusted, low fees at scale, tailored pricing options.
- Cons: Contracts (often 18 months), possible PCI fees, more complex setup.
Klarna
Best for: Boosting sales with Buy Now, Pay Later options.
Increases average order value by giving customers flexible payment plans.
- Pros: Popular BNPL, can improve conversion rates.
- Cons: Higher fees than standard gateways; not all customers want BNPL.
GoCardless
Best for: Recurring payments and Direct Debit.
Ideal for memberships, subscriptions, and regular invoicing.
- Pros: Low fees, great for subscriptions, free 90-day trial.
- Cons: Slower settlement, no instant one-off card payments.
Which One Should You Choose?
- Want the easiest all-rounder? Start with WooPayments.
- Need flexibility and subscriptions? Go with Stripe.
- Want customer trust and global reach? Add PayPal (often as a secondary option).
- Selling online and in person? Choose Square.
- Running an established or high-volume store? Look at WorldPay / Opayo.
- Want to increase order value? Offer Klarna as an extra option.
- Running a subscription or membership model? Use GoCardless.
Final Word
There’s no single “best” provider—many businesses use a combination (for example, Stripe or WooPayments plus PayPal) to give customers choice. The right fit depends on how you sell, your budget, and what your customers expect at checkout.