Choosing the right payment merchant for your online shop can feel overwhelming, especially when you're trying to balance costs, ease of use, reliability, and customer experience.
Here’s a comparison of some of the most popular payment gateways used in the UK for e-commerce websites, including Stripe, PayPal, Square, Klarna, and traditional merchant accounts. All of these work with WordPress, especially if you're using WooCommerce.
Jump down to the comparison table
Stripe
Best for: Online shops that want flexible, modern payment processing
Fees: 1.5% + 20p per transaction (UK cards); higher for international
Setup: Easy to integrate with platforms like WooCommerce and Shopify
User Experience: Clean and seamless checkout experience
Payouts: Typically 3–5 working days
Extras: Supports subscriptions, Apple Pay, Google Pay, and invoicing
✅ Pros:
- Developer-friendly
- Transparent pricing
- Customisable
- Trusted worldwide
❌ Cons:
- No built-in dashboard for non-technical users
- Can be complex if you don’t have developer support
PayPal
Best for: Shops that want brand recognition and trust at checkout
Fees: 2.9% + 30p per transaction (standard rate); discounts for high volume
Setup: Quick and easy with most platforms
User Experience: Redirects to PayPal site unless you pay extra for integrated checkout
Payouts: Instant to your PayPal account; transfer to bank may take 1–2 days
Extras: Offers Pay Later (interest-free payments), dispute management
✅ Pros:
- Well-known and trusted by customers
- Fast setup
- Includes buyer/seller protection
❌ Cons:
- Higher fees than Stripe
- Can be clunky if it takes customers away from your site
- Account freezes can happen during disputes
Square
Best for: Businesses with both online and in-person sales
Fees: 1.4% + 25p for UK cards (online); 1.75% for in-person
Setup: Simple, with its own free eCommerce tools
User Experience: Clean and modern checkout
Payouts: Next business day
Extras: Inventory management, POS system, email marketing
✅ Pros:
- Great for bricks-and-clicks businesses
- Transparent fees
- Useful dashboard and tools
❌ Cons:
- Less customisable than Stripe
- Slightly limited integrations outside its own ecosystem
Klarna
Best for: Shops that want to offer 'Buy Now, Pay Later' options
Fees: Vary depending on products and country (approx. 2.49% + 20p)
Setup: Works with Shopify, WooCommerce, Wix, and more
User Experience: Offers interest-free instalments or deferred payments
Payouts: You get paid in full, Klarna takes on the risk
Extras: Appeals to younger shoppers and boosts conversions
✅ Pros:
- Boosts average order value
- Klarna handles customer credit checks and risk
- Improves checkout flexibility
❌ Cons:
- Slightly higher fees
- Can lead to customer over-spending or returns
- Not everyone qualifies as a merchant
Traditional Merchant Accounts (e.g. Worldpay, Barclaycard, Opayo)
Best for: Large businesses or those needing advanced features
Fees: Usually a combination of monthly fees + transaction fees (negotiable)
Setup: More paperwork, may take longer to set up
User Experience: Integrated checkout options vary by provider
Payouts: Typically 2–5 working days
Extras: Fraud prevention, detailed reporting, account manager
✅ Pros:
- Potentially lower rates at higher volumes
- Good for businesses that need extra support
- Offers full merchant services and fraud tools
❌ Cons:
- More complex to set up
- Contracts and minimum terms
- May not be cost-effective for small shops
What’s the Best Option?
It depends on your business needs:
- Just starting out? Go for Stripe or PayPal for quick, easy setup
- Selling both online and in person? Square offers great value and tools
- Want to increase conversions? Klarna can help with flexible payments
- High volume and custom needs? Consider a traditional merchant account
Comparison Table
| Payment Merchant | Best For | Fees | Payouts | Pros | Cons |
|---|---|---|---|---|---|
| Stripe | Flexible, modern payment processing | 1.5% + 20p (UK cards); higher for international | 3–5 working days | Developer-friendly, transparent, customisable, trusted | Requires technical setup, no built-in dashboard |
| PayPal | Brand recognition and trust | 2.9% + 30p (standard); discounts for volume | Instant to PayPal; 1–2 days to bank | Well-known, fast setup, buyer protection | Higher fees, redirects away from site, potential freezes |
| Square | Online and in-person sales | 1.4% + 25p (online); 1.75% in-person | Next business day | Great for bricks-and-clicks, useful dashboard | Less flexible, fewer external integrations |
| Klarna | Buy Now, Pay Later options | Approx. 2.49% + 20p | Paid in full up front by Klarna | Boosts conversion, Klarna handles risk | Higher fees, not all merchants qualify |
| Traditional Merchant Accounts | Advanced features and high volume | Monthly + transaction fees (negotiable) | 2–5 working days | Lower fees at scale, advanced features | Complex setup, contracts, less suitable for small shops |
Your payment gateway does more than just process money—it affects trust, user experience, and even how likely someone is to complete their order. Think about your customer journey, how tech-savvy you are, and what kind of support you need.
Need help choosing or setting up the right payment system for your online shop? Get in touch with Polyspiral – we’ll help you make the best choice for your business.
