Why Finding the Right Payment Provider for E-Commerce Matters

Choosing the right payment provider isn’t just a technical decision — it affects every part of your online store, from conversion rates to profit margins. With card-processing costs under scrutiny and new payment technologies emerging, UK retailers who shop around are gaining a serious edge.

Why it pays to shop around

Many e-commerce businesses stick with the first provider they signed up to, even as their volume and fees change. Yet according to the Payment Systems Regulator (PSR), scheme and processing fees charged by Visa and Mastercard have risen by more than 25% in real terms since 2017. The Financial Times reports that UK regulators are considering further action over competition concerns.

At the same time, the checkout experience is now a critical part of customer retention. A poor or limited payment setup can cause customers to abandon carts — as TechRadar explains, fragmented or outdated payment infrastructures can cost retailers thousands in lost sales.

The main payment options for online stores

1. Payment Gateways

Payment gateways connect your online store to the card networks and banks, handling security, authorisation, and tokenisation. As London Loves Business notes, gateways play a “crucial role in ensuring secure and efficient transactions.”

Popular UK-focused gateways include Worldpay, Stripe, Square, and Adyen. Each offers different pricing structures, currencies, and fraud tools — so comparing them side-by-side is essential.

2. Merchant Acquirers / Processors

These are the banks or payment institutions that actually move money into your business account. Some gateways double as acquirers, offering one-stop solutions. Understanding settlement time, chargeback handling, and cross-border costs is vital when comparing acquirers.

3. Merchant Software & Integrations

Beyond payments, smart software can directly increase sales. Modern point-of-sale (POS) and e-commerce integrations now support tipping, loyalty schemes, inventory syncing, and advanced analytics. For example, SumUp and Zettle offer plug-ins for online payments that connect directly with physical store terminals, creating a unified view of sales.

Payment orchestration platforms also simplify multi-gateway management, routing transactions intelligently to reduce declines — a trend highlighted by Airwallex as key for merchants expanding internationally.

Why getting this right matters

Cost control: Even a 0.3% fee difference can add up to thousands per year in savings.
Conversion rate: Customers abandon carts if their preferred payment method isn’t available.
Global reach: If you plan to sell abroad, multi-currency and local-method support are essential.
Security and compliance: A trusted provider ensures PSD2, SCA, and PCI-DSS compliance.
Data and growth: Software that tracks sales and customer behaviour can inform marketing and inventory decisions.

How to compare providers effectively

• Request full pricing breakdowns — transaction, authorisation, monthly, and chargeback fees.
• Check contract terms, notice periods, and hidden setup costs.
• Review integrations: Shopify, WooCommerce, Magento, or custom API.
• Look for analytics dashboards, fraud detection, and tipping/upsell tools.
• Consider scalability: will fees drop as your volume grows?

The takeaway

Your payment provider isn’t just a cost centre — it’s part of your customer experience. By comparing gateways, acquirers, and merchant software, you can cut unnecessary fees, improve checkout speed, and build a setup that scales with your online business. As UK regulators continue to push for transparency, now is the perfect time to review your e-commerce payments stack and make sure you’re getting a fair deal.

Sources: Payment Systems Regulator (2025); Financial Times; TechRadar; London Loves Business; Statrys; Airwallex.