3 significant payment gateway providers in the UK

By Megha Bhattacharya

A payment gateway allows users to receive payments from their customers and securely deposit it into their bank accounts. A gateway is a software that authorises customers to conduct an online transaction through different payment modes like net banking, credit card, debit card, UPI or the many online wallets that are available these days. A payment gateway is a tool that businesses use to confirm their customer’s card details, making them vital for offline or online companies that authorise credit/debit card payments.

There are two types of payment gateways available – Onsite and Offsite. An onsite payment gateway allows clients to receive payments directly on their website. This means customers can enter their debit card details on the client website and are never directed away to the payment gateway providers website. An offsite payment gateway takes the customer from the organisation’s website to the payment gateways providers website to make a payment.

Here are the three important payment gateway providers in the UK that aim to offer secure and seamless transactions –

1. Stripe

Stripe provides payment gateway services in a range of APIs, allowing customers to have full control and easily integrate their new payment gateway into their online store. Stripe accepts payment in various currencies and offers extensive support for local payments.

Founded in 2010, Stripe is an Irish-American financial services and software as a service company dual-headquartered in San Francisco, California and Dublin, Ireland. The company primarily offers payment processing software and application programming interfaces for e-commerce websites and mobile applications. The company supports all major credit and debit cards worldwide, along with digital wallets such as Alipay, Amex Express Checkout, Apple Pay, Microsoft Pay, Visa Checkout and WeChat.

Recently, Afterpay, a BNPL service provider, announced a partnership with Stripe. Under the partnership, the companies will join forces to offer Afterpay’s payment service to Stripe merchants through an easy and seamless integration. The alliance allows both new and existing Stripe merchants to offer Afterpay, giving shoppers the opportunity to receive their items swiftly and pay in 4 instalments, without needing to take a traditional loan or pay upfront fees or interest.

2. PayPal

PayPal is an American company operating an online payments system in the majority of countries that support online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment gateway services for online vendors, auction sites, and many other commercial users. It charges a fee in exchange for benefits such as one-click transactions and password memory.

Recently, European payment services provider Nets announced that it is now offering PayPal as a payment option for its merchants in the Nordics. The development will allow the company’s customers in Denmark, Finland, Norway and Sweden to leverage PayPal on the Nets e-commerce platform NetsEASY. Nets already offers PayPal service in Germany along with integration with its online payment checkout in local currencies.

Starling also said that it has added PayPal’s iZettle to its Business Marketplace. The new development will facilitate the provision of in-depth transaction information to business owners. The integration of iZettle will give SMEs information about sales, fees, tips and taxes.

3. Adyen

The Dutch payments company, Adyen allows businesses to accept e-commerce, mobile, and point-of-sale payments. Adyen has more than 3,500 customers and is listed on the stock exchange Euronext. It was founded in 2006 and has a total capital amounting to $266 million. The Netherlands region currently has around 32 FinTechs with the total funds raised by them standing at $677 million.

Recently, Adyen expanded its collaboration with Microsoft with an aim to speed up payments innovation for both companies with the launch of Adyen Network Token Optimization. The new development enables the company to offer automated optimization of the use of tokens to increase authorization rates and will allow Microsoft to realise more revenue due to increased authorisation rates. The companies have been in collaboration since 2015.

Adyen provides end-to-end infrastructure connecting directly to Visa, Mastercard, and other preferred payment modes. The company has customers including Facebook, Spotify, Uber, Microsoft, Bonobos, Casper, and L’Oréal.

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