The top seven payment processing companies and services in 2025

Payment processing can make-or-break businesses of all sizes. The right payment processor lowers fees, keeps customers happy at checkout, and helps you expand into new markets. The wrong one adds friction, racks up hidden costs, and slows your business down. 

We’ve researched and compared the leading UK payment processors in 2025, so you can see how they stack up and choose the one that fits your business best.

Summary

1. Look for easy integrations, broad payment method coverage, and robust security.

2. Pricing models matter: fixed-rate may work for small volumes, interchange-plus or subscription is better at scale.

3. Like-for-like settlement can slash FX costs.

4. Airwallex combines global payments with treasury, cards, and expense management, all in one platform.

What are payment processors?

Payment processors are the infrastructure that moves money from the customer to the business account. They sit between the issuing bank (the customer’s bank) and the acquiring bank (the merchant’s bank), ensuring every transaction is secure, authorised, and settled correctly. 

They're not the same payment gateways, which you can think of as a digital front door. They capture a customer’s payment details online or at checkout, encrypt them, and pass them to the processor for approval.

Read more: The top 6 international payment gateways for UK businesses in 2025

Beyond routing funds, a good processor can:

• Accept multiple payment methods including cards, digital wallets, bank transfers, Buy Now Pay Later, and local payment options

• Handle security and compliance such as encryption, fraud detection, PCI DSS, and Strong Customer Authentication (SCA)

• Support international growth by enabling multi-currency processing, offering like-for-like settlement, and giving access to local payment methods in new markets

• Provide data and reporting tools to help reconcile accounts, forecast cash flow, and optimise payment performance

By 2028, digital payments will account for 79% of e-commerce payments (up from 34% in 2014) and 53% of point-of-sale (POS) payments, up from just 3%. In other words, reliable processing is now central to business growth.

How payment processing works

From the customer’s perspective, the payment is instant. In the background, multiple systems exchange information to check identity, protect against fraud, and transfer funds securely.

1. Customer initiates payment. They enter card details, confirm with a digital wallet, or authorise a bank transfer.

2. Secure transmission. Data is encrypted and passed through a payment gateway to the processor.

3. Routing to banks. The processor sends the details to the card network such as Visa or Mastercard, which then routes the request to the issuing bank.

4. Verification. The issuing bank checks that the account is active, that there are enough funds available, and that there are no fraud risks.

5. Authorisation. If approved, the card network relays the confirmation back to the processor and then to the merchant.

6. Clearing and settlement. Funds are withdrawn from the customer’s account, collected by the processor, and deposited into the merchant’s account after the settlement period.

Read more: Cash flow like a pro - your guide to third-party processors

Top payment processors in the UK at a glance: features and fees (2025)

In depth: the leading payment processors compared on features and fees

Airwallex (UK)

Airwallex (that’s us) is a global financial platform rather than just a payment processor. You get access to multi-currency accounts, corporate cards, local payment methods, and treasury management in one place. Pricing is transparent, and plan fees can be waived under usage thresholds, which means smaller businesses aren’t locked into heavy commitments. Unlike many providers, Airwallex combines payment acceptance with expense management and global transfers on a single dashboard, making it strong for companies with international operations.

UK cards: 1.30% + £0.20 per transaction

EEA cards: 2.40% + £0.20

International cards: 3.15% + £0.20

FX conversion: 0.5% above interbank for major currencies, 1% for others

Over 160 local payment methods plus Apple Pay and Google Pay

Payouts: 1-3 business days depending on currency and method

Like-for-like settlement in 14+ currencies

See Airwallex’s pricing plan and fee schedule in detail. 

PayPal

PayPal is a recognisable checkout brand for UK consumers and integrates easily with ecommerce platforms. It’s strong on trust and adoption, but higher fees and high FX markups can reduce margins for merchants. Currency settlement is possible, but conversion costs are often higher than alternatives, which makes it less efficient for businesses operating internationally.

Domestic card payments via PayPal Online Card Payments: 1.2% + fixed fee

Standard domestic commercial transactions: 2.9% + fixed fee

International surcharge: +1.29% (EEA) or +1.99% (other regions)

FX conversion fees apply on non-GBP receipts

Payouts: instant to PayPal balance; 1-3 business days to bank

Stripe 

Stripe is a favourite among developers and scale-ups that need deep API flexibility. It supports a wide range of payment methods and has advanced fraud detection, but it needs more technical resources to set up and optimise. Fees are competitive for UK cards, but international cards and FX conversion add significant surcharges. Settlement can take several days unless you pay extra for instant payout.

Standard UK cards: 1.5% + 20p

Premium UK cards: 1.9% + 20p

EEA cards: 2.5% + 20p

International cards: 3.25% + 20p

Currency conversion surcharge: +2% if required

Payouts: 3-5 business days by default, instant available for a fee

Adyen

Adyen is for large enterprises that need a single platform for payments, risk, issuing, and acquiring. It supports hundreds of methods and scales globally. Pricing is usually custom and requires enterprise contracts. While Adyen offers strong settlement features, its complexity means businesses without dedicated technical and payments teams may find it harder to implement.

Interchange++ or blended pricing models

Fixed processing fee of around £0.10–£0.12 plus method fee

Settlement: 150+ currencies with like-for-like support

Payouts: usually T+2 for card payments

Shopify Payments 

Shopify Payments is built directly into the Shopify platform, removing third-party gateway fees for merchants who use it. This simplicity is its main strength. However, it locks payouts into the merchant’s local currency and charges additional fees for using alternative gateways, which can limit flexibility and increase costs for businesses that sell across borders.

Basic plan: 2.0% + 25p per UK online card transaction

Grow plan: 1.7% + 25p

Advanced plan: 1.5% + 25p

Third-party gateways: 0.6%-2% extra depending on plan

Payouts: 3-5 business days

Square

Square is popular with small businesses that need in-person POS hardware alongside payments. Its pricing is clear and easy to understand, making it ideal for domestic transactions. The trade-off is that Square UK only supports GBP settlement and lacks multi-currency features, which limits usefulness for businesses with cross-border operations.

In-person: 1.75% per transaction

Online UK cards: 1.4% + 25p

Online non-UK cards: 2.5% + 25p

Keyed-in or invoice payments: 2.5%

Payouts: next business day, instant transfers available for a fee

Revolut Business 

Revolut Business combines banking-style features with payment acceptance and is strong on multi-currency support. It offers competitive card fees and settlement in over 35 currencies, though advanced payment tools are more limited compared to full-service providers. Support is tied to plan tiers, with higher levels required for priority assistance.

UK Visa/Mastercard: 1% + 20p

UK Amex: 1.7% + 20p

International cards: 2.8% + 20p

Plans: Free basic plan; paid tiers add features

Payouts: typically 1-2 business days

Settlement supported in 35+ currencies

How to choose a processor

Whether this is your first time selecting a processor, or you’re thinking about switching, here are the key things to keep in mind:

Transparent costs

Check how fees are structured. Many providers advertise low domestic rates, but costs often rise once you accept international cards or different currencies. Watch out for FX markups, cross-border fees, and settlement charges when payments need to be converted into GBP. These extras can eat into your margins, especially if you sell abroad. The best processors publish clear pricing and let you settle like-for-like so you don’t have to pay for unnecessary conversions.

Ease of use

A processor should make running your business easier, not harder. That means a clean, intuitive dashboard where you can see all your transactions, track which payments have settled, and reconcile them quickly with your bank account. If you’re juggling multiple logins or downloading endless reports, the processor’s costing you time as well as money.

Integrations

Your processor should fit into the systems you already use. For eCommerce, look for plug-and-play integrations with platforms like Shopify, WooCommerce, or Magento. For finance teams, make sure it connects directly to your accounting software or ERP system so payments and payouts flow automatically into your books. That way you don’t waste time on manual data entry or fixing errors.

Scale

Think about where your business could be in two or three years, not just today. Will your processor handle a spike in transactions during busy seasons? Can it support new markets and payment methods as you grow internationally? A scalable processor should grow with you, whether you’re selling locally, across Europe, or worldwide.

Implementation

Getting started shouldn’t take months of technical work. Look for processors with clear documentation, straightforward onboarding, and responsive customer support. If you’ve got developers, the APIs should be well documented so you can customise your setup. If you don’t, the provider should offer no-code or low-code options so you can start taking payments quickly without needing specialist knowledge.

How to cut payment processing fees

Payment fees can stack up fast, but there are straightforward ways to keep them under control.

Match pricing to volume

Fixed-rate models suit lower volumes. High-volume businesses usually save more with interchange-plus or subscription pricing.

Use like-for-like settlement

Avoid forced currency conversions. Settle payments in the currency you receive to cut out double FX costs.

Watch international surcharges

Many providers add one to two % for non-UK or non-EEA cards. Check the small print.

Avoid long-term contracts

Processors without flexible contracts let you adapt as your business grows and only pay for the transactions you process.

Use native integrations

Pick processors with built-in ecommerce or accounting integrations. This reduces third-party gateway fees and saves time on reconciliation.

10 questions to ask providers

1. What’s the full fee structure (including FX)?

2. Any long-term contracts or exit fees?

3. Which payment types are supported?

4. How long are payout times?

5. What security standards do you meet (PCI DSS, SCA)?

6. Will it integrate with our stack?

7. What’s the support model (24/7, phone, email)?

8. Can you handle multi-currency?

9. How do you deal with chargebacks?

10. What value-added tools (analytics, reporting) are included?

Which payment processor is right for you?

Every business has different payment needs. Here’s what might work best for you.

Small retailers

Square is simple for point of sale. PayPal is familiar to shoppers. Airwallex works too if you sell online and want to avoid FX costs when you expand.

SaaS companies

Stripe is popular with developers for subscriptions. Airwallex offers flexible APIs plus multi-currency settlement, giving SaaS firms room to grow globally.

High-volume eCommerce

Shopify Payments is convenient for Shopify stores. Adyen suits corporates with dedicated teams. Airwallex combines competitive card fees with 180+ local payment methods and built-in treasury tools.

Global exporters

Airwallex is the strongest choice here, letting you hold, manage and settle in multiple currencies without forced conversions.

Best all round

Airwallex covers more ground than anyone else, with payments, FX, cards and expenses covered in one platform that grows with your business.

Why businesses choose Airwallex as their payment processor

Airwallex brings together everything businesses need to manage money globally in one platform. You can hold and settle in multiple currencies without hidden FX costs, send and receive payments in over 180 markets, and issue multi-currency cards for your team.

Unlike many providers that only do one thing, Airwallex connects the dots: accounts, payments, transfers, cards, and expenses all work together in a single dashboard. That saves time, reduces errors, and gives finance teams a clearer view of cash flow across markets.

It’s built for scale, whether you’re a fast-growing startup or an established enterprise expanding overseas. With strong integrations, transparent pricing, and security baked in, Airwallex makes it easier to run your business today and expand tomorrow.

Disclaimer: The information in this article is based on our own online research in Q3 2025. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [[email protected]]. This information doesn’t take into account your objectives, financial situation, or needs. 

FAQs

What is a payment processor?

A payment processor is the technology that moves money from your customer’s bank to your business account. It verifies transactions, handles security, and ensures funds are settled correctly.

How do payment processors work?

When a customer pays, the processor routes the details to the card network and issuing bank for approval. Once verified, the funds are transferred to your merchant account after the settlement period.

What should I look for in a payment processor?

Key features include transparent pricing, multi-currency support, strong security standards such as PCI DSS, fast payouts, and integrations with eCommerce or accounting platforms.

Which is the best payment processor in the UK in 2025?

The best processor depends on your business model. Airwallex is good for global operations with multi-currency accounts and like-for-like settlement. PayPal has wide consumer adoption, Stripe is popular with developers, and Square is strong for small businesses with in-person sales.

How much do payment processors charge?

Fees vary by provider. UK card transactions typically cost between 1% and 2% plus a fixed charge. International card fees are higher, often 2.5% to 3.5%. Extra costs can include FX markups and settlement fees.

How can I reduce payment processing fees?

Match the pricing model to your transaction volume, use like-for-like settlement to avoid FX conversion, and choose a processor with transparent fees and integrations that cut third-party costs.

Are payment processors secure?

Yes, the leading payment processors comply with PCI DSS and use encryption and fraud prevention tools. Always check that your provider meets UK and EU standards, including Strong Customer Authentication (SCA).

Can payment processors handle multiple currencies?

Some do, some don’t. Airwallex, Stripe, Adyen, and Revolut Business support multi-currency settlement. PayPal, Shopify Payments, and Square limit settlement to local currencies, which can increase conversion costs.

How fast are payment processor payouts?

Payout times range from instant to five business days depending on the provider, currency, and account setup. Faster settlement is often available for an additional fee.

What’s the difference between a payment gateway and a payment processor?

A payment gateway is the software interface that captures and encrypts customer payment details. The payment processor is the system that communicates with banks and card networks to move the money. Many providers bundle both together.

Which banks support batch transfers?

Many leading UK and global banks—including HSBC, Barclays, NatWest, and Lloyds—offer batch payment options, usually via business banking portals or file upload features. Modern fintech providers like Airwallex also support batch transfers, often with simpler templates, enhanced automation, and fewer restrictions around volume or countries.

How can a business transfer money internationally?

Businesses can transfer money internationally using business accounts or fintech platforms with multi-currency support and local payment rails. The steps typically include setting up a business account, entering recipient details, choosing payout currency, validating compliance, and submitting transfers, with automation and integration features available from providers like Airwallex, Stripe, or Adyen.

Sources

• paypal.com/uk/business/paypal-business-fees

• stripe.com/gb/pricing

• adyen.com/en_GB/pricing

• help.shopify.com/en/manual/payments/shopify-payments/supported-countries/united-kingdom

• squareup.com/gb/en/pricing

• revolut.com/business/pricing