Setting up your payment gateway is the final hurdle before your store can officially accept British pounds. In the UK, the process is uniquely streamlined thanks to the deep integration of local banking standards and mobile-first payment habits.

At Developers Design Guru, we’ve seen that a well-configured payment stack can reduce cart abandonment by up to 20%. Here is your technical and strategic guide to setting up payment gateways on Shopify UK in 2026.

How to Set Up Payment Gateways on Shopify UK: The 2026 Guide

The UK e-commerce market is one of the most advanced in the world. British shoppers expect a “frictionless” experience, meaning they want to see their preferred currency (£) and their preferred methods (Apple Pay, PayPal, or Klarna) the moment they hit the checkout.

Step 1: Activate Shopify Payments (The Foundation)

Shopify Payments is the native solution for UK merchants. It eliminates the need for a separate merchant account and removes the “third-party transaction fee” (which can be as high as 2%).

The Setup Process:

Navigate to Settings > Payments in your Shopify Admin.
In the Shopify Payments section, click Activate Shopify Payments.
Submit Business Details: You will need your UK Business Tax ID (CRN or VAT number) and your registered business address.
Identity Verification: Per UK anti-money laundering laws, the store owner must provide a scan of a UK Passport or Driver’s Licence.
Bank Account: Enter your UK bank account details (Sort Code and Account Number). The account must be in GBP to avoid heavy conversion fees.

Step 2: Configure Accelerated Checkouts

UK customers are mobile-first. Accelerated checkouts allow them to bypass the shipping and billing forms entirely.

Shop Pay: Shopify’s own one-click checkout. It’s significantly faster than guest checkout and is highly trusted in the UK.
Apple Pay & Google Pay: These are activated automatically when you turn on Shopify Payments. Ensure they are enabled under Manage in your payment settings.

Step 3: Integrating PayPal Express Checkout

Even with Shopify Payments active, PayPal remains a requirement for the UK market. Many British shoppers feel safer using PayPal for new or unknown brands.

On the Payments page, find the Additional Payment Methods section.
Click Activate PayPal Express Checkout.
You will be redirected to PayPal to log in. Ensure you have a PayPal Business Account.
Once connected, Shopify will automatically sync your tracking information to PayPal, which helps release your funds faster.

Step 4: Adding “Buy Now, Pay Later” (Klarna & Clearpay)

In 2026, over 30% of UK fashion and electronics purchases use a BNPL (Buy Now, Pay Later) service.

Klarna for Shopify Payments: You no longer need a separate Klarna app. You can simply toggle Klarna ON within your Shopify Payments management settings.
Approval Time: Klarna will perform a background check on your business. This usually takes 24–72 hours. Once approved, “Pay in 3” will automatically appear at your checkout.

Step 5: Essential “UK-Specific” Final Checks

1. Enable 3D Secure (3DS2)

To comply with Strong Customer Authentication (SCA) in the UK, your gateway must support 3D Secure. Shopify Payments handles this natively, but if you use a third-party gateway like Opayo (formerly SagePay), you must manually verify that 3DS2 is active in your provider settings to avoid declined transactions.

2. Set Up Your Statement Descriptor

Go to Settings > Payments > Manage. Ensure your Statement Descriptor is your clear business name (e.g., DEV-DESIGN-GURU). If a customer sees a random string of numbers on their bank statement, they are likely to initiate a chargeback.

3. Test Mode Simulation

Before you launch, you must test.

Go to Manage under Shopify Payments.
Scroll to the bottom and select Enable Test Mode.
Place a dummy order using a test card number (e.g., 4242 4242 4242 4242).
Important: Turn Test Mode OFF before your first real customer arrives!

The Verdict: The “Perfect” UK Stack

For 95% of UK businesses, the ideal setup is:

Shopify Payments: For all major credit/debit cards.
Shop Pay/Apple Pay: For mobile speed.
PayPal: For customer trust.
Klarna: For higher Average Order Value (AOV).

What’s your next move? Setting up the gateway is just the start of your financial setup. Would you like me to write a guide on “Optimizing your Shopify UK Checkout for Maximum Conversion” next?