How to take payments online as a UK small business

Customers in the UK expect to pay by card — and increasingly, they expect to do it online. Whether they're booking an appointment, ordering a product, or paying an invoice, the payment process should be quick, secure, and digital.

If you're not yet set up to take payments online, you're making it harder to get paid. This guide explains every option available to UK small businesses — from the simplest to the most sophisticated — so you can choose what fits your business right now.

Why taking payments online matters for UK SMEs

The shift away from cash has been dramatic. UK Finance data shows cash now accounts for a small fraction of total payments — most customers pay by card, contactless, or digital wallet. And a growing number want the option to pay before they even arrive at your premises.

For small businesses, taking payments online opens up several practical advantages:

• Get paid faster. Online payments clear quickly. No waiting for cheques, no bank transfer delays, no chasing.
• Reduce admin. Automated payment confirmation means less time on the phone or following up by email.
• Improve cash flow. Collect deposits upfront, or get paid as soon as the invoice lands.
• Reach more customers. Some customers won't book or buy if they can't pay online.

What options do UK small businesses have for taking payments online?

There's no single "best" way to take payments online — it depends on your business model and how you typically interact with customers. Here's a breakdown of the main options.

1. Pay by link

The simplest way to take online payments. You generate a payment link from your dashboard and send it to the customer via text, email, or WhatsApp. They click the link, pay by card or digital wallet, and you're done.

Best for: Tradespeople, consultants, personal service businesses, anyone who invoices or takes bookings without a website.

Pros: No website required, fast setup, works on any device.

Cons: Not ideal for businesses processing hundreds of transactions a week — it doesn't scale to a full product catalogue.

2. Digital invoicing with payment links

An evolution of pay by link. Instead of just sending a link, you send a professional branded invoice that includes a payment button. The customer clicks it and pays instantly.

Best for: Freelancers, tradespeople, B2B service businesses, anyone who invoices regularly.

Pros: Looks professional, integrates payment into your invoicing workflow, easy to track what's paid and what isn't.

Cons: Still requires you to create invoices manually for each transaction.

3. Hosted payment pages

A hosted payment page is a secure checkout page that lives on your payment provider's servers. You link to it from your website, social media, or marketing materials. Customers land on the page, enter their details, and pay.

Best for: Businesses with a website that want a simple checkout without building a full e-commerce store.

Pros: No complex integration required, secure by design, works with your existing website.

Cons: Less flexibility over design than a fully custom checkout.

4. Payment gateway integration

For businesses with an existing website, a payment gateway lets customers pay without leaving your site. The gateway handles the secure processing in the background.

Best for: E-commerce businesses, service businesses with a booking or checkout flow on their website.

Pros: Seamless customer experience, fully integrated with your website.

Cons: Requires some technical setup (usually via a plugin or API integration depending on your platform).

5. Virtual terminal

A virtual terminal is a secure web-based interface that lets you take card payments manually — by phone, for example. You log in, enter the customer's card details (provided by the customer verbally), and process the payment.

Best for: Phone-based sales, mail order businesses, businesses taking payments from customers who can't use a link or payment page.

Pros: No hardware needed, works for any card-present or card-not-present scenario.

Cons: You're manually entering card details, which means PCI compliance obligations are stricter.

6. Express checkout and social payments

Some payment platforms allow you to add payment buttons directly to your social media pages, WhatsApp Business profile, or marketing emails — so customers can pay without ever visiting your website.

Best for: Businesses that sell directly through social media or messaging channels.

Pros: Reduces friction in the customer journey, meets customers where they already are.

Cons: Works best alongside a broader payment setup rather than as a standalone solution.

How to choose the right online payment method for your business

The right option depends on a few key factors.

How do your customers typically interact with you?

If most of your business happens in person or over the phone, pay by link and digital invoicing are the fastest wins. If customers find you online and expect to buy or book without speaking to anyone, you'll need a hosted payment page or gateway integration.

Do you have a website?

If you have an existing website, a payment gateway or hosted checkout page makes sense. If you don't have a website — or don't want to maintain one — pay by link and digital invoicing let you take online payments without one.

How many transactions do you process?

Low to medium volume: pay by link and digital invoicing are fast and practical. High volume: you'll want a more automated setup like a gateway integration or hosted checkout that doesn't require manual action for each transaction.

What's your cash flow situation?

Settlement speed matters. Check how quickly funds arrive in your account with each provider. Next-day settlement is now the standard expectation for UK SMEs, but not all providers deliver it.

What to look for in an online payment provider

Once you know what type of setup you need, here's what to check when comparing providers.

Transaction fees

Online payments typically carry a slightly higher processing fee than in-person payments. Compare rates carefully, and watch for hidden charges like currency conversion fees, refund fees, or monthly minimums.

Accepted payment methods

At minimum, your online checkout should accept Visa, Mastercard, and American Express. Apple Pay and Google Pay support significantly increases conversion rates — especially on mobile.

Security and PCI compliance

Your payment provider should be fully PCI DSS compliant. This means cardholder data is handled securely and you're protected against the risk of a data breach. A reputable provider will handle all the security obligations on your behalf.

Settlement speed

How quickly does the money arrive? For most small businesses, next-day settlement (Monday to Friday) is the practical gold standard. Longer delays create cash flow challenges — especially during busy periods.

Integration with your existing tools

Check whether the payment provider integrates with tools you already use — accounting software like Xero or QuickBooks, booking systems, CRM platforms. Integration reduces admin and keeps your data joined up.

Support

When something goes wrong — and occasionally it will — you want to be able to reach a human quickly. Check whether the provider offers phone or chat support, and whether it's UK-based.

Common mistakes UK small businesses make with online payments

Not offering enough payment methods

If a customer wants to pay by Apple Pay and you don't support it, you've lost the sale. Cover the basics — cards, Apple Pay, Google Pay — as a minimum.

Slow settlement causing cash flow problems

Some providers hold funds for several days before releasing them. If you're managing tight cash flow, a provider with next-day settlement can make a significant difference.

Hidden fees eroding margins

A low headline rate can look attractive until you see the charges for refunds, chargebacks, international cards, or currency conversion. Always ask for a full breakdown of fees before signing up.

Setting up too many disconnected tools

Some businesses end up with one provider for invoicing, another for card payments, and another for online checkout. The data doesn't join up, reconciliation is painful, and the admin is constant. A single platform that handles all payment types in one place is almost always better.

How Stored helps UK small businesses take payments online

Stored is an all-in-one payments platform built specifically for UK SMEs. It brings together every payment method you need — in one dashboard, with one settlement, and one monthly statement.

For online payments, Stored offers:

• Pay by link — generate and share payment links in seconds
• Digital invoicing — professional invoices with embedded payment buttons
• Hosted e-commerce pages — take online orders without a complex website
• Virtual terminal — take payments over the phone from any browser
• Express checkout and social payments — meet customers wherever they are
• Payment gateway — integrate with your existing website

Online payments with Stored are processed at 1.0%, and in-person at 0.8% — transparent pricing, no hidden fees. Hardware starts from just £1 per month, and bespoke rates are available for businesses processing over £200k.

Settlement is next-day (Monday to Friday), and all payments — in-person and online — land in the same dashboard so reconciliation is simple.

Stored is rated 4.8/5 on Trustpilot by UK merchants, and is backed by technology partners including Worldpay, Fiserv, and Cashflows.

Take the next step

Whether you're just starting out with online payments or looking to simplify a setup that's grown too complex, there's a practical option that fits.

Sign up to Stored for free and start taking payments online today. Or book a demo to talk through which setup makes the most sense for your business.