GoCardless vs Stripe vs PayPal Fees Compared UK 2026
If you’re running a UK business and need to accept payments, you’re probably comparing these three giants. Stripe, PayPal, and GoCardless all handle online payments, but they charge different fees and serve different needs. This guide breaks down exactly what you’ll pay in 2026 and helps you pick the right one for your business.
The main difference? Stripe and PayPal focus on card payments, while GoCardless specializes in Direct Debit from bank accounts. For many UK businesses, that difference alone could save you hundreds of pounds each year.
Quick Comparison Table
| Provider | Card Payment Fee | Direct Debit Fee | Best For |
|---|---|---|---|
| Stripe | 1.5% + 20p | Not available | E-commerce, online sales |
| PayPal | 1.49% to 3.49% | Not available | Flexible selling |
| GoCardless | Not available | 0.6% + 20p | Recurring bills, invoicing |
Stripe Pricing and Features
Price Breakdown
Stripe charges 1.5% plus 20p for UK domestic card payments. This applies to standard online card transactions. If you’re taking QR code payments, you’ll pay just 1.5% with a fixed fee for transactions over £10.
There are no monthly fees, setup fees, or hidden charges. You only pay when you process a transaction successfully.
Pros
- Lowest card payment fee in the UK at 1.5% + 20p
- No monthly or setup fees
- Excellent for e-commerce and online stores
- Strong global payment support
- Simple, transparent pricing
Cons
- No Direct Debit option for bank payments
- Requires technical integration (though it’s fairly easy)
- Not ideal for recurring billing through bank transfers
- Higher fees than Direct Debit alternatives for subscription businesses
Who It Suits
Stripe is perfect for online shops, SaaS companies accepting card payments, and any business where customers pay by card online. It’s especially good if you need global payment processing or complex checkout flows.
If your customers are spread across the world, Stripe’s international support makes it the natural choice. You’ll find it’s quick to set up and reliable at scale.
PayPal Pricing and Features
Price Breakdown
PayPal’s fees are wider ranging than Stripe. Standard fees run from 1.49% to 3.49% depending on your account type and payment method. The exact rate depends on your transaction volume and business category.
PayPal also charges additional fees for certain services like invoicing, so you need to read the fine print carefully.
Pros
- Trusted brand with huge customer recognition
- Lower entry barrier for new sellers
- Doesn’t require technical coding knowledge
- Built-in buyer protection
- Works well for marketplace and auction sales
Cons
- Higher fee range (up to 3.49% vs Stripe’s 1.5%)
- Less transparent fee structure
- Account holds and restrictions common for new sellers
- No Direct Debit option
- Customer support can be slow
Who It Suits
PayPal works well for small businesses just starting out, marketplace sellers, and businesses where non-tech customers need to process refunds themselves. It’s familiar to buyers and requires minimal setup.
If you’re selling on eBay or other platforms, PayPal is often already integrated. For one-off payments and variable transaction volumes, it’s less complicated than Stripe technically.
GoCardless Pricing and Features
Price Breakdown
GoCardless charges 0.6% plus 20p per Direct Debit transaction. This is a completely different approach to Stripe and PayPal because it uses Direct Debit from customer bank accounts instead of cards.
For recurring payments, this is 54% cheaper than card processing. There’s also a small per-transaction fee, but the percentage is much lower.
Pros
- 54% cheaper than card payments for recurring bills
- Direct Debit is faster to process and more secure
- Perfect for subscriptions and invoicing
- Lower chargeback rates than cards
- Simpler customer experience for recurring payments
Cons
- Only works in the UK and Europe
- Customers need UK bank accounts
- Slower payment collection (5-10 days)
- Not suitable for one-off online card purchases
- Fewer payment method options overall
Who It Suits
GoCardless is built for subscription businesses, gyms, charities, utilities, and any company that collects recurring payments from UK customers. If you’re billing the same customers monthly or annually, you’ll save serious money here.
SaaS companies, membership organizations, and invoice-based businesses see the biggest benefit. The lower fees add up fast when you’re processing dozens of recurring payments.
Full Feature Comparison
| Feature | Stripe | PayPal | GoCardless |
|---|---|---|---|
| Card Payment Fee | 1.5% + 20p | 1.49% to 3.49% | Not available |
| Direct Debit Fee | Not available | Not available | 0.6% + 20p |
| Monthly Fee | None | None | None |
| Setup Fee | None | None | None |
| Payment Types | Cards, wallets, QR | Cards, PayPal account | Direct Debit only |
| Invoicing | Yes, paid add-on | Yes, built-in | Yes, built-in |
| Recurring Billing | Yes, at card rates | Yes, at card rates | Yes, at debit rates |
| Global Payments | Yes, 135+ countries | Yes, 200+ countries | No, UK and Europe |
| API Integration | Developer-friendly | Complex setup | Developer-friendly |
| Customer Support | Email and chat | Email and phone | Email and phone |
| Settlement Speed | 2 business days | 1 to 3 days | 5 to 10 days |
| Chargeback Rate | Moderate | Moderate to high | Very low |
Which One Should You Pick
Scenario 1: You Run an E-commerce Shop
Use Stripe. You need card payments, your customers are checking out online, and you want the lowest possible fees. At 1.5% plus 20p, Stripe’s the cheapest option for one-off purchases.
Example: On a £100 sale, you’ll pay £1.70. PayPal would cost you £1.49 to £3.49 more. Over 1000 sales per month, that’s £50 to £180 extra in fees.
Scenario 2: You Have a Subscription Business
Use GoCardless. If you’re billing customers monthly or annually, Direct Debit will save you thousands. The slower settlement doesn’t matter when you’re taking recurring payments.
Example: On a £50 monthly subscription with 100 customers, Stripe costs £75 per month. GoCardless costs £30 per month. That’s £540 saved annually on just 100 customers.
Scenario 3: You’re Just Starting Out
Use PayPal or Stripe. PayPal requires less technical knowledge and builds customer trust instantly. Stripe is better if you want lower fees long-term and don’t mind learning the setup.
Most beginners choose PayPal because they’ve probably used it themselves. Once you grow, you can always switch to Stripe to cut fees.
Scenario 4: You Invoice Customers (B2B)
Use GoCardless. You’re not taking instant card payments, so card processing fees don’t apply. GoCardless lets you send invoices and collect via Direct Debit automatically.
This works perfectly for service businesses, consultants, and any company that sends invoices to clients. You’ll get faster payment than waiting for bank transfers.
Scenario 5: You Sell Internationally
Use Stripe or PayPal, depending on your needs. PayPal works in over 200 countries, while Stripe works in 135+. Both handle currency conversion (though you’ll pay for it).
GoCardless won’t work here because it’s UK and Europe only. If most sales are international, Stripe’s global infrastructure is more reliable than PayPal’s.
Real Cost Example
Let’s say you process £10,000 in payments per month as a UK business with recurring customers.
Stripe (card payments): 1.5% = £150 per month = £1,800 per year
PayPal (average 2.49%): 2.49% = £249 per month = £2,988 per year
GoCardless (Direct Debit): 0.6% = £60 per month = £720 per year
The difference between Stripe and GoCardless is £1,080 per year. The difference between PayPal and GoCardless is £2,268 per year. For a subscription business, these savings compound quickly.
Questions People Ask
Can I use all three providers at the same time?
Yes. Many businesses do this strategically. You might use Stripe for card payments in your online store, GoCardless for subscription billing, and PayPal as a backup payment option.
This approach gives you flexibility and lets you optimize fees across different payment types. Just make sure your accounting system can track payments from multiple sources.
Which provider has the best customer support?
GoCardless and PayPal offer phone support, while Stripe primarily uses email and chat. Stripe’s support is faster and more technical. PayPal’s support can be slow but handles complex account issues better.
For technical questions, Stripe wins. For general help, GoCardless is friendlier. Try each one’s support chat before committing.
What happens if a payment fails?
All three providers automatically retry failed payments. Stripe typically retries up to 3 times over several days. PayPal and GoCardless also retry, but GoCardless has lower failure rates because Direct Debit is more reliable than cards.
With Stripe and PayPal, about 2 to 3% of card payments fail. With GoCardless, it’s less than 1%. This means fewer customer service issues overall.
Do I need a business bank account to use these?
No, but you need a business bank account to receive payouts. All three providers will deposit money into your nominated UK bank account. Some require this to be a business account, while others accept personal accounts for sole traders.
Your bank will need you to prove your identity when you set this up. This is standard practice and protects against fraud.
Final Verdict
There’s no single winner because these platforms serve different purposes.
For e-commerce and online card sales: Choose Stripe. The 1.5% plus 20p fee is the lowest in the UK market, and the setup is straightforward. You’ll save hundreds on thousands of transactions.
For subscription and recurring billing: Choose GoCardless. At 0.6% plus 20p, it’s 54% cheaper than card processing. If you’re billing customers monthly, this is the clear winner financially.
For beginners with no technical skills: Choose PayPal. It’s the easiest to set up, your customers know it, and you don’t need to code anything. The higher fees are worth it for simplicity when you’re starting.
If you’re a mid-sized UK business with both card sales and recurring subscriptions, seriously consider using both Stripe and GoCardless together. You’ll optimize your fees across both payment types and give customers payment method flexibility.