With the growing demand for seamless, cost-effective, and secure online payment solutions, businesses in the UK are re-evaluating their reliance on PayPal.
While PayPal has been a dominant force in online payments, its fees, limitations, and customer service issues have prompted many UK companies to explore better options.
This blog highlights the top PayPal alternatives in the UK for 2025 to help businesses optimise their payment processes and enhance customer experience.
What Is PayPal?
PayPal is an online payment system that allows users to send and receive money electronically. Founded in the late 1990s, it revolutionised online commerce by making digital transactions more accessible and secure.
It is widely used by individuals and businesses alike, especially for e-commerce, freelancing, and international transfers.
Through a PayPal account, users can link their bank accounts or cards to send payments across borders or within the UK. Its buyer protection policies and brand reputation have made it a go-to choice for many.
However, concerns have emerged about its fees, account limitations, and customer service, leading many to explore alternatives that better align with modern business needs.
Why Are Payment Platforms Crucial for UK Businesses?
Digital payments are now the backbone of most business transactions. As consumer behaviour shifts toward online purchases and contactless transactions, payment platforms have become more than just tools, they’re business enablers.
Key reasons payment platforms are vital:
- Boost customer trust with secure, verified systems.
- Enable global expansion by supporting international currencies and transfers.
- Automate accounting with integrations for invoicing and bookkeeping.
- Provide flexibility with mobile apps and contactless support.
- Offer data insights for better financial decision-making.
In the UK, businesses need platforms that comply with local regulations, offer multi-currency support, and integrate seamlessly with popular tools.
The right platform can enhance customer experience, reduce transaction costs, and streamline financial workflows.
Why UK Businesses Should Look for PayPal Alternatives?
Despite its widespread popularity, PayPal presents several challenges that motivate UK businesses to explore better-suited alternatives. From fee structures to user restrictions, here’s why switching makes sense.
- High Fees and Currency Conversion Costs: PayPal’s transaction and currency conversion fees can quickly eat into profits, especially for small businesses and international sellers.
- Account Freezing and Limitations: User accounts can be frozen without notice for compliance reasons, which may disrupt operations significantly.
- Limited Business Features: While PayPal offers basic invoicing and payments, it lacks advanced financial tools many modern businesses require.
Business Pain Points with PayPal
| Concern | Impact on Business |
| High international fees | Reduces profit margins for cross-border sales |
| Inconsistent customer service | Delayed resolution of payment issues |
| Limited reporting capabilities | Insufficient insights for financial planning |
| Security holds on funds | Affects cash flow and daily operations |
| Not ideal for high-risk sectors | Restrictions in industries like gaming or crypto |
Given these challenges, it’s no surprise that UK companies are evaluating a growing list of more advanced, cost-effective, and flexible platforms.
What Features Should UK Businesses Look For in a Payment Platform?
Before choosing an alternative, businesses should understand which features are essential for success in 2025 and beyond. The right platform will do more than just process payments – it should enhance the business experience.
Essential Features to Consider:
- Low and transparent fees
- Multi-currency accounts
- Real-time exchange rates
- Instant or scheduled payouts
- Mobile and desktop accessibility
- PCI DSS compliance and SCA support
- Seamless integration with platforms like Shopify, WooCommerce, or Xero
Optional Advanced Features:
- Virtual or physical business debit cards
- Recurring billing and subscription support
- API access for custom payment flows
- Built-in invoicing and analytics
Selecting a provider that offers these features while complying with UK regulations is crucial for sustainable business growth.
How Do PayPal Alternatives Impact Customer Experience?
A reliable payment solution directly affects how customers perceive your brand. Frictionless checkouts, trusted payment gateways, and multiple payment options all contribute to a better user journey.
With PayPal alternatives, businesses can:
- Reduce cart abandonment by offering faster checkout processes.
- Offer preferred payment methods to meet customer expectations.
- Minimise errors or payment failures, ensuring smoother transactions.
- Brand their payment portals, enhancing trust and consistency.
Platforms like Stripe, Wise, and Square have developed mobile-first, customer-focused systems that eliminate friction and deliver seamless digital payment experiences.
What Are the Top 13 Best PayPal Alternatives UK?
1. Wise
Wise is a leading international payment platform offering transparent and low-cost global transfers. It is widely used by UK freelancers, small businesses, and ecommerce sellers due to its simplicity and mid-market exchange rate model.
Key Features:
- Multi-currency account: Hold and manage money in over 40 currencies.
- Mid-market exchange rate: Get the real rate with no hidden markups.
- Business tools: Supports batch payments, Xero integration, and open API access.
- International Wise card: Spend in 150+ countries; virtual cards available.
- Wise Interest: Optional earning potential on balances in GBP, EUR, and USD.
Business Highlights:
Wise charges a one-off fee of £45 to set up a business account. Transfers start from 0.33% depending on the currency and amount.
The Wise card is available for a one-time fee of £7 and allows fee-free ATM withdrawals up to £200 per month. Users also get local account details in currencies like USD, EUR, and AUD, ideal for receiving international payments as if they were local.
Pros and Cons:
| Pros | Cons |
| Transparent fees with no hidden costs | Not a full-service bank (no credit or loans) |
| Real mid-market exchange rate | One-time £45 business account setup fee |
| FCA-regulated for UK businesses | Some countries and currencies not supported |
| Supports integration with accounting platforms | Monthly ATM withdrawal limits before extra charges |
Wise is an excellent PayPal alternative for UK businesses focused on international transactions and low-cost currency management. Its combination of fair pricing, ease of use, and strong support makes it ideal for globally-minded entrepreneurs.
2. Stripe
Stripe is one of the most powerful and flexible online payment platforms for UK businesses, particularly those in e-commerce, SaaS, and mobile app sectors. Known for its customisation and developer-friendly tools, Stripe allows businesses to create tailored checkout experiences.
Key Features:
- Supports 135+ currencies and payment methods
- Customisable APIs for integration with websites and mobile apps
- Subscription billing and recurring payments
- Built-in fraud prevention (Radar)
- Instant payouts and analytics dashboard
Business Highlights:
Stripe uses a pay-as-you-go pricing model with no monthly fees. Standard UK card transactions are charged at 1.5% + 20p, while international cards are 2.5% + 20p. It also supports Apple Pay, Google Pay, and Buy Now Pay Later options.
Stripe integrates with popular platforms like Shopify and WooCommerce and offers detailed reporting and analytics for growing businesses.
Pros and Cons:
| Pros | Cons |
| Advanced APIs and developer tools | Setup may require developer knowledge |
| Transparent and competitive pricing | Not ideal for non-technical users |
| Excellent global payment support | Not suitable for high-risk industries |
| Seamless integration with e-commerce platforms | Limited support for in-person transactions |
Stripe is ideal for UK businesses looking for a scalable and programmable payment solution. Its powerful features and reliable performance make it a top alternative to PayPal for online-first companies.
3. Payoneer
Payoneer is a globally recognised payment platform designed for freelancers, service providers, and ecommerce sellers working with international clients. It supports multiple currencies and allows users to manage funds with ease.
Key Features:
- Receive payments in over 70 currencies
- Global Payment Service with local receiving accounts
- Prepaid Mastercard linked to the account
- Marketplace integrations (eBay, Amazon, Upwork)
- Working capital and business loans available
Business Highlights:
Payoneer accounts are free to open, but there are variable fees depending on transaction types. Currency conversions are charged at around 0.5% above mid-market rates.
Credit card payments incur a 3% fee, and ACH bank transfers cost 1%. Businesses also benefit from marketplace payouts and supplier payments via Payoneer.
Pros and Cons:
| Pros | Cons |
| Excellent for freelancers and cross-border sellers | ATM withdrawal and inactivity fees apply |
| Supports receiving money from marketplaces | Pricing varies and can be confusing |
| Global reach with 200+ country support | No in-person payment capabilities |
| Business financing tools available | Slower customer support response |
Payoneer is well-suited for UK professionals and ecommerce companies looking for borderless transactions. With its widespread acceptance and versatile tools, it’s a solid PayPal replacement.
4. Worldpay
Worldpay is a legacy payment provider in the UK known for offering secure card processing both online and offline. It caters to small businesses, enterprises, and high-volume retailers.
Key Features:
- In-store, online, and mobile payment options
- Subscription billing support
- Next-day settlement for transactions
- Fraud prevention and tokenisation
- Custom merchant account features
Business Highlights:
Worldpay offers tailored pricing depending on business size and transaction volume. Businesses can choose from pay-as-you-go or fixed monthly fees.
The platform supports UK debit and credit cards, along with contactless payments and POS systems. It also provides integration with accounting and inventory software for retailers.
Pros and Cons:
| Pros | Cons |
| Ideal for brick-and-mortar and hybrid businesses | Contracts can be long and inflexible |
| Local UK-based customer support | Setup fees may apply for new accounts |
| Supports multiple sales channels | Not cost-effective for low-volume businesses |
| Strong fraud protection tools | No free plan option |
Worldpay is ideal for UK businesses needing both in-person and digital payment capabilities. Its trusted reputation and broad services make it a long-standing alternative to PayPal.
5. Opayo (formerly Sage Pay)
Opayo is a secure and highly reliable payment provider built for UK SMEs and enterprises. It’s known for PCI compliance, fraud prevention, and seamless integration with Sage accounting software.
Key Features:
- Online, phone, and POS payments
- Fully PCI DSS Level 1 compliant
- Tokenisation and 3D Secure 2.0
- Repeat and recurring payments
- Dedicated support and onboarding
Business Highlights:
Opayo pricing starts at around £25/month depending on features and volume. It supports integration with major ecommerce platforms and provides in-depth transaction reporting.
With secure APIs and 24/7 fraud screening, Opayo is tailored for businesses that require compliance and custom control.
Pros and Cons:
| Pros | Cons |
| Excellent security and fraud protection | More expensive than newer fintech alternatives |
| Integrated with Sage and other software | Not ideal for microbusinesses |
| Accepts multiple payment types | Interface may feel outdated to some users |
| UK-based customer service | Contracts may lock users in for 12+ months |
Opayo is a strong fit for security-conscious businesses in regulated industries. With robust tools and reliable service, it’s a trustworthy replacement for PayPal.
6. Revolut Business
Revolut Business offers digital financial services for UK startups and companies, including banking, international payments, and budgeting tools. It’s especially popular for its sleek mobile experience and currency exchange capabilities.
Key Features:
- Hold, exchange, and transfer 30+ currencies
- Virtual and physical cards with spending limits
- Payment approvals, team management tools
- API for automation and integrations
- Budgeting and cashflow management
Business Highlights:
Revolut Business offers tiered plans from free to £45/month. International transfer fees are low, and you get interbank FX rates up to a certain limit. Advanced features include expenses tracking, analytics, and direct integration with apps like Xero.
Pros and Cons:
| Pros | Cons |
| Great mobile experience | Weekend currency exchange fees apply |
| Supports freelancers, startups, and SMEs | Advanced features limited to paid plans |
| Virtual cards and team controls | Customer support response times can vary |
| API integration for automation | Not available in all countries |
Revolut Business is best for UK-based digital entrepreneurs needing a flexible, tech-savvy solution. It goes far beyond payments and supports full business financial operations.
7. Atlantic Money
Atlantic Money is a fintech payment platform focused on low-cost, cross-border transfers. It is designed for simplicity, cost-efficiency, and transparency.
Key Features:
- Flat £3 transfer fee for all international payments
- Interbank exchange rates without markups
- Mobile-first experience
- Secure verification and regulation
- No percentage-based charges
Business Highlights:
Atlantic Money charges a fixed £3 fee per transfer regardless of the amount, making it extremely cost-effective for larger transactions.
The platform is FCA-regulated and designed with privacy and minimalism in mind. However, it currently supports a limited number of countries and currencies.
Pros and Cons:
| Pros | Cons |
| Very low, predictable fees | Limited to bank transfers only |
| Real exchange rates with no markup | No business API or batch payment feature |
| Intuitive mobile interface | Fewer supported currencies than competitors |
| UK-regulated and secure | No additional services like invoicing or lending |
Atlantic Money is ideal for UK businesses sending occasional or large international payments. It’s simple, secure, and extremely competitive in terms of cost.
8. Skrill
Skrill is a digital wallet and international money transfer platform widely used in the UK for fast and secure online payments. It’s suitable for freelancers, ecommerce users, and those who want to control their spending with a prepaid system.
Key Features:
- Digital wallet to hold 40+ currencies
- Send and receive international payments instantly
- Prepaid Mastercard available (physical and virtual)
- Support for cryptocurrency trading
- Integration with select ecommerce platforms
Business Highlights:
Skrill allows fee-free transfers between Skrill users and bank transfers in certain countries. Credit card transfers incur a 2.99% fee, and FX conversions have a 3.99% markup.
Idle accounts may be charged a service fee of €5. Businesses can use the Skrill payment gateway for accepting online payments and managing multiple payment channels.
Pros and Cons:
| Pros | Cons |
| Easy international transfers | High FX conversion fees |
| Secure and convenient prepaid Mastercard | Limited business account features |
| Accepts crypto and online gambling transactions | Idle account fee after 12 months of inactivity |
| Fast user-to-user transfers | Some services only available in premium plans |
Skrill is ideal for UK businesses that prefer prepaid control, international reach, and cryptocurrency support. It’s a flexible alternative for digital-first entrepreneurs.
9. Amazon Pay
Amazon Pay is a trusted online checkout solution allowing customers to use their existing Amazon credentials on third-party websites. It offers speed, security, and familiarity — especially useful for businesses targeting Amazon users.
Key Features:
- Use Amazon credentials for payments
- Fast checkout with saved customer data
- Fraud detection and payment protection
- Supports desktop and mobile browsers
- Merchant tools for tracking and analytics
Business Highlights:
Amazon Pay charges merchants around 2.7% + 30p per transaction. It doesn’t require customers to register a new account, which shortens the checkout process. While powerful in its trust factor, it can only be used by customers who already have an Amazon account.
Pros and Cons:
| Pros | Cons |
| Trusted by millions of UK customers | Limited to customers with Amazon accounts |
| Reduces friction during checkout | Not available for all industries |
| PCI compliance and secure data storage | No support for recurring billing |
| Built-in fraud protection from Amazon | May raise concerns over data sharing with Amazon |
Amazon Pay works well for UK businesses that want to reduce checkout times and leverage Amazon’s brand recognition. It’s a great option for increasing conversions with familiar buyers.
10. Square
Square is an all-in-one payment solution built for small to medium businesses looking for seamless in-person and online payment capabilities. Known for its intuitive hardware and software combo, Square helps manage payments, inventory, and sales.
Key Features:
- POS systems with mobile card readers
- Accepts contactless and chip cards
- Online invoicing and store builder
- Sales reports and customer insights
- Supports Bitcoin payments in the UK
Business Highlights:
Square charges 1.75% per in-person UK card transaction and 2.5% for manually entered payments. It also offers ecommerce tools for building websites, selling online, and managing customer relationships. Its all-in-one dashboard allows businesses to manage operations from a single platform.
Pros and Cons:
| Pros | Cons |
| Ideal for physical retailers and pop-up shops | Limited international expansion options |
| No monthly fees for basic usage | Less suitable for large enterprises |
| Bitcoin and mobile payments supported | Less flexible than Stripe for developers |
| Strong analytics and CRM tools | Card readers must be purchased separately |
Square is a comprehensive choice for UK businesses that sell in-store or on the go. Its affordability, simplicity, and hardware integration make it a practical PayPal alternative.
11. Braintree
Braintree, a service by PayPal, is a developer-focused payment platform offering flexible integrations and multi-currency support. It is ideal for businesses that require scalable payment processing and prefer advanced backend control.
Key Features:
- Supports PayPal, Apple Pay, Google Pay, and credit cards
- Customisable checkout experiences
- Subscription and recurring billing
- Advanced fraud protection
- PCI compliance and tokenisation
Business Highlights:
Braintree has no setup or monthly fees. It charges 1.9% + 20p per UK transaction, and slightly higher rates for non-UK cards. It supports transactions in over 130 currencies and is trusted by brands like Airbnb and Uber. Setup time can be lengthy due to custom integrations.
Pros and Cons:
| Pros | Cons |
| Accepts a wide range of payment types | Not ideal for beginners |
| Strong international and multi-currency support | Setup can be time-consuming |
| High-level fraud prevention | Not suitable for high-risk businesses |
| No monthly fees or long-term contracts | Limited to digital and card-based payments |
Braintree is a robust platform for businesses wanting to scale internationally with full control over the checkout process. It’s a developer’s dream and a powerful PayPal alternative.
12. Click to Pay
Click to Pay is a card-based online payment method supported by major card networks like Visa, Mastercard, and Amex. It provides customers with a secure and simple checkout experience without the need to re-enter card details each time.
Key Features:
- No account setup required for customers
- Fast and secure one-click checkout
- Supports multiple credit and debit cards
- Tokenised card information
- Compatible across browsers and devices
Business Highlights:
Click to Pay doesn’t charge users and works with merchants through their existing payment processors. It’s built on EMV® Secure Remote Commerce standards and integrates smoothly into online shops. It’s especially useful for merchants looking to increase mobile conversion rates.
Pros and Cons:
| Pros | Cons |
| Free to use with no additional setup for customers | Only works with supported card networks |
| Streamlined checkout for return customers | Limited merchant adoption in the UK |
| Extra security via multi-factor authentication | No business tools or account management features |
| Card data never shared directly with retailers | Requires customers to recognise and opt-in |
Click to Pay is a frictionless, secure PayPal alternative for businesses looking to improve checkout experience and conversion rates without building a custom payment flow.
13. Payone
Payone is a Europe-focused payment provider offering multi-channel solutions for B2C and B2B companies. It specialises in secure transaction processing for online and retail businesses.
Key Features:
- Supports SEPA, credit cards, and real-time bank transfers
- Custom checkout and recurring billing
- Detailed analytics and transaction reporting
- Compliance with PSD2, SCA, and GDPR
- Multi-currency support for EU and UK markets
Business Highlights:
Payone offers tailored pricing based on transaction volume and business type. It allows merchants to create branded payment portals and supports omnichannel experiences.
Although not as widely known in the UK, it’s expanding steadily in ecommerce and retail sectors.
Pros and Cons:
| Pros | Cons |
| Built for UK and EU merchants | Limited global brand recognition |
| Omnichannel support (online + POS) | May require onboarding through sales representatives |
| Strong compliance and security framework | Setup and configuration can take time |
| Recurring payments and white-label features | Not suited for microbusinesses or freelancers |
Payone is a strategic choice for UK businesses selling across Europe. Its emphasis on compliance, reporting, and flexibility makes it a compelling alternative to PayPal for B2B and high-volume ecommerce.
Comparison Table: Top Alternatives for UK Businesses
| Platform | Fee Type | Currencies Supported | Ideal Use Case | Unique Feature |
| Wise | Fixed % + FX | 40+ | Global freelancers, SMEs | Mid-market exchange rates |
| Stripe | Per transaction | 135+ | E-commerce and subscription models | Customisable developer APIs |
| Payoneer | Varies by service | 70+ | Global ecommerce & freelancers | Integrated marketplace payouts |
| Revolut | Tiered plans | 30+ | Digital-first businesses | All-in-one banking + payments |
| Square | Transaction-based | 10+ | Retail & event-based businesses | POS + loyalty integration |
| Braintree | Per transaction | Multi-currency | High-growth online platforms | Accepts PayPal, Apple Pay, cards |
| Skrill | FX-based + % fees | 40+ | Wallet-based payments | Prepaid Mastercards and crypto |
Conclusion
UK businesses in 2025 have more payment platform options than ever before. While PayPal remains a widely-used tool, many alternatives now offer better transparency, lower fees, faster processing, and features tailored to specific industries.
Whether you’re a freelancer, retailer, or ecommerce entrepreneur, selecting a payment solution that aligns with your needs is vital to growing and scaling efficiently in a digital world.
FAQs About PayPal Alternatives UK
What’s the easiest PayPal alternative to set up for a UK sole trader?
Revolut Business offers a quick online setup process with minimal documentation for sole traders. It also provides free plans and essential tools for freelancers.
Which PayPal alternative is best for high-risk industries in the UK?
Payoneer and Braintree are more flexible with industry risk categories. However, specific eligibility checks still apply.
Do these alternatives integrate with UK-based accounting software like Xero or QuickBooks?
Yes, Wise, Stripe, and Revolut all offer integration with Xero, QuickBooks, and similar platforms. This helps streamline bookkeeping and tax reporting.
Is there a free PayPal alternative for freelancers and small businesses in the UK?
Yes, Wise and Revolut offer free accounts with basic payment features. They are ideal for freelancers just getting started.
Can UK charities or nonprofits use PayPal alternatives for donations?
Stripe and Square both support donation-based transactions. They also offer reduced fees and tailored features for nonprofit organisations.
How do PayPal alternatives handle currency exchange rates for UK-based international sellers?
Platforms like Wise and Atlantic Money use real mid-market exchange rates. This reduces hidden costs and improves transparency.
Are there UK-specific regulations to be aware of when switching from PayPal?
Yes, alternatives must comply with FCA regulations, Strong Customer Authentication (SCA), and GDPR. Ensure any platform is properly regulated and transparent about its practices.
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