E-Commerce and Online Checkout
The online payment processing segment is defined by card not present transactions, subscription billing, recurring payments, and digital goods. Nearly 70% of online shopping carts are abandoned before checkout, making conversion optimisation and frictionless payment experiences critical competitive factors. Multi currency support, localised payment methods, and robust fraud prevention round out the core requirements. Stripe, PayPal, Adyen, and Checkout.com lead this segment.
For European and UK-heavy stores, wallet-led checkouts such as Revolut Pay have emerged as a low-fee complement to a primary card processor. The 1% + £0.20 published rate and 24-hour settlement profile fit small to mid-market e-commerce that wants to capture cost savings without rebuilding its full payment stack.
Point of Sale and In Store Payments
Physical retail and hospitality payments encompass countertop terminals, mobile POS (mPOS), and the emerging SoftPOS category, which turns any NFC enabled smartphone into a contactless payment terminal. SoftPOS is gaining significant momentum heading into 2026, with Worldline and Castles Technology partnering to deliver a SoftPOS solution in North America. Square, Clover (Fiserv), Zettle (PayPal), and SumUp lead the in store segment, with newer entrants such as Revolut Terminal and Tap to Pay on iPhone offering 0.5% + £0.02 in-person rates that pressure the legacy acquirer pricing model.
Embedded Payments and Vertical SaaS
One of the most significant structural shifts in the industry is the rise of software vendors embedding payment functionality directly into industry specific platforms. The restaurant management platform Toast, for example, combines POS, kitchen displays, inventory management, online ordering, and payment processing into a single system. Payment processing is not a feature; it is the economic engine. Toast monetises through both SaaS subscriptions and per transaction fees.
The same model is spreading across healthcare (patient portals with instalment billing), property management (rent collection integrated into landlord software), non profit (donation optimised checkout), agriculture (seasonal credit and crop receipt payments), and the gig economy (instant payouts for freelancers through platforms like Deel and Payoneer). Embedded finance is projected to be one of the largest growth categories across the payments ecosystem.
High Risk Merchant Processing
Certain industries face a fundamentally different payment processing environment because card networks and acquiring banks classify them as high risk. Online gambling, adult entertainment, nutraceuticals, CBD and cannabis, travel, and cryptocurrency exchanges all fall into this category. High risk merchants typically pay processing rates between 3.5% and 8% or more, face rolling reserves of 5% to 10% of processing volume held for six months or longer, encounter higher chargeback fees, and operate under the constant threat of account termination if chargeback ratios exceed network thresholds (typically 1% for Visa and 1.5% for Mastercard). For a detailed breakdown of providers, fees, and compliance requirements, see the complete guide to high risk payment processing.
Cross Border and Multi Currency Payments
International payments add layers of cost and complexity. Cross border fees can push total processing costs above 5% per transaction when interchange, scheme fees, acquirer markup, international card surcharges, and currency conversion are stacked together. The cost of remittances averaged 6.2% globally in 2023 for sending USD 200, well above the United Nations.
Marketplace and Platform Payments
Multi sided platforms where funds must be split between the platform operator and multiple sellers require sophisticated capabilities: sub merchant onboarding, KYC verification, split payment routing, and escrow functionality. Stripe Connect dominates this space, powering platforms like Shopify, DoorDash, and Instacart. PayPal and Adyen also offer comprehensive marketplace payment solutions.