Choosing the right payment processor can save your UK small business thousands of pounds annually. Lopay has emerged as a competitive option for SMBs, promising lower fees and transparent pricing. But does it live up to the hype? In this comprehensive review, we examine Lopay's pricing structure, features, customer support, and how it stacks up against established competitors like Square, Stripe, and PayPal.
What is Lopay?
Lopay is a UK-based payment processing platform designed specifically for small and medium-sized businesses. Founded to challenge the high fees charged by traditional payment processors, Lopay offers card payment solutions for both in-person and online transactions. The company is authorized by the Financial Conduct Authority (FCA) and works with authorized payment platforms to ensure compliance with UK financial regulations.
Unlike many competitors that target enterprise clients, Lopay focuses exclusively on SMBs—from independent salons and cafes to mobile service providers and retail shops. This specialization allows them to offer tailored features and pricing that make sense for businesses processing between £5,000 and £500,000 annually.
Lopay Pricing & Fees (UK)
Lopay's pricing model is refreshingly transparent compared to many competitors. The company offers tiered pricing based on your monthly transaction volume, with rates decreasing as your business grows. Here is the current UK pricing structure as of February 2026:
| Monthly Volume | In-Person Rate | Online Rate | Monthly Fee |
|---|---|---|---|
| £0 - £10,000 | 1.79% + £0.10 | 2.9% + £0.25 | £0 |
| £10,000 - £50,000 | 1.29% + £0.10 | 2.5% + £0.25 | £0 |
| £50,000+ | 0.79% + £0.10 | 2.2% + £0.25 | £0 |
What makes Lopay's pricing competitive: Unlike Square (1.75% flat rate) or Stripe (1.5% + £0.20), Lopay rewards growing businesses with lower rates. A salon processing £30,000 monthly would pay just 1.29% with Lopay versus 1.75% with Square—saving approximately £138 per month or £1,656 annually.
No hidden fees: Lopay does not charge monthly fees, setup fees, or early termination fees. This transparent approach contrasts sharply with traditional merchant account providers that often bury costs in fine print.
Key Features & Benefits
1. Multi-Channel Payment Acceptance
Lopay supports multiple payment channels to accommodate different business models. Whether you operate a brick-and-mortar shop, provide mobile services, or sell online, Lopay has you covered with card readers for in-person payments, virtual terminals for phone orders, and payment gateway integration for e-commerce websites.
2. Fast Payouts
One of Lopay's standout features is its next-business-day payout schedule. Funds from Monday transactions typically arrive in your bank account by Tuesday, significantly improving cash flow compared to processors with weekly payout cycles. For businesses operating on tight margins, this can make a meaningful difference in managing expenses and inventory.
3. No Long-Term Contracts
Lopay operates on a month-to-month basis with no long-term contracts or cancellation fees. This flexibility is particularly valuable for seasonal businesses or those testing different payment solutions. If Lopay does not meet your needs, you can switch providers without penalty.
4. Integrated Reporting & Analytics
The Lopay dashboard provides real-time transaction reporting, sales analytics, and customer insights. Business owners can track daily revenue, identify peak sales periods, and analyze payment method preferences—all from a single interface. The mobile app extends this functionality, allowing you to monitor business performance on the go.
5. Industry-Specific Solutions
Lopay offers tailored solutions for specific industries including salons and spas (with booking system integrations), restaurants and cafes (with table management), retail stores (with inventory tracking), and mobile services (with portable card readers and GPS tracking). These vertical-specific features eliminate the need for multiple software subscriptions.
Lopay vs Competitors: How Does It Compare?
To provide context, here is how Lopay stacks up against the three most popular payment processors in the UK market:
| Feature | Lopay | Square | Stripe | PayPal |
|---|---|---|---|---|
| In-Person Rate | 0.79% - 1.79% | 1.75% | 1.5% + £0.20 | 1.0% + £0.10 |
| Online Rate | 2.2% - 2.9% | 2.5% | 1.5% + £0.20 | 2.99% + £0.49 |
| Monthly Fee | £0 | £0 | £0 | £0 |
| Payout Speed | Next day | 1-2 days | 2-7 days | Instant (fee applies) |
| Contract | Month-to-month | Month-to-month | Month-to-month | Month-to-month |
| Best For | Growing SMBs | Retail | Online/Tech | Marketplaces |
Winner for in-person payments: Lopay offers the lowest rates for businesses processing over £50,000 monthly. PayPal is competitive for smaller volumes but lacks robust POS features.
Winner for online payments: Stripe edges ahead with its flat 1.5% + £0.20 rate, making it ideal for e-commerce businesses. However, Lopay becomes more cost-effective at higher volumes.
Winner for overall value: Lopay provides the best balance of low fees, fast payouts, and industry-specific features for UK small businesses operating both in-person and online channels.
Who Should Use Lopay?
Lopay is an excellent choice for UK small businesses that meet the following criteria:
Growing businesses: If your monthly transaction volume is increasing, Lopay's tiered pricing rewards your growth with progressively lower rates. A business scaling from £10,000 to £50,000 monthly will see their in-person rate drop from 1.79% to 1.29%—an automatic cost reduction without renegotiating terms.
Multi-channel merchants: Businesses that accept payments both in-person and online benefit from Lopay's unified platform. Rather than managing separate processors for different channels, you can consolidate everything under one provider with consistent reporting and reconciliation.
Cash flow-sensitive operations: The next-business-day payout schedule is particularly valuable for businesses with tight cash flow, such as restaurants that need to pay suppliers quickly or service providers who rely on immediate access to funds for operational expenses.
Industry-specific needs: Salons, restaurants, retail stores, and mobile service providers will appreciate Lopay's vertical-specific features. For example, salon owners can integrate with booking systems like Fresha or Phorest, while restaurant owners can connect with table management software.
Pros & Cons
Pros
- Lowest rates for growing businesses - Tiered pricing rewards higher volumes
- Next-day payouts - Faster access to funds improves cash flow
- No hidden fees - Transparent pricing with no monthly or setup costs
- Industry-specific features - Tailored solutions for salons, restaurants, retail
- No long-term contracts - Month-to-month flexibility
Cons
- Limited international support - Primarily focused on UK market
- Fewer integrations than Stripe - Smaller third-party app ecosystem
- Not ideal for very small businesses - Businesses under £5,000/month may find better rates elsewhere
Real User Reviews
"We switched from Square to Lopay last year and it's saved our salon over £400 per month. The next-day payouts have been a game-changer for managing cash flow, and the booking system integration works seamlessly with Fresha."
— Sarah M., Salon Owner, Manchester
"As a mobile dog grooming service, I needed a portable card reader with reliable connectivity. Lopay's reader works perfectly even in areas with weak signal, and the 0.79% rate means I keep more of what I earn."
— James T., Mobile Service Provider, Bristol
How to Get Started with Lopay
Getting started with Lopay is straightforward and can be completed entirely online in under 10 minutes. The application process requires basic business information including your company registration number, bank account details for payouts, and estimated monthly transaction volume. Most applications are approved within 24 hours, and you can start accepting payments immediately upon approval.
Lopay provides a free card reader for new merchants (worth £49), and the setup process includes a guided walkthrough of the dashboard and mobile app. Customer support is available via phone, email, and live chat to assist with any questions during onboarding.
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Final Verdict
Lopay earns a strong 4.5 out of 5 stars in our review. The platform delivers on its promise of transparent, low-cost payment processing for UK small businesses. The tiered pricing structure rewards growing businesses with progressively lower rates, making Lopay an excellent long-term partner as your business scales.
While Lopay may not have the extensive integration ecosystem of Stripe or the brand recognition of Square, it compensates with superior pricing for businesses processing over £10,000 monthly, faster payouts, and industry-specific features that eliminate the need for multiple software subscriptions.
For UK small businesses seeking a cost-effective, transparent payment processor with excellent customer support and fast access to funds, Lopay represents one of the best options available in 2026. The month-to-month contract structure means you can try the service risk-free and switch if it does not meet your needs.
Disclosure: This review contains affiliate links. If you sign up for Lopay through our links, we may earn a commission at no additional cost to you. This does not influence our editorial assessment, and we only recommend products we have thoroughly evaluated.