For most UK ecommerce websites, Stripe is the best all-round payment gateway, with PayPal added alongside it because so many shoppers like to use it. Square is a strong choice if you also sell in person, GoCardless suits recurring payments by Direct Debit, and Worldpay or Elavon (which runs Opayo) suit established businesses that want negotiated rates.

A payment gateway is the service that securely takes a customer’s card or wallet payment on your website and passes the money to your bank. Below we compare the main UK options, with fees taken from official UK pricing pages in October 2026, and explain which work best with WooCommerce.

Payment gateway fees compared

All fees are per successful transaction unless stated. Providers update their pricing, so check the official page before you sign up.

Gateway	Standard UK online card fee	Other fees to know	WooCommerce
Stripe	1.5% + 20p (standard UK cards)	Premium UK cards 2.8% + 20p; EEA cards 2.5% + 20p; international cards 3.15% + 20p; plus 2% if currency conversion is needed	Yes, official plugin
PayPal	PayPal Checkout 2.9% + 30p	Advanced card processing from 1.2% + 30p; Pay Later 3.9% + 30p; surcharge for international buyers	Yes, official plugin
Square	1.4% + 25p (UK cards, online)	Non-UK cards 2.5% + 25p; in-person payments 1.75%	Yes, official plugin
WooPayments	Check the UK rate on WooCommerce’s fee page	Extra fees for international cards and currency conversion	Built for WooCommerce
GoCardless	Not a card gateway	Standard plan 1% + 20p per Direct Debit payment, capped at £4 (plus VAT)	Yes, plugin available
Worldpay	Custom pricing	Quote based; online applications have a minimum 18-month contract	Yes, via plugins
Elavon (Opayo)	Custom pricing	Quote based, depending on channels and transaction profile	Yes, via plugins

Sources: the official Stripe UK pricing page, PayPal UK business fees, Square UK fees and GoCardless UK pricing. Worldpay and Elavon do not publish standard online rates.

The main card gateways and where they fit

Stripe is the best all-rounder for most shops

Stripe has no setup or monthly fees and charges 1.5% + 20p for standard UK cards. It supports cards, Apple Pay, Google Pay, Klarna and Bacs Direct Debit through one account, and its WooCommerce plugin is free.

• Pros: clear published pricing, a well-designed checkout, strong fraud tools and lots of payment methods in one place.
• Cons: premium and international cards cost noticeably more, so your real average rate depends on your customers.

For many WooCommerce shops, Stripe works well as the main card gateway, with PayPal added as a second option.

PayPal is worth offering alongside cards

Lots of UK shoppers prefer to pay with PayPal because they do not need to type card details. In the UK, PayPal Checkout costs 2.9% + 30p for domestic transactions, with an extra surcharge when the buyer is outside the UK. PayPal’s advanced card processing, which lets customers pay by card on your site, has a lower blended rate of 1.2% + 30p.

PayPal also includes Pay in 3, its buy now pay later option. Customers pay the first instalment at purchase and the rest over the next two months, while you are paid in full upfront. PayPal lists Pay Later at 3.9% + 30p per transaction.

• Pros: trusted by shoppers, quick for returning customers, buy now pay later included.
• Cons: higher fees than standard card processing, and some sellers find disputes and account holds frustrating.

Square suits shops that also sell in person

If you have a physical shop, market stall or events business, Square brings in-person and online sales together, with one stock list and one set of reports. Online payments through Square Online Checkout or its ecommerce tools cost 1.4% + 25p for UK cards, and in-person card payments cost 1.75%. Square does not list a monthly subscription for payments.

Related reading: The Ultimate Guide to Integrating Payment Easily on Business Websites

Square’s official WooCommerce plugin can sync products and stock between your website and your Square account, which saves double entry.

WooPayments is built into WooCommerce

WooPayments is WooCommerce’s own payment service, managed from your WordPress dashboard. It supports cards and wallets, and it is available to UK businesses. Rates vary by country and card type, with extra charges for international cards and currency conversion, so check the UK section of WooCommerce’s fee documentation before choosing it over Stripe.

Direct Debit and negotiated rates have their place

GoCardless is ideal for recurring payments

GoCardless collects payments by Direct Debit straight from customers’ bank accounts, which works well for subscriptions, memberships and regular orders. Its Standard plan costs 1% + 20p per UK payment, capped at £4, with no monthly fee for most users. Fees are subject to VAT. It is not a replacement for card payments on a normal shop, but it can be much cheaper for higher-value recurring payments.

Worldpay and Elavon suit established businesses

Worldpay and Elavon offer tailored pricing rather than published rates. Opayo, formerly Sage Pay, is part of Elavon. These providers can make sense for businesses with higher card volumes that want to negotiate, or that already use them for in-person payments. Check contract length carefully. Worldpay states a minimum 18-month contract for online applications.

Buy now pay later and wallets sit on top of your gateway

Buy now pay later costs more than cards

Buy now pay later (BNPL) lets customers split a payment into instalments while you are paid upfront. The main UK options are Klarna, Clearpay and PayPal Pay in 3.

• Klarna: available through Stripe from 4.99% + 35p per successful transaction, or directly from Klarna.
• Clearpay: customers pay in four instalments. Clearpay does not publish retailer pricing, but it integrates with WooCommerce, Shopify and other platforms.
• PayPal Pay in 3: included with PayPal at its Pay Later rate.

BNPL fees are higher than standard card fees, so it usually makes most sense for higher-value products. The rules also changed this year. The Financial Conduct Authority started regulating deferred payment credit, the formal name for most BNPL, on 15 July 2026, so lenders now have to run affordability checks and give customers clearer information. Make sure any BNPL messaging on your site is accurate and not misleading.

Apple Pay and Google Pay come through your gateway

You do not sign up to Apple Pay or Google Pay separately. They are switched on through your payment gateway, such as Stripe, Square or WooPayments, and are normally charged at the gateway’s card rates. With Stripe, websites using its embedded payment forms need to register their domain before the Apple Pay button appears. Wallets let customers pay with a fingerprint or face scan, which is especially helpful on mobile.

How to choose the right payment gateway

1. Work out your real rate. Use your average order value and customer mix (UK, EEA, international, premium cards) to compare costs properly.
2. Offer at least two options. A card gateway plus PayPal covers most shoppers.
3. Turn on wallets. Apple Pay and Google Pay make mobile checkout much faster.
4. Check payout times and contracts. Know when money reaches your bank and how easy it is to leave.
5. Check your platform. On Shopify, using a gateway other than Shopify Payments adds a platform transaction fee. WooCommerce does not charge one.

Frequently asked questions

What is the best payment gateway for WooCommerce?

For most UK WooCommerce shops, Stripe as the main card gateway plus PayPal. Square is a good alternative if you also sell in person.

What is the cheapest payment gateway in the UK?

For standard UK cards online, Square (1.4% + 25p) and Stripe (1.5% + 20p) are close, and which is cheaper depends on your order values. For recurring payments, GoCardless Direct Debit can cost less.

Do I need a merchant account?

Not with Stripe, PayPal, Square or WooPayments, which handle this for you. Traditional providers such as Worldpay and Elavon may set up a dedicated merchant account.

Should I offer buy now pay later?

It can suit higher-value products, but fees are higher than cards. Test it and watch whether order values and conversion rates justify the cost.

Get your checkout set up properly

We set up payment gateways, wallets and BNPL on WooCommerce shops so checkout is quick and costs stay sensible. See our WooCommerce agency and ecommerce web design services, or get in touch to talk it through.