Payment Links for Small Businesses
A payment link is the single biggest improvement most small UK businesses can make to their invoicing. One URL, one click, and the customer pays from their phone in seconds — instead of copying sort codes into their banking app at a desk.
A payment link is a URL that opens a hosted checkout where your customer pays by card, Apple/Google Pay, or sometimes bank transfer. Most UK business banks (Tide, Starling, Monzo Business, Mettle) and invoicing tools (Xero, QuickBooks, FreeAgent) include payment links. Specialist providers (Stripe, GoCardless, PayPal, Square) offer more features. Card fees are typically 1.4%–2.9% per transaction; bank transfer links via GoCardless or open banking are usually cheaper but slower.
What a payment link actually is
A payment link is a unique URL that takes the customer to a secure, hosted checkout page. The link can be:
- Single-use — generated per invoice with the amount and reference pre-filled
- Reusable — fixed-amount or amount-at-checkout, useful for deposits, donations or product sales
- Subscription — sets up a recurring charge with the customer's consent
The customer sees only the checkout — no app downloads, no account creation. Most providers support Apple Pay and Google Pay, which often improves conversion materially over typing card numbers manually.
Where UK small businesses get payment links
| Provider | Best for | Typical card fee | Notes |
|---|---|---|---|
| Tide / Mettle / Starling / Monzo Business | Built-in to your business account | 1.5%–2.5% | Simple, fast, payouts to your business account |
| Xero / QuickBooks / FreeAgent (via Stripe or GoCardless) | Already using accounting software | 1.5%–2.9% | Auto-reconciles in your books |
| Stripe | Online businesses, more developer control | 1.5%+20p (UK cards), higher for international | Best ecosystem, hosted checkout, recurring |
| GoCardless | Recurring B2B invoices, larger one-off invoices | 1%+20p (typical), capped per transaction | Bank Debit — slower but cheap |
| PayPal Business | International customers, marketplace sellers | 1.2%+30p UK, more for FX | Wide consumer recognition |
| Square | Hospitality, in-person + online | 1.4%+25p | Strong in-person POS hardware |
Always check the provider's current pricing page; FX, premium card surcharges and instant payouts can change the all-in cost.
Fees and trade-offs
The "cost" of a payment link isn't just the per-transaction fee. Consider:
- Payout speed — instant, T+1, T+2 or T+7 vary by provider and risk profile
- Refund handling — some providers refund the fee, others don't
- Chargeback exposure — card payments can be reversed up to 120 days later; bank transfers and Direct Debit have different rules
- FX margins on non-£ payments are often 2% on top of the headline transaction fee
- Reconciliation — fees coming out at different points than the gross amount can confuse bookkeeping; a tool that posts net + fees automatically saves real time
On a £500 invoice: card payment at 1.9% = £9.50 fee. Bank Debit via GoCardless at 1% capped at £4 = £4 fee. Manual bank transfer = £0 fee but typically waits 5–14 days for the customer to action it. The cheapest option often costs more in slower cashflow.
Adding a payment link to an invoice
- Open your invoicing tool or business banking app
- Create or open the invoice as normal
- Look for a "Add payment link", "Pay now" or "Enable payment" toggle
- Select which payment method(s) to accept — card, bank, Apple Pay, GoCardless
- Save and send. The link is embedded in the email and printable PDF
If your provider doesn't have native payment links, Stripe Payment Links can be created in seconds and pasted into any invoice — useful as a quick upgrade without changing accounting software.
Best practice that increases collection rate
- Put the link above the bank details in the email body, not just in the PDF attachment
- Call the button "Pay now" — not "Click here". Clear verb, clear action.
- Enable Apple Pay / Google Pay in your provider settings — checkouts complete faster from phones
- Test on your own phone before sending the first real invoice
- Leave the bank transfer details as a backup — some buyers still prefer it
- Track which payment method customers actually use after 3 months and adjust which to prioritise
£200 free cash
Use referral code REFER200 through our tracked Tide link and meet Tide's current qualifying terms.
Open a Tide business account and get £200 free cash when you use referral code REFER200 and meet Tide's current qualifying terms.
- Free standard UK business account opening
- Invoicing, payment links and expense cards in one app
- Referral code
REFER200required for the £200 free cash offer, subject to current provider terms
Frequently asked questions
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Information on this page is general guidance for UK small businesses and is not financial, tax or legal advice. Tax rules, allowances and product terms change. Always check current information with HMRC, Companies House or a qualified professional before making decisions.