Choosing the Right Payments Provider for Healthcare Tech: A Guide for Medical, Dental, and Optical Practices
21 August 2025
Written by Libby James
Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.
Payments Providers and Healthcare
In today’s fast-paced healthcare landscape, private practices from GPs and dentists to physiotherapists and optometrists are under pressure to modernise patient experiences while improving efficiency and cash flow. One key area ripe for innovation is payments.
As more practices adopt practice management software, there's an increasing expectation for these platforms to support seamless, secure, and user-friendly financial processes. 45% of healthcare businesses that use management software want more payment innovation.
Whether you run a single-site clinic or offer services across multiple locations, having the right payment provider can help you reduce administrative tasks, get paid faster, and provide better experiences for patients.
What Healthcare Practices Need from a Payments Provider
Healthcare is no longer an industry where patients expect to wait weeks for paper bills or fumble with cheques. Today’s patients are used to quick, digital-first payment experiences, whether they’re shopping online, dining out, or booking a holiday. Healthcare needs to keep up.
Here’s what modern private medical and dental practices, optometrists, and clinics expect from payment systems:
- Flexible payment options (card, contactless, pay-by-link, instalments, etc.)
- Fast, reliable payouts for healthier cash flow
- Compliance and security, especially around sensitive health and financial data
- Seamless integration with EHR systems and patient management software
- Mobile and remote capabilities, including pay-by-text or online portals
- Support for recurring payments or subscriptions (e.g., dental plans, physio packages)
Understanding Payment Methods in Healthcare
Offering a wide range of patient payment options is essential for improving patient satisfaction and reducing late or missed payments. While debit and credit card payments remain the standard, modern healthcare providers are increasingly embracing digital wallets (Apple Pay, Google Pay), pay-by-link, bank transfers via open banking, and even Buy Now, Pay Later (BNPL) solutions for elective treatments like aesthetics or orthodontics. Some practices are also implementing direct debit and subscription models to simplify repeat billing for ongoing care plans. By enabling convenient and flexible healthcare payment methods, practices can improve cash flow, reduce administrative tasks, and deliver a smoother financial experience for patients.
Embedded vs Integrated Payments: What’s the Difference?
If you're exploring payment partnerships for your healthcare platform or practice management software, you'll come across two terms: embedded payments and integrated payments.
Integrated Payments
This model connects your software to an external payment processor via APIs. While it allows for automation and reduces manual errors, you're still juggling multiple vendors and systems, often requiring more support and customisation.
This is a more advanced approach. Here, payment functionality is built into your platform, so the entire transaction journey—from entering card details to receiving confirmation—happens within your app or site. Patients never have to leave your environment, and you stay in control of the experience.
Example: A dental practice using a patient portal with embedded payments can let patients’ book, pay, and receive invoices without redirecting to third-party platforms. It’s smoother, more secure, and ideal for recurring visits.
Why Embedded Payments Are Gaining Momentum in Healthcare
As more patients turn to digital tools to schedule appointments, manage prescriptions, and review lab results, there’s a natural opportunity to embed payments directly into that journey. Benefits include:
Improved Patient Experience
Reduce checkout friction and provide a consistent, branded experience—whether patients pay online, via app, or in-clinic.
New Revenue Streams
Platforms offering embedded payments can monetise transactions through interchange fees or subscription models, great for SaaS healthcare providers.
Real-Time Data and Insights
Track payment performance, identify patient trends, and improve financial decision-making with built-in analytics.
Scale Globally
For growing practices or healthcare SaaS companies expanding internationally, embedded payments offer multi-currency support and local compliance—without juggling several vendors.
Key Trends Driving Payment Innovation in Healthcare
Healthcare professionals should also consider broader shifts that are influencing the payments space:
- Rising demand for flexible payment options as out-of-pocket expenses grow
- Digitisation of Electronic Health Records (EHR), which are now central to payments and billing
- Increased demand for elective and private health services
- Ageing populations are leading to greater volumes of appointments and recurring treatments
What to Look for in a Healthcare Payments Provider
When shortlisting payment providers for your healthcare business or SaaS platform, keep these criteria in mind:
- Developer-friendly APIs and modular tools to customise your checkout experience
- Multi-currency and local payment support for global scalability
- Proven reliability, with strong uptime, fast settlements, and a banking licence (if applicable)
- Robust security, including tokenisation, PCI DSS compliance, and fraud prevention
- Excellent customer support and clear onboarding processes
- Ability to support recurring or subscription billing for plans and packages
- Transparent pricing, with no hidden fees or restrictive long-term contracts
Implementing Embedded Payments in Healthcare Software
Ready to bring embedded payments into your software or practice? Here’s a quick roadmap:
- Map the full patient journey, from booking to payment to follow-up
- Keep payments in-platform, whether through app, email links, or terminal
- Secure data properly with encryption and built-in compliance measures
- Test thoroughly using sandbox environments before going live
- Connect with your other systems, such as your CRM or accounting tools
- Monitor performance post-launch and continue optimising
How The Payments Directory® Can Help
Navigating the payments landscape, especially in healthcare, can feel overwhelming. With so many providers promising all-in-one solutions, it’s hard to know which one is truly the right fit.
That’s where The Payments Directory® comes in.
Designed to support healthcare businesses and software platforms alike, The Payments Directory® lets you:
- Compare vetted providers that specialise in healthcare and patient-focused services
- Filter by key features like recurring billing, EHR integration, or medical compliance
- Access verified insights on pricing, user reviews, and onboarding processes
- Connect directly with providers that meet your specific needs
- Stay compliant with industry regulations and patient privacy laws
Whether you're a practice manager, tech founder, or healthcare SaaS developer, The Payments Directory® helps you make confident, well-informed decisions about your payment partnerships, so you can focus on what matters most: delivering exceptional care to your patients.
FAQs
What is the best payment provider for private healthcare practices in the UK?
There’s no one-size-fits-all solution; your ideal payments provider will depend on factors such as your clinic’s size, patient demographics, service offerings, and existing software systems. Smaller practices may prioritise ease of setup, reliable card terminals, and simple online payment tools. Larger clinics or healthcare software platforms might require features like embedded payments, recurring billing, multi-currency support, and integration with electronic health record (EHR) systems. When evaluating providers, consider transaction fees, payout speeds, developer support, and regulatory compliance—particularly if you handle sensitive health or financial data.
What payment methods should healthcare providers offer?
To meet patient expectations, healthcare providers should offer:
• Card payments (chip & PIN, contactless)
• Mobile wallets like Apple Pay and Google Pay
• Pay-by-link or pay-by-text for remote or after-hours payments
• Bank transfers via open banking
• Direct debits for subscription-style plans
• Buy Now, Pay Later (BNPL) options for elective treatments such as aesthetics or orthodontics.
Offering diverse methods improves access to care and reduces missed or delayed payments.
What is the difference between integrated and embedded payments?
Integrated payments connect your system to a third-party payment processor via API. The transaction happens externally, and you may need to reconcile data manually.
Embedded payments, by contrast, build the payment functionality directly into your platform or patient portal. This creates a seamless experience where patients pay without leaving the booking system or app. Embedded payments offer more control over branding, data, and user flow—especially valuable for multi-site clinics or SaaS platforms.
Can I offer payment plans or subscriptions for treatments?
Yes. Many payment providers support recurring billing models suitable for healthcare. You can set up automated payment plans for services like:
• Orthodontic treatment (e.g. monthly instalments)
• Physiotherapy packages
• Private GP memberships
• Skin or aesthetic treatment courses
How secure are embedded payments in healthcare platforms?
Embedded payments are designed with robust security in mind. Look for providers that offer:
• PCI DSS Level 1 compliance
• End-to-end encryption
• Tokenisation (to protect cardholder data)
• 3D Secure and multi-factor authentication
Security is especially critical in healthcare, where payments may connect with electronic health records (EHRs). Using a provider that regularly updates security protocols and supports GDPR compliance is a must.
Are healthcare payments regulated differently in the UK?
Healthcare payments must follow the same financial regulations as other sectors, including PCI DSS, anti-money laundering (AML), and Strong Customer Authentication (SCA) under PSD2. However, because these payments often involve sensitive medical and personal data, practices must also comply with GDPR and UK data protection regulations. Where payments interact with health records, your system must ensure strict data segregation and audit trails.
Can embedded payments work with my practice management software?
Yes, many providers offer flexible APIs or pre-built integrations for popular platforms like Cliniko, TM3, Jane App, and Pabau. For example, physiotherapy practices using Cliniko can integrate with Stripe to enable in-app payments. Dental or optical practices may use platforms that support in-person payments via integrated terminals or online invoices. If you’re using a custom or niche system, look for a provider with open API documentation and developer support.
How do I choose the right payment provider for my clinic?
Start by identifying your key requirements, such as support for in-person terminals, recurring billing, integration with existing systems, or multi-location support.
Then compare providers based on:
• Transaction fees
• Settlement speed
• Ease of integration
• Security features
• Customer support availability
• Compliance with healthcare data standards
For example, a small optical practice may value easy onboarding and local card acceptance, while a multi-site private healthcare brand might prioritise embedded payments and unified reporting across locations.
