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E-commerce Payment Solutions for Your Business

Did you know that there are 2.71 billion shoppers online? That is nearly 33% of the world’s population, as per the Sellers Commerce report. The e-commerce industry in the UK is a lucrative market, valued at an impressive £130 billion, as reported by Statista. Running an online store can feel like spinning plates — exciting, but if you drop one, things can get messy fast! Having the right e-commerce payment solutions in place can be your safety net.

This article explores the top e-commerce payment solutions to help online sales rise and keep customers happy. But first, let’s find out what these payment solutions are all about.

What are e-commerce payment solutions?

E-commerce payment solutions are how your business accepts money online when customers buy something from your website. This includes a payment gateway, which securely processes payments and information between the customer’s bank account and yours. These systems often come with user-friendly checkout so online shopping is quick and easy for customers.

There are lots of secure payment providers to choose from in the UK, which make money by taking a small percentage from each transaction. But which ones are worth your attention and why?

What are the benefits of e-commerce payment solutions?

Online payment providers offer businesses a range of benefits to improve shopping for customers and boost retail operations. Here are some key advantages of using these payment systems:

Quick and convenient payments: Fast transactions and easy checkouts help to build a positive customer experience.

Variety of payment methods: Supports multiple options such as credit cards, debit cards, and mobile wallets.

International transactions: Can handle payments in different currencies, which helps to reach a global audience.

User-friendly interfaces: Speeds up the checkout process for a better customer experience.

Fraud prevention: Built-in security features can help protect against fraudulent transactions.

Easy integration: Easily connects with popular e-commerce platforms to make running your business easier.

Best online payment system for small business in the UK

Before you do anything, make sure you are making the right choice. Comparing different systems based on factors such as fees, features, and usability can help your business make an informed decision. Let’s explore the top contenders to help you find the right payment solution for your business.

WorldPay

Worldpay handles over 40% of the UK’s card transactions, making it the largest payment processing company in the country. But why is it so popular?

Features:

Worldpay accepts all major credit and debit cards, including PayPal
They offer secure Pay by Link online payment options, so you can accept payments even if you don’t have a website

Pricing:

You have to pay an online set-up fee of £25
Every transaction is charged at 10p
The fixed monthly package fee starts at £49.99
Pay by Link transactions are charged at £9.95 per month

Pros:

Pricing plans are flexible
Reliable to accept a high volume of payments

Cons:

Doesn’t share its transaction fees publically
Expensive for smaller or emerging businesses

Adyen

Features:

Adyen is a Dutch company that helps businesses to accept payments as well as manage their data and finances. The platform allows users to accept e-commerce, mobile and point-of-sale payments from customers.

Adyen accepts payment methods, from credit and debit cards to bank transfers and digital wallets
You can use this platform to manage both business and customer payments

Pricing:

No setup fee
Mastercard and Visa are charged at 0.90% – 1.10% plus €0.10
SEPA Direct Debit is charged at €0.25 plus €0.10
Amex is charged at 3.95% plus €0.10

Pros:

Offers a single platform for businesses to handle their payments
Provides an extensive set of features with strong security measures

Cons:

Best suited for larger companies
Requires a minimum monthly transaction volume
Pricing structure can be complex

Paypal

PayPal is a trusted e-commerce payment solution with over 7 million businesses managing their transactions. It’s a household name, but here are a few points to consider before making a decision.

Features:

PayPal accepts cards, digital wallets and other methods in over 100 currencies
One of the easiest e-commerce payment methods, Paypal has a wide range of features with customisable checkouts

Pricing:

Transaction fees start at 1.9% plus 20p
There are no monthly fees unless you pay £20 for the pro version

Pros:

A trusted name and easy to set up
Customers can pay merchants directly using their PayPal account
No early termination charges

Cons:

Transaction fees are high for businesses with a low volume of sales
Customisations are only available on paid plans
There are several reports of accounts shutting with no prior notice or explanation, plus some industries are banned from the platform

Stripe

Millions of customers use Stripe because it accepts various payment methods and currencies. Easy integration and transparent pricing have also contributed to its popularity.

Features:

Accepts payments from all major cardholders and provides extensive support with wallet and local payments
Stripe allows you to set up recurring billing and Direct Debit services

Pricing:

No monthly fees or setup charges
European cards are charged at 1.4% plus 20p
Non-European cards are charged at 2.9% plus 20p
SEPA Direct Debit is charged at 1% plus 20p (£5 cap)

Pros:

Pricing is transparent
Powerful API with various integration options
Impressive UX across both desktop and phone payments

Cons:

Fees are expensive
Complaints about poor customer service
Requires coding knowledge for its complex setup
Funds are processed weekly on a rolling basis and appear in your account after 7 days

Klarna

This Swedish company is changing the way businesses accept payments. Klarna is a leading e-commerce payment solution in the UK in the buy now pay later (BNPL) sector.

Features:

Customers make immediate payments with cards, digital wallets, or alternative methods
They can buy now and pay later through an invoice for a smoother checkout process
They can also choose to pay in instalments, making it easier to manage larger purchases

Pricing:

Transaction fees range from 1.99% – 2.49% (depending on the business turnover)
No setup or monthly charges

Pros:

BNPL services can help boost sales and attract a wider audience
Customers stay on your website for a longer period

Cons:

Pricing information isn’t disclosed on their website
Potential for customer debt and chargebacks

Amazon Pay

Amazon Pay allows customers to pay with their existing Amazon account. Their payment details are already saved on the website so customers don’t have to add their information again.

Features:

Amazon Pay accepts several credit and debit cards in all major currencies like Visa, Mastercard, Amex and EuroCard
With the on-site checkout option, you also get the customer’s name and email when they pay

Pricing:

Processing and authorisation fee starts at 1.4% plus 20p
The chargeback dispute fee is £14 plus VAT

Pros:

Transactions are made without customers leaving your website
No hidden or cancellation fees

Cons:

The processing fee is higher for smaller businesses
It takes about 3-5 business days for the funds to reach your account

Atoa Instant Bank Pay

Customer using Atoa as an e-commerce payment solutions

Atoa helps you accept payments directly from customers’ existing bank apps within seconds. It’s quicker than cards as customers don’t have to enter sensitive card details with this e-commerce payment solution.

Features:

Easy integrations with accounting software such as Xero to sync payments
Request Google reviews from customers after they pay
Use Atoa on your desktop to accept, track and manage multiple payments in just a few clicks

Pricing:

0.6% per transaction plus VAT
No set-up fee or hardware costs
Additional features are available at an extra cost

Pros:

Funds reach your account within seconds of the customer making payments
Saves up to 50% on processing fees compared to accepting cards
No hidden fees or sneaky contracts
Zero chargeback risk

Cons:

Not the best option for complex business structures

Takeaway

Choosing the right e-commerce payment solution is important for your UK business. Each of our seven options has benefits and can fit different needs. Researching transaction fees and how well they work with your current setup is the best way to find a solution that makes payments efficient. Taking the time to make the right choice now may be the boost your business needs to succeed online. So, think about what’s most important for your business rather than changing your payment strategy further down the line.

FAQs about e-commerce payment solutions

How many payment methods do I need?

Businesses should offer at least three to four common e-commerce payment systems to different audience preferences. However, this number depends on your target audience and the products or services you sell.

Are email or SMS payment links safe?

Yes, they are generally safe, especially if you choose a trusted payment gateway. They use Strong Customer Authentication and biometric security such as fingerprint and face scans to add extra protection. Plus, it’s also a very convenient and quick way to pay.

How do I add Atoa payments to my e-commerce website?

Follow the steps below to add the Atoa plugin to your website in under 10 minutes.

Install the Atoa Business app from the AppStore or Playstore
Sign up using your business details.
Click the store icon on the homepage’s left side and tap settings.
Then click on API access to create a production key.
Head to the WordPress plugin marketplace and then search for Atoa Pay for WooCommerce.
Activate the plugin, and navigate to WooCommerce > Settings > Payments > All payment methods > Manage and paste your Access Secret.
Click “Enable Atoa Pay” when you are ready to go live.
Atoa Pay is now activated and ready to accept e-commerce payments from customers.

Find out more on the Atoa Help Centre.