Square Alternative for UK Businesses: Lower Fees in 2026

Payment processing has changed significantly over the last few years. UK businesses now have more options than ever when it comes to how they collect money. Square has been part of that landscape for a while, but it is far from the only choice. And for businesses looking to reduce what they spend per transaction or get paid faster, exploring the alternatives makes a lot of sense.

Here is a look at what is available, and where each one fits.

The alternatives worth considering

Atoa is a UK-based, FCA-authorised payment provider that offers Pay by Bank and card payments from one platform. Pay by Bank works by moving money directly from a customer’s bank account to yours via the UK’s Faster Payments network. This means no card network in the middle and significantly lower fees as a result. 

Pricing starts at 0.6% per transaction plus a small authorisation fee, payments settle instantly, and it works across in-person, online, and remote payments. For businesses processing a high volume of domestic UK payments, the cost difference adds up quickly. 

Card payments are also supported at competitive rates for customers who prefer to pay that way.

Stripe is well established for online payments and eCommerce, supporting over 135 currencies and a wide range of payment methods. It is a strong option for businesses with developer resource or complex billing needs, though fees and extras can accumulate for businesses processing high volumes.

SumUp is a straightforward option for in-person card payments, with competitive per-transaction rates and simple hardware. It works well for businesses that want to get up and running quickly without a lot of configuration.

GoCardless is built around Direct Debit and recurring payments. If your business runs on predictable subscription or retainer billing, it handles that well. It is less suited to businesses that need flexibility across one-off and recurring payments, or those that want instant settlement.

Revolut Business is worth considering for businesses that want payments and banking in one place. More so for those dealing with international customers or multiple currencies. Online transaction fees are competitive and same or next-day settlement is available depending on the plan.

Why chargebacks are a bigger cost than most businesses realise

Card payments come with a hidden cost that does not always show up in the headline rate: chargebacks. When a customer disputes a transaction, the merchant typically loses the payment, pays a dispute fee on top, and spends time managing the process. 

According to UK Finance’s Annual Fraud Report, criminals stole £1.17 billion through fraud in 2024, with banks preventing a further £1.45 billion through security systems. A significant portion of what gets through lands with merchants in the form of chargebacks and disputed transactions.

Pay by Bank removes that risk entirely. The customer themselves authorise every payment directly inside their Bank app using face ID, fingerprint scan or a passcode. So there is no card number that can be stolen and no chargeback mechanism to exploit. That is not a small thing for businesses where fraud exposure is real.

That said, card payments still have a place. Some customers will always prefer to pay by card. Offering both Pay by Bank and card means no one is left without an option. The practical approach for most UK businesses is to lead with Pay by Bank for the cost and settlement benefits, and offer cards as the fallback. Over time, as more customers become comfortable paying directly from their Bank app. The proportion of lower-fee Pay by Bank transactions naturally grows.

Is switching worth it?

For UK businesses taking mostly domestic payments and looking to reduce processing costs, a Square alternative UK businesses are increasingly turning to is one that combines lower fees with instant settlement and no chargeback exposure. Atoa covers those bases while keeping card payments available for customers who want them.

Stripe and Revolut Business make sense for businesses with specific international or technical requirements. SumUp is a solid, no-fuss choice for in-person card payments. GoCardless works well if recurring Direct Debit billing is your primary need.

The honest question is not which provider is best in the abstract, but which one costs your business the least while still giving your customers the flexibility they expect. For a growing number of UK businesses in 2026, Pay by Bank is a meaningful part of that answer.

Want to see how Atoa’s fees compare against your current payment volumes? Get in touch with the team for a tailored breakdown.