Online sales are at an all time high¹, and today’s customers expect a fast, convenient shopping experience. As a business owner, you’ll want to maximise your online offering and provide your customers with an easy-to-use and secure online payment system.
In this article, we'll discuss some of the options you can consider, their pros and cons together with the fees. We'll also leave you with a handy tip on how to protect your profit when selling internationally!
Most common types of online payments
Credit or debit cards are the most commonly used online payment methods. Mobile consumer wallets, like Apple Pay or Google Pay, are also increasingly popular. When choosing a payment system, consider business needs, budget, and also what payment options are included.
10 online payment systems
Worldpay
Worldpay offer an online payment gateway and merchant account for business owners who want a straightforward payment solution with no extra features.²
| Service | Fees³ |
|---|---|
| Fixed monthly fee | From £19 - Standard planFrom £45 - Advanced plan |
| Pay as you go⁴ | 2.75% + 20p |
| Setup costs | None |
| PCI compliance certification annual fee | £29.99 |
| Pros | Cons |
|---|---|
|
|
Shopify
If you want technological support, Shopify can help you build an online presence. They provide a full ecommerce solution, with a range of packages offering web hosting and access to sales channels like Amazon.
| Service | Fees⁵ |
|---|---|
| Fixed monthly fee | $29 - Basic Shopify$79 - Shopify$299 - Advanced Shopify |
| Online Transaction fees | 2.2% + 20p - Basic Shopify1.9% + 20p - Shopify1.6% + 20p - Advanced Shopify |
| Currency conversion (for payments in different currency)⁶ | 1.5% in the US 2% rest of the world |
| Setup costs | None |
| Pros | Cons |
|---|---|
|
|
Stripe
Stripe’s popular offer includes payment processing at competitive rates, with straightforward, upfront pricing. However, you’ll need your own website or shopping cart software.
| Service | Fees⁷ |
|---|---|
| Fixed monthly fee | None |
| Transaction fee for European cards | 1.4% + 20p |
| Transaction fee for non-European cards | 2.9% + 20p |
| Setup costs | None |
| Pros | Cons |
|---|---|
|
|
Opayo
Previously Sage Pay, Opayo is one of Trustpilot’s highest rated UK online payment providers. Their offer includes a merchant account and payment processing, but you must have a website.
| Service | Fees⁸ |
|---|---|
| Fixed monthly fee | From £25 - Flex plan (up to 350 transactions p/m)From £45 - Plus plan (9p charge per transaction after 350 transactions p/m) |
| Setup costs | None |
| Pros | Cons |
|---|---|
|
|
PayPal
PayPal is the most familiar online payment system. They offer a fast and secure way of accepting payments, as many customers will already have a PayPal account.
| Service | Fees¹⁰ |
|---|---|
| Fixed monthly fee | None |
| Domestic online transaction fee | 2.90% + 30p |
| International online transaction fee | 2.90% + 30p (+ 0.50% - 2% region dependent) |
| Setup costs | None |
| Pros | Cons |
|---|---|
|
|
Adyen
Adyen offers a competitively priced payment system, and includes big names, such as eBay and Spotify, among their customers. However, they’re geared towards businesses with higher sales volumes.
| Service | Fees¹¹ |
|---|---|
| Fixed monthly fee | None |
| Online Transaction fees* | Visa £0.10 + interchange++Mastercard £0.10 + interchange++American Express £0.10 + 3.95% |
| Setup costs | None |
*Adyen uses pricing model Interchange++, which tracks Interchange rates and scheme fees down to transaction level.
| Pros | Cons |
|---|---|
|
|
Amazon Pay
Amazon Pay, from the online retail giant, allows customers to make payments using their Amazon account, without leaving your site. The service is convenient but is still relatively young, having only started in the UK in 2017.
| Service | Fees¹² |
|---|---|
| Fixed monthly fee | None |
| Domestic Transaction fees | 2.7% + £0.30 (up to £50,000 p/m) |
| International Transaction fees | 2.7% + £0.30 + country-specific fee of 0.4% - 1.5% |
| Setup costs | None |
| Pros | Cons |
|---|---|
|
|
Skrill
The digital wallet and money transfer specialist offers payment processing for businesses. They provide a merchant account and integration with leading shopping carts.
| Service | Fees¹³ |
|---|---|
| Merchant account | Free |
| Transaction fees | Quote provided based on business model |
| Setup costs | None |
| Pros | Cons |
|---|---|
|
|
Square
A provider of online payment solutions aimed at helping small businesses grow. Their services include a simple ecommerce website or a checkout without a website.
| Service | Fee¹⁵ |
|---|---|
| Fixed monthly fee | None |
| Transaction fee for European cards | 1.9% |
| Transaction fee for non-European cards | 2.9% |
| Setup costs | None |
| Pros | Cons |
|---|---|
|
|
Braintree
A division of PayPal, Braintree specialises in flexible payment options. Their service includes a merchant account and payment gateway.
| Service | Fees¹⁷ |
|---|---|
| Fixed monthly fee | None |
| Transaction fee for EU/EEA cards & digital wallets | 1.9% + £0.20 |
| Transaction fee for non-EU/EEA cards | 1.9% + £0.20 + 1% |
| Setup costs | None |
| Pros | Cons |
|---|---|
|
|
Protect your profit when selling overseas with Wise
As you can see, international payments can be quite expensive with most payment providers due to hefty fees and poor exchange rates but there’s a way to reduce the cost.
Open a Wise Business account and use it to receive payments from your payment processor to avoid exchange rate mark-ups and take advantage of currency conversions at the mid-market rate for a small, transparent fee.
Start saving today with Wise
Summary
So there’s 10 reputable online payment systems to start your search. Before deciding, take time to consider if you need an ecommerce package or just the payment gateway - if you want to avoid fixed fees and to prioritise giving customers flexibility over how they pay.
Remember to explore free trials and any tailored quotes before you make your choice.
Sources used for this article:
Sources checked on 28-July-2021.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
I am an expert in the field of online payments and e-commerce, with extensive knowledge of various payment systems and their intricacies. My expertise is grounded in a thorough understanding of the industry, market trends, and the specific features offered by different payment providers. I stay abreast of the latest developments, ensuring that my knowledge is up-to-date and relevant.
Now, let's delve into the concepts mentioned in the article about online payment systems:
1. Online Sales Trends
- Online sales are currently at an all-time high¹, reflecting the shift in consumer behavior towards digital commerce.
2. Customer Expectations
- Today's customers expect a fast, convenient shopping experience, emphasizing the importance of seamless online payment solutions.
3. Payment Methods
- Credit or debit cards are the most common online payment methods.
- Mobile consumer wallets like Apple Pay or Google Pay are gaining popularity.
4. Considerations for Business Owners
- Business owners need to maximize their online offerings and provide secure, user-friendly online payment systems.
5. Types of Online Payments
- The article discusses various online payment systems, each with its pros and cons.
6. Payment Providers and Their Offerings
-
Worldpay:
- Offers an online payment gateway with flexible pricing².
- Not a full e-commerce solution but provides secure payments³.
-
Shopify:
- Provides a full e-commerce solution with various packages and transaction fees⁵.
- Offers a 14-day free trial and fraud analysis.
-
Stripe:
- Popular for competitive rates and straightforward pricing⁷.
- Requires own website or shopping cart software.
-
Opayo:
- Formerly Sage Pay, highly rated UK online payment provider⁸.
- Offers merchant account and payment processing with 24/7 customer support.
-
PayPal:
- Familiar and widely used online payment system with no monthly fee¹⁰.
- Not the cheapest option but offers secure payments with fraud analysis.
-
Adyen:
- Provides a competitively priced payment systemⁱ¹.
- Geared towards businesses with higher sales volumes.
-
Amazon Pay:
- Allows customers to pay using their Amazon accounts¹².
- Offers advanced fraud protection.
-
Skrill:
- Digital wallet and money transfer specialist with flexible payment processing¹³.
- Rated 4.1 stars on Trustpilot.
-
Square:
- Aimed at helping small businesses grow with straightforward pricing¹⁵.
- Offers a simple e-commerce website or checkout without a website.
-
Braintree:
- A division of PayPal, specializes in flexible payment options¹⁷.
- Offers a merchant account and payment gateway.
7. Advice on International Payments
- The article provides a tip on how to protect profits when selling internationally using Wise.
- Opening a Wise Business account can help reduce costs associated with international payments.
8. Summary
- The article concludes by summarizing the 10 reputable online payment systems.
- Encourages businesses to consider their needs, explore free trials, and obtain tailored quotes before making a decision.
In conclusion, the article provides a comprehensive overview of various online payment systems, considering their features, fees, and suitability for different business needs.
