Card and online payments as a sole trader

Why Accept Card Payments?

In 2025, convenience is king. Customers want quick, secure, and flexible ways to pay, whether they’re buying from your market stall, booking your services online, or ordering a product. Offering card payments as a sole trader can:

• Boost sales: Studies show that customers spend more when paying by card compared to cash.
• Attract new customers: Many people don’t carry cash anymore—don’t lose a sale because you can’t accommodate them.
• Enhance professionalism: Accepting card payments signals that you’re a modern, credible business.
• Streamline bookkeeping: Digital transactions are easier to track, saving you time on manual records.

For sole traders, this shift isn’t just about keeping up—it’s about staying ahead. Whether you’re a plumber, a crafter, or a consultant, card payments open doors to growth.

The rise of mobile wallets

Accepting Apple Pay and Google Pay, its Android equivalent, is straightforward for sole traders using modern payment providers. Stripe supports both, allowing customers to pay via their iPhone, Apple Watch, or Android devices with NFC-enabled digital wallets, alongside contactless cards. Square, SumUp, and PayPal also facilitate Apple Pay and Google Pay transactions, often through card readers or online payment links, with fees ranging from 1.69% to 2.9% per transaction. These options cater to the increasing preference for mobile payments, offering secure, fast checkouts—whether in-person with Tap to Pay or online—making them ideal for sole traders aiming to meet diverse customer needs.

Does It Cost to Accept Card Payments?

Yes, there’s a cost, but it’s often more affordable than you might think. Payment providers typically charge a small percentage per transaction, plus sometimes a flat fee. Here’s what to expect:

• Transaction fees: Usually between 1% and 3% depending on the provider and card type (e.g., debit vs. credit).
• Hardware costs: If you need a card reader for in-person payments, you might pay £20–£50 upfront.
• Monthly fees: Some providers charge a subscription, but many, like Stripe, have no monthly fees—perfect for sole traders with fluctuating income.

For example, Stripe charges 1.5% + 20p for UK card payments, with no setup or monthly costs. Compare this to cash handling—bank deposit fees or time spent at the bank—and the cost-benefit often swings in favour of card payments.

Which Providers Allow You to Accept Card Payments?

Several providers cater to sole traders in the UK, each with unique strengths. Here are the top options:

Stripe: The No-Code Champion

Stripe stands out for its flexibility and ease of use. It’s ideal for sole traders because:

• No-code payment links: Stripe lets you create hosted payment pages in minutes—no website or coding skills needed. Share a link via email, WhatsApp, or social media, and customers can pay by card instantly.
• Scalability: Start small and add features like subscriptions or invoicing as your business grows.
• Competitive pricing: 1.5% + 20p per transaction, with no hidden fees.

Square

Square is great for in-person sales. It offers affordable card readers (£19 + VAT) and charges 1.75% per contactless or chip-and-pin transaction. It’s simple to set up and integrates with online tools if you expand.

PayPal

PayPal’s “Pay Now” buttons and invoicing tools are popular among sole traders. Fees start at 2.9% + 30p per transaction, slightly higher than Stripe, but its brand recognition can build trust with customers.

SumUp

SumUp focuses on affordability, with card readers from £29 and a 1.69% transaction fee. It’s a solid choice if you prioritise face-to-face payments over online flexibility.

For most sole traders, Stripe’s no-code solutions and low barrier to entry make it a top pick, but your choice depends on your business model—online, in-person, or both.

How to Set Up Card Payments as a Sole Trader

Getting started is simpler than you might expect:

1. Choose a provider: Sign up online with Stripe, Square, or another option—no lengthy approvals needed.
2. Verify your identity: Submit basic details (e.g., ID, bank account) to comply with UK regulations.
3. Set up your tools: Order a card reader for in-person payments or create a payment link for online sales.
4. Start accepting payments: Promote your new payment options to customers.

With Stripe, you can be up and running in under an hour, thanks to its intuitive dashboard and no-code features.

Online Payments vs. In-Person: What’s Best for You?

As a sole trader, your payment needs depend on how you operate:

• Online payments: Perfect for service-based businesses (e.g., tutors, freelancers). Stripe’s hosted payment links let customers pay remotely without a website.
• In-person payments: Ideal for traders at markets or pop-ups. A card reader from SumUp or Square keeps things portable and affordable.

Many sole traders blend both—Stripe, for instance, supports online links and integrates with card readers via partners. Consider your customer base and sales channels when deciding.

Use an iPhone? You may not need a card reader

Several services in the UK are leveraging Apple's "Tap to Pay on iPhone" feature, which transforms an iPhone into a contactless card reader without additional hardware. Stripe is a prominent player, offering this functionality through its Terminal SDK and directly in the Stripe app, enabling businesses to accept in-person payments seamlessly. Other providers include Revolut and Tyl by NatWest, with upcoming support from Adyen, Dojo, myPOS, SumUp, Viva Wallet, Worldline, and Zettle by PayPal, as announced by Apple in 2023. Monzo has also partnered with Stripe to extend this feature to its business banking customers, broadening its reach. This growing adoption highlights the versatility and accessibility of Tap to Pay for UK sole traders and small businesses.

Common Myths About Card Payments for Sole Traders

Let’s debunk a few misconceptions:

• “It’s too expensive”: Fees are often lower than the cost of losing cash-only customers.
• “I need a website”: Not true—Stripe’s payment links work standalone.
• “It’s complicated”: Modern providers prioritise simplicity, with no tech expertise required.

Card payments are more accessible than ever, even for small-scale sole traders.

Conclusion: Embrace Card Payments with Confidence

Accepting card and online payments as a sole trader isn’t just a convenience—it’s a game-changer. With providers like Stripe offering no-code solutions, low fees, and instant setup, there’s no reason to delay. Whether you’re selling products or services, in-person or online, this shift can unlock new opportunities and keep your customers happy.

At DACCAA, we’re here to help your business embrace the digital world. For free help and advice, reach out to us today—we won’t hard-sell you. We’re happy to guide you through your options, from Stripe’s payment links to the best card readers for your trade. Let’s make your business future-ready, together.