Expanding into the UK’s thriving e-commerce landscape is an exciting opportunity—but one critical decision can make or break your success: choosing the right payment gateway. The UK market has its own mix of consumer expectations, regulatory standards, and preferred payment methods. A solution that works well in your home country might fall short in handling local currencies, compliance requirements, or the fast-evolving security landscape in the UK.
Payment trends in the UK
Debit cards remain a core method for both online and offline transactions in the UK. Most in-store card payments are now contactless, reflecting how accustomed UK consumers have become to fast, digital experiences. Digital wallets are also reshaping purchasing habits, with 40% of shoppers already relying on them for online payments.
Recurring payments are another key pillar. Direct debits have long been trusted for recurring expenses such as subscriptions and utilities, and they continue to account for a large portion of electronic payment volumes. Alongside this, open banking has introduced new ways to handle recurring and account-to-account payments.
The fastest growth is happening in mobile payments, projected to reach USD 6.92 billion by 2030. High smartphone penetration and consumer demand for frictionless transactions have fueled widespread adoption of mobile contactless payments. Proximity payments are projected to dominate mobile usage soon, making mobile readiness and wallet integration essential features for any gateway targeting UK consumers.
1. Payment gateway cost and fees
Cost remains a top concern for finance teams when assessing payment systems. UK businesses should compare gateways on total cost of ownership, not just headline transaction fees. Evaluate:
- Transaction fees: Fixed vs. percentage-based charges for card and alternative payment methods.
- Cross-border fees: Costs for processing international payments or conversions.
- Settlement and withdrawal fees: Frequency and cost of fund settlements.
- Hidden charges: Setup fees, monthly minimums, or penalties for low volume.
The UK cards and payments market was valued at USD 489 billion in 2024 and is projected to exceed USD 1.2 trillion by 2033. As volumes grow, even small differences in processing costs compound into significant financial impact. Transparency is key; the best payment gateways provide detailed reporting on fees and settlement schedules.
2. Payment method coverage
UK consumers expect a wide range of payment methods, and meeting these expectations is critical for both conversion and customer trust. A strong gateway should support not only the core methods but also emerging options that are gaining traction in the UK. When evaluating a gateway provider, confirm it supports:
- Common card payments (Visa, Mastercard, American Express)
- Preferred digital wallets (Apple Pay, Google Wallet, PayPal, Revolut)
- Local and alternative payment methods (Open Banking, Klarna, or buy-now-pay-later options)
- International payment methods for cross-border commerce
Gateways that offer unified APIs and centralised reporting simplify operations and allow businesses to enable or disable methods easily without major technical work. Merchants should also consider whether the gateway supports emerging technologies, such as variable recurring payments through open banking, to future-proof their payment strategy.
3. Compliance, security and risk management
Payment compliance in the UK is shaped by PSD2 and the forthcoming PSD3 regulation. These frameworks require Strong Customer Authentication (SCA) and secure data management practices. Compliance ensures that your online payment solution protects customers and reduces liability.
Look for a gateway that is PCI DSS Level 1 certified and offers fraud protection tools, including 3D Secure, address verification, and risk scoring. Solutions like Antom Shield, which uses rules and data analysis to prevent fraud, provide valuable reassurance for finance and operations teams.
4. Settlement, reconciliation, and reporting capabilities
Efficient settlement and reconciliation are vital for accurate cash flow management. A strong payment processor should offer:
- Flexible settlement cycles (daily, weekly, or by transaction type)
- Multi-currency settlement options
- Automated reconciliation reports
- Real-time transaction visibility
Providers that offer flexible settlement solutions simplify how you allocate funds to different accounts or business entities. This helps finance teams maintain transparency and accuracy without adding administrative workload.
5. Integration and time-to-market
Ease of integration directly influences how quickly you can launch or switch providers. When reviewing gateway providers, evaluate:
- Integration options (SDKs, APIs, hosted payment pages)
- Developer resources and documentation
- Sandbox testing and support availability
The best payment gateways in the UK offer both hosted and API-based integration models. Hosted payment solutions simplify compliance, while direct API integration provides greater control and customisation. Time-to-market is a key operational consideration, especially for businesses rolling out new payment experiences across multiple markets.
6. Industry-specific needs
Different sectors have distinct payment system requirements. For example:
- E-commerce platforms may need combined checkout for multiple merchants or integrated refunds.
- Marketplaces often require multi-party settlements and commission splitting.
- Subscription-based businesses rely on automated recurring billing and cancellation flows.
- Retail and hospitality value fast, in-store payments that sync with inventory systems.
A gateway provider that supports these scenarios through flexible APIs or pre-built modules can significantly reduce development and operational effort.
7. Conversion optimisation
Payment experience directly influences conversion. Around 18% of shoppers abandon their carts due to payment issues. Minimising friction during checkout helps retain these customers.
A modern payment system should include tools to improve success rates, such as:
- Intelligent routing to the most reliable acquirer
- Retry mechanisms for failed transactions
- Fast load times and mobile-friendly design
- Local language and currency options
Features like one-click payment, tokenisation, and wallet support make online transactions smoother and faster. For instance, solutions offering auto-retry and balance checks, such as Antom’s Revenue Booster, have been shown to recover failed transactions efficiently.
Conclusion
The UK payments landscape is dynamic, combining widespread use of traditional methods with rapid adoption of digital wallets and open banking. Whether you’re a UK-based business or a global merchant entering the market, selecting the right payment gateway involves more than just comparing fees. Payment service providers like Antom illustrate how combining security, flexibility, and local expertise can help businesses thrive in the UK’s fast-evolving payment environment.
