A hosted payment page is one of the easiest and simplest ways for a small business to handle that entire payment process. Instead of building your own payment infrastructure, you let a trusted provider, like iwocaPay, Stripe, or PayPal, do it for you. In this guide, we break down what a hosted payment page is, how it works, and if it's a good option in the context of your own business.
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When someone buys something online, it can feel like a bit of a risk, as they haven't seen the product with their own eyes. Therefore, as a business owner, you need to make your customer journey feel as smooth and safe as possible. When they enter their payment details, the payment should be facilitated speedily without an issue, and they can continue with their day, either offline or on. But how do you make sure that part of the experience happens seamlessly?
A hosted payment page is one of the easiest and simplest ways for a small business to handle that entire payment process. Instead of building your own payment infrastructure, you let a trusted provider, like iwocaPay, Stripe, or PayPal, do it for you. In this guide, we break down what a hosted payment page is, how it works, and if it's a good option in the context of your own business. Let's break it all down below.
A hosted payment page is a secure web page provided by a payment service where your customers complete their transactions. It’s “hosted” because it sits on your payment provider’s server, not yours. When people buy things online, many times they will be taken to a separate URL from the site they were purchasing from; this is a hosted payment page.
In plain terms: your customer fills their cart on your website, then they’re redirected to the payment provider’s page to pay. Once the payment is done, they return to your site with a confirmation. With this setup, a business does not need to handle sensitive card data or build complex encryption. It is also advantageous for complying with the Payment Card Industry (PCI) standards, which can appear to be in a state of constant flux. It's important to note, however, that unlike a Merchant of Record (MoR), a hosted payment page does not necessarily absolve the seller of liability as it pertains to payments.
Let's say you run an online business selling handmade candles of all colors and flavors. Here’s what happens when a customer checks out using a hosted payment page:
Everything sensitive, the card number, billing address, and payment token, is handled by the provider, not your site. That’s why small businesses often choose hosted payment pages: they offer enterprise-level security without the heavy lifting.
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For small and medium businesses, hosted payment pages are an easy way to accept payments while reducing security and compliance worries. Here are some of the main benefits
At the end of the day, the hosted pages let you start taking payments quickly and securely, while focusing on your products and customers instead of backend compliance.
Just like everything, there are indeed some drawbacks to hosted payment pages. Some of those are as follows:
Obviously, since the payment page is "hosted," you don't have nearly as much branding control as you do on your own site. Your logo and colors can usually be added, but the layout is fixed. If your brand relies heavily on design or storytelling, like a luxury retailer or artisan brand, this lack of control can be incredibly frustrating. Some hosted payment providers might offer more creative freedom, with things like choosing a template that better matches your style.
When customers are redirected off-site to complete their purchase, there’s a small chance they’ll hesitate or abandon the process, especially on mobile, where page loads and extra clicks matter. Remember, attention spans are an absolute premium these days. A study by the Baymard Institute found that around 18% of online shoppers have abandoned a cart because they didn’t trust the checkout process or found it too long.
Hosted pages rely on your provider’s servers, meaning you are outsourcing the tech to someone else. If they experience downtime, your payments pause too. For most modern platforms like iwocaPay or Stripe, uptime is above 99.9%, but for businesses running limited-time campaigns or flash sales, even brief disruptions can cause missed orders or upset customers.
Most hosted payment systems charge a small fee per transaction, usually between 1.4% and 2.9% plus a fixed amount (for example, £0.20). While that sounds small, it adds up for high-volume sellers. A business taking £100,000 a month in card sales could pay roughly £2,000–£2,500 in processing fees. On the flip side, you’re paying for the convenience and compliance coverage that would otherwise cost far more to build in-house.
Hosted payment pages are one of the main games in town, but they aren't the only ones. Not all payment systems are built alike. There are two other quite common payment methods: integrated checkouts and payment links. Each method handles transactions differently and suits different types of businesses.
This is the plug-and-play option. You simply link your site to a secure checkout page managed by your provider. It’s easy to set up, secure, and it works across devices. For example, an online bakery using iwocaPay can start taking card payments within a day, without touching any code. It’s also the safest option since the provider handles encryption, fraud protection, and data compliance.
You see integrated checkouts all the time on big retail websites like ASOS or Amazon. The payment form sits right on their site, giving customers a seamless experience without redirection. But with that control comes responsibility. You’ll need a developer to connect payment APIs, maintain compliance, and manage updates. For small teams, that can mean extra cost and technical complexity that they might not be familiar with. Integrated checkouts shine when branding and speed are top priorities, for instance, when you want to keep your logo and design visible through the entire checkout process.
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Think of these as the simplest way to collect money. You create a link or QR code through your provider (like iwocaPay or PayPal), then share it via email, text, or social media. When a customer clicks, they’re taken to a secure page to pay. It’s perfect for service-based work, say, a local photographer who emails clients a payment link after a shoot, or small B2B invoices that don’t need a full ecommerce site.
A 2024 UK Finance report found that over 65% of small businesses now use hosted or link-based payments because they reduce fraud exposure and setup time. Meanwhile, larger retailers continue to invest in integrated checkouts to improve conversion rates and maintain brand consistency.
In short:
According to the UK Finance report, most small businesses now prefer hosted or link-based payments, which are faster to set up and require less compliance work. Larger retailers, however, continue utilising and investing in integrated systems to keep full control over their brand experience. It's really a size difference more than anything; large companies can afford to invest in the complexities of payment processing, where smaller shops need to utilise third-party payment processing.
Setting up a hosted payment page is usually quick. Here’s a straightforward process any business can follow.
