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The 6 Best Payment Gateways for Magento 2

Our top 6 payment gateway choices for Magento 2

Payment gateways are not just for ecommerce websites, the same gateway providers are often used in brick and mortar shops as well.

The 6 Best Payment Gateways for Magento 2

We have all walked into a shop and past a ‘We Accept Credit Cards’ Sign like the one pictured. Generally we ignore them, but are subconsciously reassured that we can pay with our cards. Although the logos have changed over the years, the principle hasn’t. To stand the best chance of closing the sale, we need to recognise people like to pay by different methods and cater for as many as possible.  

There is such a large number of payment providers, merchants and aggregators on the market, choosing the right payment gateway for your Magento 2 store isn’t easy. Before we look into the best options for your store, it is important to understand how people like and want to pay for goods & services online.

Key Payment Method Statistics 

  1. Globally shoppers prefer to use eWallets (like Paypal or ApplePay) – 33%, followed by credit cards (23%) and debit cards (12%) (Worldpay Global Payments Report).
  1. By the end of 2019, nearly 2.1 billion consumers will use an eWallet to either make a payment or send money (Paypers Payment Methods Report).
  1. “Buy now, pay later” services such as Klarna, ClearPay and LayBuy have over 7 million UK customers (BBC Business News).

Now we know the statistics, let’s make it as easy as possible for people to buy. One in six checkout abandonments are caused by payment gateway issues, so it’s important we choose the right one for your Magento 2 store.

What is a payment gateway?

An eCommerce payment gateway is simply explained as a secure piece of 3rd party software that administers the payment within your Magento 2 store’s software. A payment gateway communicates between your store and your payment processor, who later receives the money from your customer. The payment(s) are then sent securely to a merchant after the appropriate checks are made.

By using a payment gateway merchants can stay secure, protecting their customers and themselves from the highest risk element of the purchase process, reducing fraud and theft.

How do payment gateways work? 

Ecommerce payments use closed functions to safely check, authorise and transmit sensitive personal data. 

The process starts when your Magento 2 store sends the value of a customer’s basket along with the card information entered during the final stage of the checkout page. Once the information is submitted, your Magento store will automatically encode and transmit the details.

These payment details are then securely received by our payment processor and a request is in turn sent to the issuing bank to authenticate the transaction. The payment is either approved or decline based upon the customer’s available balance (and other security factors) and the decision is returned to the payment processor. Finally the process is completed when the Magento store gets the final approval and you and your customer are made aware that the payment has gone through (or not).

The payment from your customer is collected by your processor and sent to you based on the payment gateway provider’s terms. This can vary from mere minutes to 21 days.

How to evaluate a payment gateway for your Magento 2 store?

You need to choose a payment gateway that suits both your business and your customer. Choosing the correct one(s) will greatly improve the performance of your store and conversion rate. You should look for a provider that not only gives you the functionality required now, but also the functions you are going to need as you grow. 

Based on your size, industry and the age of your business, you’ll find that certain providers may or may not accept your business. If you are on your first eCommerce store and planning to migrate to Magento 2 or to/from another platform then apply for an account early to avoid disappointment or unexpected delays in your project. 

When evaluating the payment gateway options for your Magento store payment, we suggest looking at these four key criteria:

  1. Security – this is a key matter for both your business and customers. Check for security credentials, fraud protection processes and reviews from other store owners.
  1. Convenience – how easy it is to integrate with Magento 2 (we’ll share some experience below).
  1. Capabilities – look for the payment gateways that offer you the right payment options based upon how your customers like to pay. This can vary based on location, age, average order values and demographics.
  1. Cost – consider per payment fees for processing, subscriptions and other possible costs. Remember there may also be a cost to you if the provider takes a long time to pay out.

Note: You can have more than one payment gateway. This is particularly handy to remember if you want to offer the widest choice of payment methods to your audience.

The Top 6 Payment Gateways 

Opayo (formerly SagePay) + Ebizmarts: Opayo Suite Pro (UK) for Magento 2 

Opayo payment gateway formerly Sagepay

Opayo Suite Pro (UK) for Magento 2 works hand-in-hand with Magento 2 and Sagepay to provide a smooth and secure payment process. Opayo is the new re-branded name of Sagepay who was acquired by Elavon in 2019, who are market leaders in payment security and fraud reduction. Opayo will process payment from all the major banks and credit cards with the highest level of card data security. 

Sagepay has always been a solid and reliable payment gateway and we expect to see Elavon improve and modernise the platform – and hopefully finally add Apply Pay and Google Pay!

The extension costs £280. You’ll need a SagePay account also – costs vary.


Apple Pay on Magento 2
Apple Pay on Magento 2 in Safari on Desktop

Braintree is one of the fastest-growing payment gateways and is now built into Magento 2. Since being bought out by Paypal, Braintree has further established itself as one of the best payment gateways on the market. It offers a huge range of payment options including Paypal, credit/debit card, Google Pay, Apple Pay and more. 

Braintree credit card window on Magento 2 checkout page
Braintree credit card window on Magento 2 checkout page

The fact it has been specifically designed to work within Magento 2 stores makes this a really attractive offering. It is robust, highly secure and delivers a seamless user experience. The downside is that it is slightly more expensive than other payment processors, but you can expect to make those costs back as customers can easily pay for your goods or services by their preferred method.

Standard pricing = 1.9% + £0.20 per transaction. 

UPDATE – Braintree has been removed as a core module in Magento and now is available from the marketplace with a more feature rich version by Gene Commerce, Braintree official partners.

PayPal Checkout

Paypal Checkout is one of the top picks for both customers and store owners. Its reputation in the market has grown massively and is no longer seen as “the way to pay for stuff I bid for on eBay”.

PayPal appeals to those who have an account set up – which is over 20 million of us Brits – and easily pay for goods directly from a bank account or any of their store cards. PayPal is now also offering a suite of credit products to help people spread the cost. 

There is an extra level of security and issue resolution, which customers who may be new to your store will like. Having this level of protection may further encourage them to complete a purchase. Lastly, American Express users will be pleased to see the PayPal logo as it will allow them to checkout and earn their rewards.

Paypal pricing is 2.9% and £0.20 per transaction.


Stripe is one of the biggest names in the world of payment gateways. It supports currencies from over 100 countries and has become the choice for many SaaS companies, subscription businesses and apps. Stripe is particularly good if you need to charge recurring payments or subscription fees without the need to store payment details. Storing such details can be extremely costly.

A big selling point is that users aren’t directed off site, like with many other payment gateways. This makes the payment process quicker and looks more professional. You’ll need the Mageplaza Stripe Extension to fully harness the power of this payment powerhouse, but the fees are modest if you need the features that Stripe offers.

The Mageplaza Extension is £110 and Stripe charges 1.4% + £0.20p per transaction.


WorldPay handles over 30 million transactions everyday and is one of the most widely used gateways. Like Braintree, it is also built into Magento 2. It offers customers several ways to pay and is an excellent choice if you require handheld card machines for physical stores as well. 

Mageplaza also offers an excellent payment extension: Magento 2 WorldPay payment extension. This extension will allow you to take eWallets payments and improve your customer experience by securely saving card details in the WorldPay Vault. Like with Stripe, payments are processed on page, saving crucial seconds in the payment process. 

The Mageplaza extension costs c£180 and WorldPay charges around 2.70% + £0.20, but can vary.

Klarna Checkout

As well as your normal credit card transactions Klarna offers your customers the chance to “buy now, pay later” without the need for a credit check.

Klarna payment gateway
Look out for the Klarna Pay Later badge.

Customers can spread payments over a up to 36 months, or an interest-free 3 installment method. This will be particularly good news for the many watch, jewellery and sunglasses stores that prefer to use Magento.

Klarna is aggressively marketing in the UK so adding them to your offering will no doubt spark interest. Klarna is built in as default to Magento 2 so it will easily work alongside your other payment processor(s). 

Pricing is capped at 2.49% and £0.20 per transaction. Charges may be lower depending on volumes.

Conclusion: What is the best payment gateway for Magento 2?

There is no obvious one choice, but Braintree and Klarna combined will offer you and your customers the best choice with the easiest implementation for you. Within your Magento 2 store you have the ability to checkout with almost any currency, eWallet, card type and also offer credit for larger purchases.

If you are not selling individual products but you offer a subscription based/recurring products, then we strongly advise Stripe to handle this. However Magento 2 now has a recurring payment module as default, so this should be able to easily handle any payment gateway you choose.

As with most of these decisions its a balance between the implementation, ongoing cost of maintenance and the rates that you are offered by the provider.

A final thought is to always ensure that you have had the decision from the payment gateway to accept you as a client before you proceed with development. This will save disappointment and uninvited costs.