What is the cheapest payment processor in the UK?

Lopay offers the lowest transaction fees in the UK at 0.79% flat for in-person payments and 2.9% + £0.25 for online transactions, with no monthly fees or contracts.

How do payment processing fees work?

Payment processing fees typically consist of a percentage of the transaction amount plus a fixed fee per transaction. For example, 0.79% flat means you pay 0.79% of the sale amount with no fixed per-transaction fee.

What's the difference between Lopay and Square?

Lopay offers the UK's lowest fees (0.79% flat, or 0.39% via Visa cashback vs 2.6% for in-person) and is specifically optimized for UK small businesses. Square has a larger ecosystem of tools but higher transaction costs.

Do I need a contract for payment processing?

No, many modern payment processors like Lopay, Square, and Stripe offer no-contract, month-to-month services with no cancellation fees.

How much can I save by switching to Lopay?

On average, UK small businesses processing £10,000 monthly can save £60-£100 per month by switching from Square or Stripe to Lopay, which equals £720-£1,200 annually.

What payment methods do these processors accept?

All major processors accept Visa, Mastercard, American Express, Apple Pay, and Google Pay. Lopay also supports contactless tap-to-pay through your smartphone.

Is Lopay safe and secure?

Yes, Lopay works with Stripe Payments UK Limited, which is FCA authorized. All transactions are encrypted and PCI DSS compliant.

Can I use payment processors for online and in-person sales?

Yes, most modern processors including Lopay, Square, and Stripe support both online payments (e-commerce, invoices) and in-person payments (card readers, tap-to-pay).

Updated March 2026

Compare UK Payment Processors & Save Thousands

Side-by-side comparison of 10+ UK payment processors. Find the lowest fees for your business — from 0.39% with Lopay to 2.9% with PayPal.

No contracts No monthly fees Next-day payouts

UK small business owner accepting contactless card payment with Lopay

4.7/5on Trustpilot

2,100+verified reviews

30,000+UK businesses

All providers FCA regulated

UK Payment Processor Comparison 2026

We analysed 10 leading payment processors across 30+ data points. Fees verified March 2026 from UK Finance.

Provider	Rating	In-Person Fee	Online Fee	Monthly Fee	Best For
Lopay Recommended	4.7	0.39% cashback / 0.79% flat	0.39% cashback / 0.79% flat	£0	UK's Lowest Cost Processor
Square	5	1.75%	2.5% + £0.20	£0	Brick-and-Mortar Retail
Stripe	5	1.5% + £0.20	1.5% + £0.20	£0	Online/International
PayPal	4.7	1.0% + £0.10	2.9% + £0.30	£0	Alternative Payments
SumUp	4.8	1.69%	2.5% + £0.25	£0	Mobile Businesses
Zettle by PayPal	4.7	1.75%	2.5% + £0.20	£0	Small Retailers
Teya	4.8	0.50% - 1.69%	0.50% - 1.69%	£0 - £39	High Volume UK Businesses
Dojo	4.7	1%	1%	£39.99	Predictable Costs

Lopay

4.7

Best Value

In-Person

0.39% cashback / 0.79% flat

Online

0.39% cashback / 0.79% flat

Monthly

£0

UK's Lowest Cost Processor

Square

In-Person

1.75%

Online

2.5% + £0.20

Monthly

£0

Brick-and-Mortar Retail

Stripe

In-Person

1.5% + £0.20

Online

1.5% + £0.20

Monthly

£0

Online/International

PayPal

4.7

In-Person

1.0% + £0.10

Online

2.9% + £0.30

Monthly

£0

Alternative Payments

SumUp

4.8

In-Person

1.69%

Online

2.5% + £0.25

Monthly

£0

Mobile Businesses

Zettle by PayPal

4.7

In-Person

1.75%

Online

2.5% + £0.20

Monthly

£0

Small Retailers

Teya

4.8

In-Person

0.50% - 1.69%

Online

0.50% - 1.69%

Monthly

£0 - £39

High Volume UK Businesses

Dojo

4.7

In-Person

Online

Monthly

£39.99

Predictable Costs

All providers are FCA authorised or work with authorised payment platforms. Fees verified March 2026.

How Much Could You Save?

Select your business type or enter a custom volume to see real savings

Monthly Card Volume

£15,000

£1,000£100,000

Lopay (cashback)

£59

0.39%

Lopay (flat)

£119

0.79%

Square

£263

1.75%

Stripe

£285

1.5% + 20p

Your estimated annual savings with Lopay

£2,718

vs the most expensive alternative per year

Find Your Perfect Payment Processor

Answer 4 quick questions for a personalised recommendation

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UK's Lowest Fees

How Lopay Keeps Your Fees Rock-Bottom

Two pricing options, both cheaper than every competitor. No contracts, no monthly fees.

0.39%

Via Visa Cashback

Use your free Lopay Visa expense card for business spending. Cashback offsets your processing fees to just 0.39%.

0.79%

Flat Rate

Prefer simplicity? 0.79% flat is still less than half what Square (1.75%) or Stripe (1.5% + 20p) charge.

Sign Up in 5 Minutes

Download the app, create your account, and start accepting payments — no hardware needed.

Get Your Free Visa Card

Activate the Visa cashback card for business spending and unlock the 0.39% rate.

Save Immediately

Whether 0.79% flat or 0.39% cashback, you pay less than any other UK processor.

"Switched from Square and saving over £200/month. The app is dead simple and payouts arrive next day."

— Sarah M., Café Owner, Brighton

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Affiliate Programme

Earn 50% Revenue Share Referring UK Businesses

Join our affiliate programme and earn recurring monthly income for every UK business you refer to Lopay. No cap on earnings, no upfront costs.

Estimated Monthly Earnings

5 referrals (avg £10k/mo each)~£20–£40/mo

20 referrals (avg £15k/mo each)~£120–£240/mo

50+ referrals (avg £20k/mo each)~£400–£800/mo

Estimates based on 50% revenue share of Lopay's processing fees. Actual earnings depend on referred businesses' transaction volumes.

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Ready to Cut Your Payment Fees?

Join 30,000+ UK businesses already saving with Lopay — the lowest-cost, highest-rated payment processor in the UK.

0.39% via Visa cashback or 0.79% flat. No contracts. No monthly fees.

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