WooCommerce Payment Gateway Alternatives to Stripe

Stripe is a solid default. Clean API, wide support, easy WooCommerce integration; there’s a reason so many stores start with it. But “easy to start with” doesn’t always mean “best to stick with,” especially if your margins are tightening and you’re a UK-based business watching transaction fees chip away at every order.

So what are your actual WooCommerce payment alternatives worth considering?

The case for switching (or at least adding options)

Stripe charges 1.5% + £0.20 per domestic UK transaction. That’s not extortionate, but it compounds. European cards jumped to 2.5% + £0.20, and non-European cards attract higher rates on top. Add a dispute and that is £20 per chargeback. Issue a refund and Stripe keeps the fixed fee regardless.

Meanwhile, the UK’s open banking landscape has shifted dramatically. According to Open Banking Limited’s 2025 Impact Report, 31 million open banking payments were made in March 2025 alone. That is a 70% year-on-year increase. By early 2026, open banking had reached 13.3 million active users in the UK. That is not a niche anymore.

Top WooCommerce payment gateway alternatives

Fees confirmed from primary sources as of 2026. Verify current rates with each provider before relying on them.

A closer look at each

PayPal is still the most recognisable name at checkout, and that familiarity drives conversions. The downside? At 2.9% + £0.30, it’s the most expensive on this list for domestic UK transactions and customers get redirected off-site unless you pay for the advanced integration.

Square offers the lowest percentage rate at 1.4% + £0.25 for UK cards, making it attractive for higher-volume stores. It also syncs inventory with Square POS, which is useful if you sell in-person too.

WooPayments (powered by Stripe) is the native option. Everything is managed inside your WordPress dashboard. UK card fees are 1.5% + 25p, with a £15 dispute fee per chargeback. Watch the additional 1% fee on subscription payments if you are running a membership or subscription-based store.

GoCardless is worth a mention for B2B merchants or anyone offering subscriptions. It specialises in Direct Debit and is a genuinely lower-cost option for recurring billing without the card network overhead. For a full comparison of the two approaches, see Pay by Bank vs Direct Debit for Xero users.

The one worth watching: Pay by Bank via Atoa

Here’s where it gets interesting for UK merchants specifically. Pay by Bank is a payment method that bypasses card networks entirely. 

For WooCommerce stores, Atoa’s Pay by Bank integration plugs directly into checkout, letting customers pay straight from their Bank app. Settlement is faster, fees are up to 50% lower than standard card rates, and there are no chargebacks on bank-approved payments.

The free Atoa plugin also includes card payments, Apple Pay, and Google Pay in the same integration, so you are not asking customers to give up anything, you are just giving them a better option alongside what they already expect. For the full setup guide, see how to add a payment gateway in WooCommerce and the Atoa WooCommerce integration page.

If you’re running a UK-focused store and card fees are genuinely affecting your margins, it’s the most compelling WooCommerce Stripe alternative on this list.

The bottom line

Whether you’re looking to cut transaction costs, speed up settlement, or simply give customers more ways to pay, there’s a WooCommerce payment plugin for it. The best setups often combine a card-based gateway for familiarity with a lower-cost alternative like Pay by Bank for those who are happy to skip the card altogether. Start with what your customers need at checkout, then let the fees follow.

Sources

• Open banking 31 million payments, 70% year-on-year growth, 13.3 million users (March 2025): Open Banking Limited, OBL Impact Report 7
• WooPayments UK fees (1.5% + £0.25, dispute £15): WooPayments fees documentation
• Square UK online fees (1.4% + 25p): Square UK payments
• Stripe UK fees: stripe.com/gb/pricing
• Atoa WooCommerce plugin: wordpress.org/plugins/atoa-pay