Online Payments
The Best Online Payment Service Providers in 2024
Online payment systems have revolutionised how transactions are conducted in the UK, becoming an integral part of personal and business financial management. With the increasing shift towards digitalisation, 80% of UK adults prefer managing their finances via online platforms or mobile applications, highlighting a significant departure from traditional banking methods.
Suppose you’re still navigating the complexities of manual payment processing, relying on cash or bank transfers. In that case, you might be pondering on the existence of a more streamlined approach. Fortunately, the digital age brings many online payment solutions to simplify financial transactions for your clients, customers, or supporters.
At the heart of online payment processing lies the fundamental aim of enhancing convenience for your stakeholders, ensuring they can easily contribute to your cause, purchase your products, or pay for your services from wherever they are at any time.
In today’s competitive landscape, the ability to offer an online payment option is not just a bonus; it’s a necessity for reaching your entire potential customer base, regardless of your sector or the scale of your operations.
Take the example of Lucy the manager of a popular slimming club. After integrating an online payment system into their membership management, they saw a dramatic increase in membership renewals and new sign-ups. Within just a few weeks of announcing their new courses online, they had exceeded their funding goals by 25%, significantly boosting their operational budget.
Lucy’s success story is a testament to the transformative power of online payment systems. By embracing digital payment solutions, she was able to tap into a broader audience, securing participation from individuals who might have yet to engage with their events otherwise.
Her experience mirrors countless other UK organisations that have witnessed remarkable growth and efficiency improvements by adopting online payment methods.
As we delve deeper into the mechanics of online payment services, why they’re indispensable for your organisation, and the leading providers in the 2024 marketplace, we aim to equip you with the knowledge to choose the best solution tailored to your needs. Read on for an updated list of top online payment service providers, ensuring you have access to the most current and effective options available.
Why are Online Payment Services Necessary?
In today’s digital-first world, online transactions’ convenience and efficiency are transforming how organisations operate and interact with their supporters. Here’s why integrating online payment services is indispensable for your business or non-profit:
Meeting Standards and Expectations
In an era where digital transactions are the norm, not the exception, the expectation for online payment capabilities is higher than ever. Members, customers, or supporters looking to engage with your services, sign up for events, or make donations prefer a seamless and swift online payment process. Websites needing online payment options risk being perceived as outdated, potentially deterring prospective supporters.
Speeding Up the Payment Process
Online payments markedly expedite the transaction process compared to traditional methods. There’s no waiting for cheques to arrive or to be cleared by the bank. The entire procedure, from making an online payment to the reflection in your bank account, can be completed in seconds. This efficiency leads to improved cash flow for your organisation and instant transaction confirmations, enhancing the experience for new members and event participants.
Saving Time with Automation
Automating payments alleviates the hassle of depositing cheques and manually recording payments and ensures a smoother operational flow. By setting up online payments on your website, transactions are processed automatically, eliminating the need to manually handle or store sensitive credit card information. Moreover, updates to member records are seamlessly managed, further saving time and reducing administrative burdens.
Earning More Revenue
The ability to process payments online can significantly bolster your organisation’s trustworthiness and broaden your reach. By making your services, memberships, or events accessible to a larger audience, you’re likely to see an uptick in revenue. This expansion not only supports the financial health of your organisation but also amplifies its impact.
Keeping Payment Information Secure
Trust is paramount when handling financial transactions. Implementing a secure online payment system reassures your supporters that their financial contributions, whether dues, event registrations, or donations, are processed safely and accurately. This assurance strengthens supporter confidence in your organisation, ensuring their personal and payment details are well protected.
What Are Online Payments?
Navigating the world of online payments can sometimes feel like deciphering a complex code, largely due to the variety of terms that seem to overlap in meaning. These terms include:
- Payment gateway
- Payment processor
- Payment provider
- Payment service or payment system
- Merchant account
Despite their apparent similarity, each of these terms has its own distinct definition and role in the process of facilitating online transactions and payments.
Payment Gateway
A payment gateway acts as the digital conduit that handles the initial submission of your online payment request. It functions similarly to a physical point-of-sale terminal found in retail stores, where you swipe or insert your card for payment. This service captures the payment details on your website and forwards them to the payment processor.
Payment Processor
The payment processor comes into play after the payment gateway, taking on the task of verifying the purchaser’s payment details, such as credit card information, and checking for sufficient funds. Upon successful verification and availability of funds, the transaction is authorized, and the funds are moved from the customer’s account. The payment processor then communicates the transaction’s outcome back through the payment gateway, which updates your website accordingly. Payment processors also often provide the hardware needed for in-person payments, like card readers.
Payment Provider
A payment provider, or payment service provider, is the overarching company that offers payment gateway and payment processor services. Some providers offer both services, streamlining the entire transaction process under one roof.
Payment Service or Payment System
When a payment provider offers various payment gateway options, each with its own set of features and pricing plans, these are referred to as payment services or payment systems. For instance, PayPal is a well-known payment service provider that features multiple payment options, including PayPal Payflow Pro and PayPal Express Checkout.
Merchant Account
A merchant account is essential for holding funds received from online credit and debit card transactions. This special type of bank account temporarily holds the funds from completed transactions before transferring them to your organisation’s primary bank account at set intervals. Setting up a merchant account with your payment provider is a typical requirement for accepting online payments.
Payment Gateway vs Payment Processor: Clarifying the Confusion
Although “payment gateway” and “payment processor” are terms often used interchangeably, they signify different components of the payment process. The payment gateway focuses on authenticating the customer’s payment, acting as the initial point of contact in an online transaction. Meanwhile, the payment processor facilitates the actual movement of funds between banks and merchants, playing a crucial role in the authorization and transfer of payments.
This distinction is particularly important in online transactions, which require the additional authentication step provided by the payment gateway, unlike in physical transactions where a payment processor suffices. Adding to the complexity, some companies offer integrated services that combine the payment gateway and processor functions, potentially simplifying the process for merchants but also blurring the lines between these roles.
As you delve into our list of payment processors, understanding these nuances will help you make informed decisions about the right payment solutions for your online transactions.
How Online Payments Work
The journey of an online transaction from initiation to completion involves multiple steps and participants, including your website, your customers (be they members, donors, or shoppers), and your chosen payment service provider. Here’s a closer look at how the entire online payment process unfolds.
Getting Started with Online Payments
To enable online payments, you typically need the following:
- A merchant account: Not all payment systems require you to have a separate merchant account. For instance, services like PayPal can process payments without one or provide an integrated solution.
- An account with a payment service provider: This is essential for accessing payment gateway and processing services.
- A transaction initiation point on your website: This could be a button labelled ‘Join’, ‘Donate’, ‘Buy’, etc., embedded on your webpage. You can use code from your payment service provider or employ a shopping cart software to facilitate this.
The Transaction Process
When a visitor on your site decides to make a payment, whether it’s for membership fees, event registration, a donation, or a purchase from your online store, the process kicks off as soon as they click the payment button.
- Entering Payment Information: The visitor is prompted to fill in their credit card details on a payment form. This form could be hosted directly on your website or on the payment service provider’s site, depending on the setup.
- Secure Transmission to Payment Gateway: The payment information, along with the transaction request, is securely sent to the payment gateway managed by your payment service provider. The data is encrypted to ensure the privacy and security of the purchaser’s financial details.
- Verification and Authentication: The payment service provider then uses a secure processing service to authenticate the purchaser’s credit card details and verify the availability of sufficient funds for the transaction.
- Fund Transfer and Notification: If the transaction is authorized (meaning the credit card details are valid and there are enough funds), the payment service provider facilitates the transfer of funds from the purchaser’s bank account to your merchant account. Your website is then notified of the successful transaction, which can trigger automatic updates to your records, such as membership databases or event registrations.
- Handling Declined Transactions: In cases where the transaction is declined due to reasons like invalid details or insufficient funds, no money is moved. However, your website will still receive a notification about the transaction status.
This structured process ensures that online payments are not only convenient but also secure, providing confidence to both the seller and the buyer in the digital marketplace.
Embracing the Future of Online Payments
The digital revolution has transformed the landscape of financial transactions, making online payments an integral part of our daily lives. As we conclude our exploration of online payment systems, let’s reflect on the significant impact and advantages they bring to both businesses and consumers.
Simplifying the Purchasing Process
Online payment systems streamline the purchasing process, making it convenient and straightforward for customers. By integrating payment gateways and processors into websites, businesses can offer their customers a seamless shopping experience. This not only enhances customer satisfaction but also boosts sales and growth for the business.
Enhancing Operational Efficiency
The adoption of online payment solutions significantly improves the operational efficiency of organizations. Automating the transaction process reduces manual labor, minimizes errors, and speeds up the entire cycle from order to cash. For non-profits and membership-based organizations, this means more time focusing on core activities rather than administrative tasks.
Expanding Reach and Revenue
Online payments open up global markets for businesses and increase fundraising capabilities for non-profits. By offering a variety of payment options, organizations can cater to a broader audience, regardless of geographical location. This expansion is crucial for growth in today’s digital economy.
Ensuring Security and Building Trust
Security is paramount in online transactions. Modern payment systems come equipped with advanced encryption and security measures to protect sensitive financial information. This security builds trust among users, encouraging them to engage more freely in online transactions.
Looking Ahead: The Digital Transformation Continues
As technology evolves, so too will the ways in which we make and accept payments online. Staying informed about the latest payment solutions and adapting to emerging trends is essential for organizations aiming to remain competitive in a digital-first world.
In embracing online payments, organizations not only future-proof their operations but also enhance their service offerings, making it easier for customers to engage with their products or services. The journey towards digital transformation is ongoing, and online payments are a cornerstone of this evolution.
In conclusion, the power of online payments lies in their ability to connect businesses and consumers in a secure, efficient, and convenient manner. As we move forward, the importance of integrating these systems into digital platforms will only grow, highlighting the critical role they play in the success and sustainability of modern organizations. Embrace the future with confidence, knowing that online payments are a key enabler of digital progress and prosperity.
First Data / Fiserv
First Data, now part of Fiserv, offers a wide array of payment processing solutions. They are recognized for their innovation and reliability, making them a preferred choice for businesses seeking advanced payment technologies.
AIB Merchant Services
AIB Merchant Services offers a wide range of payment solutions. They are known for their comprehensive and secure services, catering to businesses looking for versatile payment processing capabilities.
Paypoint
Paypoint helps over 28,000 businesses with payment solutions. They offer a range of services known for their convenience and reliability, suitable for businesses seeking accessible payment processing options.
IZettle
iZettle, now Zettle by PayPal, provides innovative mobile payment solutions. They are ideal for small businesses and entrepreneurs seeking user-friendly and portable payment options.
Fiserv
Fiserv, known for its comprehensive payments and business solutions, offers a range of advanced payment processing services. They are a top choice for businesses seeking integrated and scalable payment systems.
SecurionPay
SecurionPay offers facilities for efficient and secure online payments. Their services are designed for businesses seeking reliable and straightforward online payment processing.
Smarttrade App
Smarttrade is notable for its mobile app-based payment solutions. They cater to businesses looking for easy and mobile-friendly payment processing, ideal for on-the-go transactions.
Klarna
Klarna is recognized for its innovative payment solutions, including packaged banking services. They offer user-friendly and flexible payment options, appealing to businesses and consumers seeking modern payment methods.
First Data
First Data, now Fiserv, is known for its extensive range of payment processing solutions. They offer services that are both innovative and reliable, making them a top choice for businesses seeking advanced payment technologies.
Authorize.Net
As an American card payment gateway, Authorize.Net specializes in providing secure and user-friendly online payment solutions. Their services are ideal for businesses seeking reliable and integrated online transaction processing.
Zettle by Paypal
Zettle, now part of PayPal, offers mobile and efficient payment solutions. They are known for their user-friendly card readers and POS systems, catering to small businesses and entrepreneurs.
Opayo by Sage Pay and Elavon
Opayo, formerly Sage Pay, now part of Elavon, provides a range of secure and flexible payment solutions. They are a go-to provider for businesses seeking reliable and comprehensive payment services.
Barclays
Barclays offers facilities for managing and processing payments efficiently. Their services are designed for businesses looking for secure and comprehensive banking and payment solutions.
EVO Payments
Founded in 1989, EVO Payments is known for its global payment solutions. They offer a range of services focusing on security and innovation, catering to businesses seeking international payment processing capabilities.
Worldpay
Worldpay supports more than 400,000 merchants worldwide, providing a wide range of payment processing services. Their solutions are known for being versatile and reliable, suitable for businesses of various sizes and sectors.
Payzone
Payzone merchant services are designed for small and medium-sized businesses. They offer tailored payment solutions that are both secure and user-friendly, making them a preferred choice for growing businesses.
First Payment
Launched in 2011, First Payment provides a range of merchant services focused on efficiency and security. They are ideal for businesses looking for personalized and reliable payment solutions.
Verifone
Verifone offers facilities for taking payments through various methods. Their services are known for their security and versatility, catering to businesses seeking flexible and reliable payment processing.
Retail Merchant Services
Retail Merchant Services provides a range of payment solutions tailored for retail businesses. They focus on delivering secure and user-friendly services, ideal for retailers seeking efficient transaction processing.
Axcess Merchant Services
Axcess Merchant Services offers merchant accounts and payment processing solutions. They are known for their customized services, catering to businesses seeking tailored payment processing options.
Shopify
Known as a subscription-based software allowing anyone to set up an online store and sell their products, Shopify offers integrated payment solutions. They are ideal for e-commerce businesses seeking comprehensive and user-friendly online sales and payment systems.
Credorax
Credorax offers facilities for managing payments efficiently. Their services are tailored for businesses seeking advanced and secure payment processing solutions.
Handepay
Handepay provides payment processing solutions with a focus on simplicity and affordability. They cater to small and medium-sized businesses looking for straightforward and cost-effective payment systems.
Cybersource
Cybersource offers facilities for secure online payment processing. They are known for their comprehensive and reliable services, making them suitable for businesses that prioritize secure and efficient online transactions.
Global Payments
Global Payments stands out for its comprehensive and global payment solutions. They offer a wide range of services tailored to meet the diverse needs of businesses, emphasizing security and efficiency.
Natwest
Natwest provides fast, secure, and convenient payment services. Their focus on efficient and reliable transaction processing makes them a preferred choice for businesses looking for streamlined banking and payment solutions.
Global Iris
Global Iris, part of Global Payments, is renowned for its comprehensive payment solutions. They offer a range of services tailored for secure and efficient transaction processing, catering to businesses seeking robust payment systems.
Cardsave
Cardsave, known for offering facilities through card machines and an online payment gateway, specializes in diverse and user-friendly payment solutions. They cater to businesses looking for reliable and accessible card processing and online payment services.
NetPay
NetPay, recognized for offering facilities for taking payments through an online payment gateway, provides diverse and secure payment solutions. Prioritizing efficient and reliable transaction processing, NetPay caters to a wide range of clients. Their services,...
EPOS Now
EPOS Now, known for being a company specializing in EPOS equipment and software, offers tailored payment solutions. Emphasizing secure and adaptable transaction processing, EPOS Now serves various business needs. Their services, which include specialized EPOS...
Transax
Transax, known for its facilities for taking payments through phone payments, specializes in versatile payment solutions. Focusing on secure and user-friendly transaction processing, Transax is ideal for businesses needing phone payment options. Their services,...
Monek
Monek, recognized for its global payment platform that supports all payment types, offers comprehensive payment solutions. With a commitment to secure and all-encompassing transaction processing, Monek addresses the needs of a global clientele. Their services,...
Amazon Pay
Amazon Pay, known for offering facilities for taking payments through an online payment gateway, delivers tailored and secure payment solutions. Concentrating on reliable and streamlined transaction processing, Amazon Pay serves a broad spectrum of customers. Their...
First Payment Merchant Services
Known for their comprehensive merchant services, First Payment Merchant Services offers specialized solutions in payment processing. Their focus on secure and efficient transactions makes them a preferred choice for businesses seeking reliable merchant services.
HSBC Merchant Services
HSBC Merchant Services, recognized for their wide range of payment solutions, provides secure and diverse payment options. They cater to various business needs, emphasizing customer satisfaction and transaction reliability.
Braintree
Braintree, an online payments solution provider, offers a suite of payment processing tools. Their services are known for being user-friendly and robust, making them a top choice for businesses looking for advanced online payment solutions.
Bank Of Ireland Payment Acceptance
Known for their payment acceptance solutions, the Bank Of Ireland Payment Acceptance provides secure and versatile payment processing services. Their focus on customer-centric solutions makes them a reliable partner for businesses of all sizes.
Card Cutters
Card Cutters are recognized for their facilities in card machine and online payment gateway services. They offer tailored payment solutions that are both secure and easy to use, making them an attractive choice for businesses seeking comprehensive payment processing.
Paymentsense
Paymentsense, renowned for using the latest technology in payment processing, offers cutting-edge and reliable payment solutions. They cater to businesses of all sizes, providing efficient and secure transaction processing. Known for their innovation and...
SumUp
SumUp, known for offering the card reader that turns your smartphone or tablet into a complete mobile point of sale, provides versatile and accessible payment solutions. Focused on user-friendly and mobile-friendly transaction processing, SumUp is ideal for small...
Elavon
Elavon, recognized for their expertise in payment processing, offers a wide range of secure and efficient payment solutions. They are a preferred choice for businesses looking for comprehensive and reliable payment services with global reach.
SimplyPayMe
SimplyPayMe, known as the mobile app for small businesses, offers innovative and flexible payment solutions. They specialize in providing user-friendly and mobile-centric payment services, catering to the needs of on-the-go businesses and service providers.
Sage Pay (now Opayo)
Sage Pay, now known as Opayo, offers trusted and secure payment solutions. They are renowned for their reliability and comprehensive services, making them a top choice for businesses seeking advanced and versatile payment processing options.
Allied Wallet
Allied Wallet, known for offering flexible online payment processing solutions, provides a range of secure and user-friendly payment options. Their services are tailored to meet the diverse needs of online merchants and e-commerce businesses.
SmartDebit
SmartDebit, recognized for their facilities in managing direct debits, offers tailored payment processing solutions focused on efficiency and security. They are a go-to provider for businesses seeking reliable direct debit management services.
Cardstream
Cardstream, known for their online payment gateway services, provides comprehensive and secure online payment solutions. Their focus on customizable and integrated payment systems makes them a preferred choice for businesses looking to enhance their online payment...
Stripe
Stripe, celebrated for bringing together everything required to build websites and apps that accept payments globally, offers a full suite of advanced payment solutions. They are renowned for their innovative and developer-friendly approach, making them ideal for...
Paysafe
Paysafe, a global leader in payments, offers a wide array of tailored and secure payment solutions. Their focus on adaptable and comprehensive services caters to businesses seeking scalable and global payment processing options.