Starting a business in the UK is exciting, but it also comes with a long list of challenges especially when it comes to taking payments. Whether you’re selling online, in person, or both, having the right payment solution from day one can save you time, money, and headaches.
In this guide, we’ll explore the best payment solutions for startups in the UK, tailored to small budgets, fast growth, and multi-channel operations. Let’s dive in.
1. Square
Square is ideal for startups looking for a quick and simple way to get up and running. With no monthly fees and a free POS app, you only pay a small fee per transaction. The reader connects to your phone or tablet and works seamlessly across retail, hospitality, and service-based businesses.
Key Features:
-
Free POS software
-
No monthly fees
-
Accepts chip, contactless, and mobile payments
-
Works online and in-store
Best For: Pop-ups, new stores, freelancers, and businesses wanting a simple all-in-one solution.
2. Paymentsave
Paymentsave is a UK-based payment provider focused on supporting small businesses and startups. It offers affordable card machines, fast setup, and flexible payment solutions. What sets Paymentsave apart is its Merchant Cash Advance service, which gives growing businesses access to funds based on future sales.
Key Features:
-
Contactless and chip & PIN terminals
-
No monthly fees for many plans
-
Merchant cash advance options
-
Great customer support
Best For: Startups that need in-person payment options and might require future funding for growth.
3. SumUp
SumUp is known for its compact card readers and no-fuss setup. It’s ideal for mobile traders, freelancers, or new ventures testing markets. You only pay a fixed percentage per transaction and can take payments via Bluetooth-connected devices or even via payment links.
Key Features:
-
Fixed 1.69% transaction fee
-
No monthly fees
-
Accepts all major cards and wallets
-
Payment links and invoices available
Best For: Market stalls, tradespeople, hairdressers, and mobile service providers.
4. Zettle by PayPal
Zettle offers a flexible card reader along with inventory and staff management tools built into its POS app. You can start small and scale easily as your team grows. Backed by PayPal, Zettle is also highly secure and widely trusted in the UK.
Key Features:
-
Free POS software
-
Contactless and chip payments
-
Easy inventory tracking
-
Multiple user support
Best For: Startups with growing teams or those selling a range of products.
5. Stripe
If your startup is online-only or you’re building an app, Stripe is the developer-friendly payment platform you want. It’s trusted by thousands of UK businesses for its flexibility and powerful integrations. While setup can be more technical, it offers unbeatable features for digital-first startups.
Key Features:
-
Custom checkout flows
-
Recurring payments and subscriptions
-
Invoicing and fraud protection
-
Multi-currency support
Best For: SaaS businesses, ecommerce startups, and online marketplaces.
6. PayPal
PayPal is one of the most recognised names in payments. For UK startups, it offers a simple way to accept payments without a full ecommerce store. You can use PayPal buttons, links, and invoices, and even pair it with Zettle for in-person transactions.
Key Features:
-
Accepts cards, wallets, and PayPal balance
-
Built-in fraud protection
-
Easy integration with most website builders
-
Works well with marketplaces
Best For: Online sellers, freelancers, and startups using platforms like Etsy or eBay.
What to Look for in a Startup Payment Solution
When choosing the right payment system for your new business, consider:
-
Ease of setup – You shouldn’t need a tech team to get started.
-
Low startup costs – Avoid high upfront fees or long contracts.
-
Multiple payment options – Let customers pay how they want: card, contactless, mobile wallets, etc.
-
Scalability – Choose a solution that can grow with you.
-
Customer support – You’ll want help available when things go wrong.
